October 1, 2008

Novan to Install One of Nation’s Largest Solar Hot Water Systems for Hotels at the Hyatt Regency Scottsdale Resort and Spa

Novan Solar Inc. of Golden, CO will install one of the nation's largest solar hot water systems ever built for a hotel at the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch in Scottsdale, Arizona. The Novan solar thermal system will provide domestic hot water for guest rooms, the main laundry services room and all the restaurants at the 492-room resort.

The 27-acre Hyatt Regency Scottsdale Resort and Spa has complete resort facilities, including a 2.5 acre "water playground", 27-holes of championship golf, world-class tennis, Spa Avania and the Native American and Environmental Learning Center as a part of the 560-acre Gainey Ranch resort and residential development in Scottsdale.

The 172-collector Novan solar system is part of an energy-reduction project designed by the Hartman Company, an engineering and design firm in Austin, Texas, which will eventually reduce the resort's energy use by approximately half. The solar system has a 20,000-gallon storage tank, larger than currently required, which will enable a possible Phase 2 of the project doubling the current system size.

"This solar project is not simply an add-on system," Tom Hartman, president of The Hartman Company stated. "It represents a component of a major re-design of the resort's hot water infra-structure and modifying how the resort produces and utilizes hot water resources. Due to substantial energy savings, state utility incentives, and the federal Investment Tax Credit for renewable energy, the system will pay for itself in approximately three years."

The solar water heating system from Novan will generate nearly 31,600 therms (316 million BTUs) of energy yearly. More than 156 metric tons of carbon dioxide (green house gases) will be offset by the system each year. This is the equivalent to carbon sequestered by 133 acres of forest per year or over 360 barrels of oil being consumed yearly.

Arizona Pubic Service (APS), the local power utility, will be partnering with the project through their Renewable Energy Incentive Program. This partnership will help the Hyatt to achieve an approximate 3-year payback on their investment by having APS purchase the Renewable Energy Certificates generated by the commercial DHW system. The solar project will be installed and operating by the end of this year.

"This project is in accordance with Hyatt Corporation's global initiative of environmental consciousness and sustainability. This initiative encompasses building, designing and managing innovative and sustainable hotels, while protecting the natural environment and local communities in which we operate around the world," stated Jennifer Schaff, Director of Engineering for the Hyatt Regency Scottsdale Resort and Spa.

"We have been told that we were the first resort in the country to have an environmental program including energy efficiency, waste minimization, environmental health and safety for employees, and environmental education for our guests," added Ms. Schaff.

The Hyatt system will also feature the new Novan Spectrum(TM) Commercial Controller, the solar industry's first controller designed for commercial thermal applications that integrates directly with existing building management systems (LON and BacNet compatible). The Novan controller also offers a remote web server for monitoring and control, 100% control of pumps and valves, expandability for unlimited data points, and interfaces with Fat Spaniel(TM) hosting services.

Novan founder and president, Jacob Futro, stated, "Novan was chosen because of the stringent timeline and complexity of this project, and we are proud to be part of this ground-breaking project for the hotel industry. Our new Spectrum(TM) Controller is perfect for this type of project to maximize the solar performance."

Novan has also designed, and will complete this year, a 73-panel domestic hot water system for the newly renovated Andaluz Hotel (formerly La Posada) in Albuquerque, New Mexico. The 107-room Andaluz was developed by Goodman Realty and will be operated by Gemstone Hotels and Resorts.

Other Novan installations include: a 144-panel solar water heating system for the North Boulder Recreation Center in Boulder, Colorado, a 70-panel system for the new Erie, Colorado, Recreation Center and a 63-panel system for the new Aquaplex Recreation Center in Flagstaff, Arizona. In addition, Novan was recently chosen to provide a 64-panel system for the Durango, Colorado, Recreation Center, and a 68-panel system for the University of Colorado, Colorado Springs, Recreation Center. Novan has other solar projects in various stages of development in Colorado, Arizona and Utah.

Novan Solar Inc. is the largest solar thermal company in Colorado and the Southwest. Novan specializes in turnkey solutions for large-scale commercial and industrial water heating needs in addition to supplying systems for residences.