Green moves: Chennai takes the LEED

Old Mahabalipuram Road, known as 'IT Corridor' in popular Chennai parlance, has established its reputation not just as the technological nerve centre of the city but also as an emerging nursery of the green corporate ecosystem.

It houses the 1.8-million sq ft Olympia Technology Park in Chennai which is now recognized as the world's largest 'green' building and was recently awarded the LEED (Leadership in Energy and Environmental Design) Gold Rating.

"Olympia Tech Park has the lowest energy consumption, high natural lighting systems, 100 per cent water recycling and other environment-friendly practices," says Ajit Chordia, managing director of Khivraj Tech Park Pvt Ltd, which owns Olympia Tech Park.

The building plays host to companies like Hewlett-Packard, ABN Amro, Visteon, Mindtree Technologies and Verizon.

At present, a third of the power required to run the building is met through renewable energy sources. With the opportunity to meet two-thirds of power requirements through renewable energy sources and other green practices over the next two years, the tech park has more carbon credits to gain in the pipeline.

Olympia Tech Park stands to earn revenues in the region of Rs 1.50 crore a year, to begin with, by forward trading in certified emission reductions (CERs) or carbon credits.

"In our case, returns via carbon credits amounts to just 2 per cent of our revenues," says Chordia, adding: "But the goodwill generated among our participant companies is unlimited."

"The long-term gains from energy efficient sources like air-conditioning, renewable energy sources like recycled water, efficient ventilation systems and lesser carbon emissions will result in annual savings of at least 20 per cent of our overall maintenance expenses," says a developer.

The park has applied for registration with the United Nations Framework Convention on Climate Change (UNFCC), as a forerunner to entering the lucrative carbon credit trading market.

"We expect UNFCC approval within three weeks, following which we will commence carbon trading. We expect to generate 20,000 CERs annually for now, but will generate more carbon credits as we comply with additional compliance norms laid out under the Kyoto Protocol," Chordia said.

The Rane Institute of Employee Development and L&T's EDRC 1 are among the new buildings to be certified with LEED carbon emission ratings in Chennai.

According to reports, green buildings would consume at least 40-50 per cent less energy and 20-30 per cent less water vis-a-vis a conventional building. Prem C Jain, chairman of the Indian Green Building Council, says that the market potential for green building materials and equipment will reach Rs 15,000 crore by 2010.

Technology parks that have not gone in for formal compliance with UNFCC, Green Building Council or LEED norms are planning to do so in the future. Ascendas India, a division of Ascendas Property Management Services, does not rule out applying for formal permission to trade in CERs within a year or so.

"Yes, we are not 'green' in the common sense of the term, but we have strong EHS (Environmental Health Safety) in place at the International Tech Park (ITP) in Chennai," says Velan C, deputy city head (Chennai operations), Ascendas India.

The park has a reverse osmosis plant to process drinking water while recycled sewage water is used to service urinals and flushing requirements within the building. Ascendas is looking to gain QS 14001 certifications for the second and third phases of ITP presently under development, christened 'Crest' and 'Zenith'.

While putting in place such measures would typically cost between 5-7 per cent of a building's project cost, developers recover this within two years of starting operations.

Velan notes that carbon credits typically apply to projects with high-dependence no heat generating systems like transformers andgenerators. "While these are not applicable to us right now, we will look forward to trading in future on emission reduction measures."

He adds: "Revenues from carbon credits are still marginal, so compliance will not make you too much money. It's the spirit of compliance which we have always adhered to."

The LEED gold rating promoted by the US Green Building Council will be more in demand, with big developers like RMZ and L&T looking at actively promoting compliance within their upcoming projects.

The LEED building rating system, a measurement system designed for rating new and existing commercial, institutional and highrise residential buildings, evaluates aspects of human and environmental health, sustainable site development, energy efficiency, water conservation, selection of materials and indoor environmental quality. This rating system is widely adopted across the globe.

Gold LEED Rating

Olympia Technology Park, Chennai

ABN Amro,Chennai

RMZ Millenia Business Park, Chennai

Silver LEED Rating

Rane Institute of Employee Development, Chennai

L&T EDRC 1, Chennai