#11386·EHS

Marathon Energy Efficiency Program

Plant-wide energy efficiency retrofit including LED lighting, HVAC recommissioning, and steam trap renewal.

ApprovedMedium
West · Marathon Site
Cody Smith PM
Jake Morales Submitter
Oct 17, 2026 Est. completion
Mar 21, 2026 Approval date
12 years Useful life

Approval timeline

  1. DirectorSarah Kim
    Approved1 month ago
  2. VP SupplyMike Chen
    Approved1 month ago
  3. VP OpsLinda Rodriguez
    Approved1 month ago
  4. CFOMatt Anderson
    Approved1 month ago
  5. CEOTom Blake
    Approved1 month ago
Total cost$425,000
Spent to date$32,0008% of budget
Forecast remaining$393,000
Annual benefit$285,000

Problem

Utility audit flagged ~$285k/yr in recoverable energy spend across lighting, HVAC, and steam systems.

Proposed solution

Combined efficiency retrofit with performance-contracting structure; payback under 18 months.

Justification

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Alternatives

OptionDescriptionTotal costUseful lifeRecommended
Option 1 — RecommendedCombined efficiency retrofit with performance-contracting structure; payback under 18 months.$425,00012 yrs
Option 2 — Rebuild in placeRebuild existing equipment in place with refurbished components. Lower upfront cost but shorter useful life and higher maintenance ongoing.$276,2508 yrs

Payback & benefit

Simple payback14 months
5-yr NPV$812,672
IRR60.8%

Actuals (from ERP)

Sourced from the financial system integration. Last sync 2 hours ago.

4 transactions · $32,000
DateVendorDescriptionAmount
Apr 16, 2026Peerless MfgFinal invoice$6,826
Nov 30, 2025Applied Industrial TechnologiesVendor down payment / mobilization$8,560
Nov 29, 2025WW GraingerProgress billing$8,438
Nov 28, 2025Kice IndustriesProgress billing$8,176

Attachments

  • vendor-quote.pdf(245 KB)
  • site-photo.jpg(1820 KB)

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