Boiler/Steam Production Power Shift

CHICAGO — It’s been said that boiler/steam-producing equipment is the heart of an industrial laundry operation.

For years, this equipment has been powered by fossil fuels, but in California, efforts are underway to shift boilers/steam production to electric power.

Rodrigo Patron, operations director at Lace House Linen in Petaluma, California, says the state is encouraging industries to move away from fossil fuels through California Air Resources Board (CARB) regulations and incentives.

“Electric steam boilers powered by renewable sources like solar and wind are being promoted as cleaner alternatives,” he says. “Furthermore, California’s Climate Change Scoping Plan aims for carbon neutrality by 2045, focusing on transforming industrial processes, including steam production.”

This change will likely move across the country, and it isn’t without controversy.

American Laundry News communicated with Patron and Michael Leeming, national sales manager for Parker Boiler Co. based in Los Angeles, to explore the status and challenges of the shift.

EQUIPMENT SHIFT

What’s the status of boiler/steam-producing equipment manufacturers shifting from fossil fuels to electricity?

“Steam equipment makers, especially boiler manufacturers, are increasingly offering electric and hybrid models instead of traditional fossil fuel systems,” says Patron.

Electric boilers are more energy-efficient and compatible with renewable energy sources, he shares.

“While the market for electric steam boilers is still developing, companies like Electro-Steam and Fulton are making notable progress,” Patron continues. “Although these boilers have higher upfront costs, they can save money over time due to lower maintenance needs and better energy efficiency.”

This shift is driven by regulations and the demand for sustainability, and Patron says the change is expected to occur over the next 10 to 20 years, in line with California’s climate goals and the national move to cut carbon emissions.

“Equipment updates will likely roll out gradually over the next decade, focusing on making electric boilers more affordable and practical,” he adds.

CHALLENGES

Leeming sees serious challenges to converting steam-producing equipment from fossil fuels to electricity.

First is the difficulty in converting gas-powered boilers to electric.

“We also sell electric boilers, and I cannot think of a single case where someone chose on their own to do this type of conversion on their own gas boiler,” shares Leeming.

He notes two reasons why:

The cost of electricity in California commercially and residentially is one of the highest in the nation. Commercial rates like at the Parker Boiler factory are 20 cents per kilowatt-hour (kwh), and residential rates are currently as much as 53 cents per kwh. According to the California Public Utilities Commission (PUC), the state average for commercial is 29.13 cents/kwh, which is 116% higher than the national average. California’s average residential electricity rate is 31.64 cents/kwh, which is 87% higher than the national average. Natural gas has been steady at about one-third of the cost of those commercial rates.
The infrastructure is not there, and even if everyone was told to convert to electric now and grid infrastructure construction started, it would be 30 years or more to complete the buildout required.

Leeming notes that currently 46% of power generated in California is from fossil fuels (60% average nationwide).

“There are 35 air districts in California in addition to the California Air Resources Board (CARB) and EPA, we call this the love triangle,” he says. “Many of the districts have started zero-emissions regulations.

“For example, in Southern California, we fall under the South Coast Air Quality Management District (SCAQMD). One rule that affects most dry cleaners and laundries is Rule 1146.2, which was just amended from 20 parts per million (ppm) NOx to 0 ppm NOx. Starting January 2026 and in phases to 2032, you will have to install a boiler, water heater or pool heater that is zero emissions.

“They want these commercial facilities to use a heat pump to generate steam. From our research, currently technology is not there to produce the required 345 F steam temperature finishing equipment or an ironer requires. So, that means an electric resistance boiler.”

Leeming says the initial capital cost of this equipment is not much different than its gas equivalent, but operation costs are.

“I sit on several association boards, and with many others from CCA, or California Cleaners Association, met with the AQMD and tried to generate not only more knowledge and public awareness of what is required in front of AQMD board at their headquarters but brought several of them out to a few dry cleaners’ sites to evaluate and see firsthand for themselves each situation,” he shares.

“For example, one site visit was a prominent dry cleaner, Milt and Eddie’s in Burbank.

They run two 25 horsepower (hp) Parker Boilers or 1,075,000 Btu gas steam boilers and one 300,000 Btu gas-fired water heater. If they have to convert to electric resistance boilers, cost is prohibitive, but that is not a factor in the rule.”

Like some cities in California, the City of Burbank generates its own power, Leeming shares, and the city told the owner it could not give him any more power “to run a coffee maker.” It has both a natural gas and coal-fired power plant to generate most of the city’s electricity.

“For each 25 hp unit, service requirements at 460V/3ph are 450 amps each, the water heater is about another 300 amps,” he says. “He has about 200 amps now. That’s another 1,200 amps.

“The city asked him for a $10,000 deposit. They would study it and get back to him if they provide service within three years. They projected if they could import this power, the costs of the infrastructure would be on him as the business owner, estimated at approximately $250,000 to $300,000. That doesn’t include what it costs internally for his building.

“We asked for his current utility bills to calculate costs. Running 24/7 as he does now, his average natural gas costs are $11,000 per month. With the current rate he is paying the city for electricity, which won’t have the demand charges this new large draw will entail, that same energy just for the gas-fired equipment will go to 3.3 times this amount, or $36,300. The price of a garment went up three-fold.”

Leeming says Parker Boiler has a similar situation at its factory.

“We heat our building with one of our boilers, hot water at 180 F,” he says. “They do make heat pumps that can generate that temperature, but they’re 13 feet long and won’t fit in the boiler room. By the time we ran power, reinforced a pad on the roof, and purchased a heat pump unit, the turnkey cost was bid at $ 156,000. And we build boilers.

“These are two simple examples of conversion costs. Imagine the laundry plants currently with two, four, six or even eight 48-hp steam boilers. That’s 7,200 amps for a large industrial laundry. Where is that coming from?”

INDUSTRIAL LAUNDRY EFFECT

What does Patron see for laundry operators with the power source shift in boiler/steam production?

“In the long run, switching to electric steam could improve your steam quality and efficiency providing more consistent temperature, better steam flow, and reducing energy waste,” he says.

“Cost-wise you will most likely pay more for an electric boiler but savings on maintenance and fuel should make up for it over time. While electricity prices can vary, California’s shift to renewables may lead to more stable rates and government incentives like rebates and tax breaks.”

California’s rules and programs like the California Clean Energy Jobs Act encourage companies to switch to electric boilers and other energy-saving tech and provide financial help and resources, according to Patron.

“Staying up to date with government and manufacturers programs can help the process a lot smoother,” he adds.

BEYOND CALIFORNIA

Patron believes the steam production shift from fossil fuels to electricity will reach beyond California, in time.

“I think this shift will likely spread across the country, although the pace may vary by region,” he says. “California is a leader in clean energy initiatives, but other states are adopting similar goals for carbon reduction, especially with the Clean Energy Standard and Renewable Portfolio Standards becoming more common across the U.S.

“The processes could probably occur over the next 10-30 years, depending on regional energy policies, incentives, and of course, technological advancements.”