January
18, 2007
Presenting: Alex Winch & the Beaches
Solar Laundromat – Unstoppable when it comes to Championing
Renewable Energy & Innovative Entrepeneurship
Over the last couple of years I have had the opportunity to interview
many interesting personalities: tourism experts, authors, philanthropists,
and enlightened entrepreneurs. For my article
series about Toronto’s Beach neighbourhood, I have specifically
been looking to interview business owners who have come up with
socially and environmentally innovative business ideas.
Michael Prue, the Provincial Member
of Parliament for the Beaches / East York, pointed me in the direction
of Alex Winch, owner of the Beach Solar Laundromat. You might think
– a laundromat, how can that be an interesting business? Well,
read on and you will see that this business and its owner are definitely
outside the norm.
Alex Winch explains his solar technology
Early this cold Thursday morning I met Alex at his premises on
Queen Street East and got an introduction to this unusual business.
When Alex bought the laundromat in 2002 it was outdated and dingy,
so Alex got to work and replaced almost half the washers and dryers
with new high-efficiency machines. He also put the place through
a complete cosmetic overhaul and brightened it up considerably.
But where it gets really interesting is behind the scenes, where
the entire operational process of the laundromat was redesigned.
Alex always wanted to turn this business into a leading-edge environmentally
sustainable business. So in October of 2002 he ordered eight solar
panels which were commissioned in December of 2002. Alex had planned
all along to use solar energy for heating the water needed in his
laundry facility.
Alex explained that the eight solar panels on his building’s
roof measure about 250 square feet and were installed by a company
named Solcan, located in London, Ontario. The thermal panels include
a layer of black copper with a four inch copper vane that contains
a three/eighth’s inch copper tube with antifreeze flowing
through it. This antifreeze consists of food-grade propylene glycol
and transfers the heat energy from the roof through the entire system
down to a heat exchanger in the basement. Even if there was a leak
in the antifreeze conduits, this would not contaminate the water
supply.
The anti-freeze has a freezing point of -25 degrees Celsius at
which point the glycol gels, shutting down the solar water heating
system since the glycol simply stops moving inside the tubes. In
this case a natural gas backup boiler system kicks in and starts
heating the water.
In the interest of making his business more environmentally sustainable,
Alex has also replaced the lighting system and installed new high-efficiency
fluorescent tubes that are under an aluminum reflector. The reflector
essentially doubles the light output of the actual fluorescent tubes.
Combined with high-efficiency electronic lighting ballasts, this
measure alone has resulted in lighting energy savings of 72%. Alex
adds that these energy-conservation measures are important since
the lights in his business are on for 18 hours a day, 7 days a week.
Alex points to the air handler
One of the first things that Alex explained to me was an air handler
above the door which draws warm moist air in from the Laundromat,
runs it through coils and dehumidifies the air. The condensation
is captured and gets transferred through a pipe system into a basement
drain. The condensate water is not re-used in the laundromat out
of concern for lint contamination of the water.
To illustrate the operation of his company’s solar water heating
system, Alex took me into the basement where he showed me an assortment
of water tanks, piping and sophisticated measuring equipment that
calculates the actual energy output and natural gas displacement
provided by this solar water heating system.
In the basement there are two different water heating systems: the
solar heating system that works with a heat exchanger and a 200
gallon warm water storage tank, and a backup natural gas heating
system that uses a natural gas boiler with a separate a 100 gallon
hot water storage tank. The separate 100 gallon storage tank replaces
two 200 gallon storage tanks that were previously used. The new
natural gas boiler can heat 100 gallons of water in seven minutes,
and this new smaller and more efficient system provides “just-in-time”
water heating, and only heats water when needed. The additional
benefit of this system is that it stores a much smaller quantity
of hot water which significantly reduces energy losses from water
storage.
The building’s brick chimney was knocked down to roof-level
and now serves as a conduit for the pipes holding the glycol that
circulates up to the solar panels on the roof. From the panels the
heated glycol then travels back down to the basement, passes through
a heat exchanger and heats the hot water for the laundry facilities.
A second heat exchanger heats water that circulates through the
radiators and provides the space heating for the building. An air
conditioning system links three different air handlers in the building
The water temperature for the laundry is 120 degrees Fahrenheit
(about 55 degrees Celsius) which is just enough to dissolve laundry
soap, resulting in no additional heat loss.
All the heating and cooling processes are controlled by thermostats,
and a sophisticated measurement system calculates how much natural
gas has been saved by using solar energy. This measurement system
is connected to a website on the Internet (www.bslvideo.com)
which provides live energy monitoring to anybody who is curious.
The processes explained at the Beach Solar Laundromat
The website also provides a “live laundry cam” that
allows customers of the Beach
Solar Laundromat to see how busy the Laundromat is. Alex has
installed a low-resolution camera to improve customer service so
his clients can conveniently check from home when a good time for
doing laundry would be. A second high-resolution camera, whose images
are not publicly available, was installed for security purposes
since the laundromat is not regularly staffed. Some of the clients
were originally concerned about the cameras' intrusion on their
privacy, but once Alex explained that the low resolution cameras
would not provide sufficiently clear pictures to identify them (or
their dirty laundry), those concerns were alleviated.
Obviously Alex has a great connection to technology, and as he was
trying to explain the intricate details of his solar heating system
to me - a total novice to things such as heat exchangers and volumetric
flow meters - I asked him if he was an engineer. He explained that
he graduated in 1985 from engineering physics at Queens University.
Four years later he added the designation of chartered financial
analyst to his resume and set up his own company to sell research
about Canadian stocks to US hedge funds. In 1990 he started his
first hedge fund which was followed in 1993 by the opening of an
office at 667 Park Avenue in New York City. Based on his success,
he retired in 1995, an event he refers to as “Freedom 31”.
After that point he became a major shareholder in a casino company,
volunteered as head of investor relations and became the Chairman
of the Board. Alex was not happy with the way things were run at
that company and demanded that various changes be made. When management
did not respond to his concerns he left in 2002 and launched a hostile
proxy fight threat, in other words he threatened to take over the
company. Alex had talked to all the shareholders, and they were
prepared to vote for change. Alex demanded that the President resign
or he was going to “kick him out”.
An award to the Beach Solar Laundromat
Management initially ignored the threat, and three days later all
of the management and the Board of Directors resigned and named
him as the contact for the company. Alex explained that in a public
company you cannot do that, officers cannot simply walk away from
their responsibility. His lawyers advised him not to do anything.
A few days later another discussion ensued with the management and
Alex stated that he was not going to file the hostile proxy papers.
Instead he wanted management to make the changes he had requested,
otherwise he would sue them for willful damages.
The casino company’s management responded by issuing a statement
rescinding their resignation and implementing the changes that Alex
had demanded. Over the last few years the stock value has multiplied
seven times, the company is profitable and Alex Winch is one of
the largest shareholders.
At that time Alex was generally disenchanted with public capital
markets, and decided to create his own small business. Living just
five minutes away, he immediately looked at the laundromat when
it became available for sale and concluded that it might be an opportunity
for an interesting engineering project. And that’s how the
story started.
Alex’ interesting business model for the laundromat also includes
a wash and fold service that is offered by two local ladies from
Monday to Friday between 1 and 7 pm. The “fluff and fold”
service affords customers the convenience of simply dropping off
their laundry and picking it up completely done later. Alex does
not charge the two ladies for running their business out of his
laundromat, but his business benefits from greater capacity utilization
and load-shifting from the busy evening and weekend hours to less
busy daytime hours, creating a win-win situation for his business,
the wash and fold service providers and the customers. Alex Winch
always strives to find solutions that will provide the greatest
possible benefit to everyone concerned.
But Alex’s knowledge of renewable energy generation and innovative
business models did not stop with the Beach
Solar Laundromat: Alex combined his unique process of on-site
energy generation and monitoring and turned it into a successful
international commercial venture. Alex founded Mondial
Energy, a company with global capabilities to install solar
water heating equipment, complete with the requisite monitoring
systems, that generates solar thermal energy at the customer's site
and charges for the solar heat energy generated, regardless of where
they might be located.
The Beaches Solar Laundromat
The advantage to the customer is that they do not have to invest
in the expensive up-front capital costs to get their solar water
heating systems up and running. Instead, Mondial owns and operates
the hardware to generate the energy, and it assumes the maintenance
responsibility for the equipment. Customers are then billed at a
fixed monthly rate, based on how much energy the equipment generates.
For customers the ability to lock in energy costs is an important
factor in an environment of fluctuating and increasing energy prices.
In addition, the price of the solar energy delivered is lower than
the cost of a comparable amount of natural gas, making this an increasingly
attractive alternative to conventional natural gas water heating.
Last, but not least, energy production is completely green, free
of greenhouse gases.
Today, Alex is involved in several large-scale sustainable energy
retrofitting projects in Toronto: In November 2006, Mondial Energy
commissioned a renewable thermal energy system for the domestic
water needs at a 172
suite senior’s residence, operated by a local non-profit
organization called Neighbourhood Link Homes. Mondial installed
60 flat plate solar panels which are expected to reduce annual carbon
dioxide emissions by 40.3 tonnes and will bill Neighbourhood Link
monthly at affordable rates.
Solar energy generated by Mondial Energy will also provide water
heating at Wood Green Community Housing Inc., a 170 unit social
housing site on Queen Street East in Toronto. 108 solar panels will
displace an estimated 32,000 cubic meters of gas, resulting in 53
tons of greenhouse gas emission reductions per year.
The Beaches Solar Laundromat
Alex explains that at the present time his system is most well-suited
for commercial or multi-unit residential buildings. The economics
for single-family private homes do not yet work so well, particularly
since Canada offers very few incentives to switch away from conventional
energy sources. As a result he focuses on medium to large size projects.
Several substantial commercial projects are currently being negotiated,
including a major hotel in Atlanta and a casino hotel in Reno. Mondial
Energy is also bidding on a large-scale solar water heating
project in Hawaii. Contacts throughout the United States have been
very receptive to his unique way of on-site thermal energy generation.
In a way, Alex explains, he has come full circle: he went from being
involved with big corporations to becoming a small entrepreneur
and is now back to dealing with big business.
For his innovative sustainable energy efforts Alex has received
numerous awards, including the Bremen Partnership Award (the “Bremer
Umweltpreis” – The Bremen Environmental Award) for providing
high customer value, wide use in the community, sustainable use
of water and solar energy and for providing additional value in
terms of “social dimensions”.
Alex himself is so highly committed to sustainable energy that his
company Mondial Energy has become a partner in creating the Annual
Tourism Climate Change Awards. Two awards of $10,000, sponsored
by Mondial, will be handed out in November 2007:
• A World Tourism Responsible Energy Award with a global focus
• A Mission Africa Responsible Energy Award focusing on Africa
The Judging Panel for the Award will include prominent figures
from global organizations such as Maurice Strong from the Rio Earth
Summit, Jose Maria Figueres (past-president of Costa Rica), as well
as representatives of the National Geographic Society and the UNWTO
(World Tourism Organization). With this award Alex has indicated
his commitment to raising the profile of finding Climate Change
Solutions for the tourism sector.
The "Bremen Partnership Award"
Alex demonstrates his commitment to sustainable living even in
the selection of some of his personal accessories: he showed me
his Citizen Eco-Drive Watch, a stylish looking timepiece whose face
is a photovoltaic cell that powers the watch, eliminating the need
for batteries. Alex said the watch will work for 270 days without
exposure to light and Citizen’s marketing slogans often refer
to this timepiece as “unstoppable”.
Unstoppable is a moniker that could equally be applied to Alex Winch
– Alex will not stop until his mission to do his part in reducing
greenhouse emissions is accomplished.
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Gene Domagala - A human convenience
store of charity and community involvement in Toronto's Beach
Arie Nerman & the Beach Hebrew Institute:
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Vivetha Bistro: A popular spot
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Glenn Cochrane - Media
personality, author and expert fundraiser – a champion of
the Beach for almost 40 years
Michelle Gebhart: A
true Renaissance woman: from army brat to expert renovator, biker
lady, successful restaurateur & dedicated youth volunteer
Michael Prue: A working class success
story - from Regent Park to Queens Park
Alex Winch & the
Beach Solar Laundromat – Unstoppable when it comes to championing
renewable energy & innovative entrepreneurship
Mary Lee: A restaurant owner with a heart
for the arts
Marie Perrotta from the Pegasus
Community Project reaches for the stars
Burgie and Benedetta from the Konditor
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Bob Murdoch from Community Centre
55 - 25 years of community service in the Beach
Steve and Paul from Accommodating
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John Dowding: A private lesson in
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Lucille Crighton: A textile
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Lido Chilelli: Founder
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Fire Station 227: History, heroism
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The Balmy Beach Club - Legend
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The Garden Gate Restaurant a.k.a. "The
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Ralph Noble: Firefighter,
lifesaver and creator of the most famous mural in the Beach –
a noble man indeed
Sandra Bussin
- City Councillor and Deputy Mayor shows me her neighbourhood
The Toronto Beach Rotary Club:
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The Beaches Lions
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The Beach Business
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and activities on Queen Street East
Maria Minna:
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justice
The Beach Metro Community
News: Much more than just the news
The Kingston Road Business Community:
A neighbourhood undergoing revitalization and an integral part of
the Beach
Andrew Smith and Rachel Howard:
Creative entrepreneurs and dedicated community builders
Nevada's Ristorante: Where
hospitality is a family affair
Maria Minna: Another neighbourhood
walk and talk and discoveries along Queen Street East
St. Aidan's Church:The spirit of charity
in the Beach comes full circle
Gene Domagala takes me on a history
tour of the eastern and northern part of the Beach - a perfect day
of discovery
The Beaches Library: A centre
of learning for all ages
A walk along Kingston Road:
A shopping district definitely worth a visit
55 Division: Serving and protecting
- community policing in action
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