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Planet-Profit Report, reporting on sustainable development in the Western United States.

Building efficiency

Bay Area firm's technology monitors usage, predicts breakdowns

Helping green buildings stay that way, year after year, is the goal of software maker Scientific Conservation.

The San Francisco-based business’ technology monitors building systems that control heating and air conditioning, ventilation and electricity use. The service reports if those systems are operating at their peak and predicts equipment problems before any breakdowns actually occur.

So far, the company founded in 2007 has signed up major customers from aviation to retail, including 7-Eleven, Neiman Marcus Inc., Harley-Davidson Motor Co. and Boeing Co.

Most buildings monitored by the system are in the United States, but interest is also coming from abroad. By the end of 2011, as much as one-third of the company’s business could come from foreign destinations, predicts Chief Executive Officer Russ McMeekin.

A major U.S. firm operating in China is considering adding the remote monitoring system, he said. Canada is another likely market. McMeekin said utility firms in both California and the Province of Ontario employ similar approaches to encourage large customers to decrease their energy use, including giving rebates and other financial incentives.

Scientific Conservation recently added to its management lineup: cleantech veteran Alan White became vice president of corporate development in July. White, who previously worked for electric vehicle charging station developer Coulomb Technologies, will expand the company’s sales and business development team and identify new alliances with government groups and utility firms. “It’s an exciting time for the industry,” White said.

Company officials believe the need for their remote troubleshooting service will rise as more buildings attempt to meet efficiency standards developed by the Leadership in Energy and Environmental Design third-party sustainable certification program, also called LEED.

While LEED-certified structures are high-performance when they open, the buildings can lose their eco-friendly edge within a year or two. That’s an expensive “energy drift” which can result in unnecessary energy use and up to 20 percent less efficiency.

After reporting less than $5 million in revenue last year, the company now monitors about 8 million square feet of building space and is on track to boost that amount to about 20 million square feet by the end of 2010. Some of the increase is expected to come from existing clients requesting that more of their buildings be added to the monitoring network.

Two Silicon Valley venture capital firms have invested in Scientific Conservation. In June, The Westly Group joined Draper Fisher Jurvetson as part of a Series A investment totaling $9 million. Under that financing agreement, Gary Dillabough, a partner with Westly, joined Scientific Conservation’s board. Dillabough brings experience in LEED certified building development.

Scientific Conservation’s monitoring system continuously watches buildings’ energy use from a technology center in Atlanta. It downloads data from the building’s control system, synchronizes it with building plans and uses advanced mathematics to predict trouble. An automated alert informs the building manager if a sensor has died or a section of the system needs adjusting.

“Our goal is to protect and leverage our customers’ LEED investments,” White said.