Coming in from the cold

Insulation manufacturers touted their products’ energy-saving attributes long before green building materials carved a niche in the construction industry. But as green building products garner increased attention from both venture capitalists and consumers, insulation companies are facing tougher questions about the overall sustainability of their products.

The insulation industry, by saving building owners money through energy savings and helping increase their comfort, has for a long time fared well in the marketplace. Insulation products have seen a 4 percent compounded annual growth rate in the past decade, and represent a $9.2 billion market, according to the National Insulation Association. The rising cost of oil, increased awareness of climate change and industry-led initiatives such as the 2030 Challenge in recent years led analysts to predict continued industry growth of 5 to 8 percent in the next decade.

But as programs such as the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) program establish a stronger foothold in the U.S. construction industry, many insulation manufacturers are being asked to prove they do more than just save energy.

Types of foam insulation made from extruded polystyrene (XPS) and expanded polystyrene (EPS) are one of the most common, and most controversial, types of insulation.

“Most insulation products are tied to the petroleum industry,” says Clark Brockman, LEED Accredited Professional (AP) and architect at Portland-based SERA Architects, referring to such foam insulation. “We have to decipher between bad and less bad.” The U.S. Environmental Protection Agency (EPA) has defined polystyrene as a possible carcinogen. And fiberglass, the most common and widely available type of insulation material, contains phenol formaldehyde, which has been classified as a known carcinogen by the State of California and the World Health Organization.

Owens Corning (NYSE: OC), one of the world’s largest insulation manufacturers with reported 2006 sales of $6.5 billion, has received widespread opposition from customers for its use of ozone-depleting chemicals in its process for manufacturing EPS rigid foam insulation. The Toledo, Ohio–based company was forced to revamp its formula for rigid foam insulation to appease residents in Gresham, Ore., where it is plotting a 50,000-square-foot plant.

While EPA ruled manufacturers must phase out the use of HCFC 142-B, an ozone-depleting hydrochlorofluorocarbon blowing agent, by 2010, Owens Corning planned to use the chemical in the manufacturing process for its foam insulation. The company revoked its original permit with the Oregon Department of Environmental Protection in 2006, resubmitting a new permit in late 2007 that includes plans to use an alternative blowing agent at the plant.

“We’ll have an opportunity to test drive it in Gresham before converting all of our other plants,” says Gale Tedhams, Owens Corning’s director of sustainability. The company is working with Portland-based GBD Architects to attain LEED certification for the manufacturing facility, and plans to purchase renewable energy to power the manufacturing plant, Tedhams says.

Growing concern among consumers led Ownes Corning to phase out use of an ozone-depleting chemical in its factories.

Mounting concern over the environmental impact of insulation products, coupled with the growth of LEED, in the past decade led most companies to increase the amount of recycled materials in their product. In 2005, Owens Corning teamed with Oakland, Calif.–based Scientific Certification Systems in 2005 to verify its PINK fiberglass insulation products contain a minimum of 30 percent recycled glass content [see “Owens Corning puts more green in PINK,” SI, May 2005].

Scientific Certification Systems has certified two other Owens Corning products for recycled content—a roofing material, and Foamular, the material Owens Corning says it plans to manufacture in Gresham. Products certified by Scientific Certification Systems containing a certain percentage of either pre-consumer or postconsumer recycled material can earn a LEED Materials and Resource point. In 2007, Johns Manville Corp., a Berkshire Hathaway company (NYSE: BRK-A), became the second big insulation company to receive SCS certification for its fiberglass Climate Pro insulation.

One segment of the insulation market poised to take off, according to many venture capitalists, including San Francisco–based firm Nth Power, is insulated concrete forms (ICFs). “We see the ICF market as something that could be very huge,” Nth Power’s Bryant Tong told Sustainable Industries in December, adding that stricter building codes across the United States support his prediction [see “8 for 2008,” SI, January 2008].

“When you look at the life-cycle analysis of a building, at least 75 percent is operating energy,” says Vera Novak, technical services manager for the ICF Association and a LEED AP. “From that perspective, the most important thing this product does is save operating energy.”

ICF systems are replacing traditional wood or steel framing in both residential and commercial construction at a rapidly increasing rate. ICF construction represented 7.4 percent of new homes built in 2007, which is about a 20 percent increase over 2006, according to the ICF Association.

Citing the growing number of homes being built with ICFs, the National Association of Homebuilders in March 2007 founded the Concrete Home Building Council to help promote ICFs and educate builders on how to use them. Many companies market ICFs as a green building material due to their recycled content and thermal performance. But a closer look at the life-cycle analysis, including the energy used to manufacture ICFs, the ability to recycle them and other technical aspects of their performance, leads some practitioners to look for alternatives.

Most ICFs are interlockable blocks made of EPS or XPS foam insulation, which, once in place, are filled with concrete. The R-values (a measurement used to express the rate that heat energy is transferred through a material) of ICFs vary greatly, with most manufacturers claiming an R-value of about 20 and some claiming R-values up to 50. ICFs’ energy effectiveness result from reduced air infiltration, higher insulation quality and thermal mass moderation, and from allowing architects to reduce the size of HVAC systems.

Many manufacturers tout additional benefits of ICF construction, including noise reduction, durability in high winds and earthquakes, mold resistance and termite resistance. And because the forms can be delivered straight to a job site, construction time can be significantly reduced. Novak of the ICF Association says ICFs are finally taking off, after carrying a stigma for many years. “For a long time, people asked ‘How could this white, clean-looking foam thing in any way, shape or form be as sustainable as recycled blue jeans?’” she says, referring to other insulation products on the market.

More info... National Insulation Association www.insulation.org Member-based insulation industry association; publishes Insulation Outlook magazine ICF Association www.forms.org Member-based industry association that provides technical information, standards and practices, case studies and more Concrete Home Building Council www.nahb.org/concrete National Association of Homebuilders’ source for cement building materials ICF Builder magazine www.icfmag.com News and information about the ICF industry and construction Pharos Wiki www.pharosproject.net/wiki Peer-reviewed Web-based tool to help inform building professionals and consumers about building products

But the stigma is beginning to dissolve, she says. In December, Emmy Award-winning “Extreme Makeover: Home Edition,” which this season demonstrates a new green building material in every episode, featured a Vermont home that was built in a week using ICFs made by BuildBlock Building Systems out of Oklahoma City. Also in December, Albuquerque, N.M.–based American PolySteel announced it had received a Silver-level certification from Cradle to Cradle, a third-party certification program that assesses a product’s impact throughout its life cycle. Developed by William McDonough and Dr.

Michael Braungart, the program looks at a product’s materials, design for material reutilization, use of renewable energy and energy efficiency, efficient use of water, and the manufacture’s overall commitment to social responsibility.

Launched in 2005, Cradle to Cradle has certified about 100 products ranging from baby diapers to window shades. In 2007, USGBC began awarding a LEED Innovation in Design point to projects that include Cradle to Cradle–certified products.

But when you look at the fine print, USGBC awards only half an Innovation and Design point for Certified- and Silver-rated Cradle-to-Cradle products; it gives a full point to projects that integrate Gold- or Platinum-rated Cradle-to-Cradle products. At press time, fewer than a dozen products had received a Gold rating. “Companies that get Certified and Silver ratings are saying, ‘we know we have problems, but we’re working to get better,’” says Eden Brukman, a LEED AP and research director for Cascadia Green Building Council’s Pharos Project and Living Building Challenge. “USGBC does not communicate why you only get half the point.”

Brukman says when comparing the environmental impact of ICFs on the market, those made of wood waste are the best option. “If you can use wood waste and still get a decent R-value, why introduce chemicals and toxins?” She, along with Brockman from SERA Architects, says Durisol, which makes ICFs out of 80 percent recycled wood from post-industrial sources that would otherwise be destined for a landfill, rises to the top. Durisol International Corp., an Ontario, Canada–based company with 15manufacturing plants worldwide, combines wood waste with Portland Cement and mineral wool insulation to create wall forms. Durisol blocks come in many sizes with reported R-values ranging from 8 to 20. The company also figured out how to remove the sugars from the wood chips, which helps keep out termites and other pests.

With about 30 percent annual growth in U.S. sales since 2001, the company is eyeing Portland as the site of its first U.S. distribution center, says Durisol CEO Vipul V. Acharya. He notes the growth of the U.S. green building industry has helped boost sales in the States, but in other parts of the world where the product has already penetrated the market, Durisol’s performance is what matters most to customers. “Customers were interested in increased performance and energy efficiency,” he says. “The fact that we used recycled wood was almost an afterthought, but it’s become more of a motivator of sales in recent years.”

Durisol turns wood waste into building blocks for high-performance buildings

Durisol customers pay a premium for the blocks: The cost per square foot for Durisol ICFs, including shipping, is about $7 compared to $4 for foam ICFs, Acharya says. West Coast builders now have a second, closer-to-home option. Corvallis, Ore.–based ShelterWorks in February 2007 became a licensee for Faswall, a wood-based ICF company based in South Carolina. Faswall forms are made from 85 percent recycled wood chips and 15 percent Portland cement. ShelterWorks can replace 3 percent of the cement with fly ash. ShelterWorks bought Faswall in January. The company’s co-founder Paul Wood says most orders come from the Northwest, but the company will ship the forms anywhere.

“I’m starting to use Faswall, mainly because it’s being produced in Corvallis,” says Nathan Good, a Salem, Ore.–based architect who says a third of his projects incorporate ICFs. He notes the prices of Durisol and Faswall are similar, but the carbon reduction of sourcing ICFs locally is huge. “It’s great to have a product like that in the Northwest.” Good says he thinks ICFs are “overkill” in Oregon’s Willamette Valley and regions where the climate is fairly mild, noting they are better suited for projects along the windy Oregon coast and in places such as New Orleans.

Typically, contractors have not been able to order ICFs at building supply centers such as Home Depot (NYSE: HD) or Lowe’s (NYSE: LOW). They usually have to contact ICF manufacturers directly, and with oil prices rising, shipping costs could become a bigger factor when it comes to choosing ICF products. Fold-Form, Owens Corning’s ICF block, is an 8-inch block comprising 2 inches of foam on each side. It’s the only foam ICF on the market that folds, which allows the company to ship more forms per truck than its competitors, according to Jeff Van Sloun, Owens Corning’s business manager for ICFs.

Owens Corning, which targets small home builders and remodelers, has placed Fold-Form in select Home Depot and Lowe’s stores as well as Menards, a privately held company with stores throughout the Midwest. With more than 2,000 stores throughout the United States, Home Depot is helping boost green building materials and energy-efficient products through its Eco Options label. While the company’s sales dipped in the 4th quarter of 2007, products with the Eco Options label fared well, according to Ron Jarvis, Home Depot’s senior vice president of environmental innovation.

Brockman of SERA Architects says he hopes venture capitalists eyeing the ICF industry consider the hidden costs of petroleum-based products. “Many people equate energy efficiency with reducing climate change,” Brockman says. “We could build a lot of houses with typical ICFs and we’d save a lot of energy, but we need to ask, ‘are they green products?’”

Concrete, thanks to its high thermal mass and subsequent energy savings, along with its recyclability, will likely remain a popular building material for years to come. But just as consumers pushed the insulation industry to increase the recycled content of their products, leading practitioners in the green building sector will likely continue to push for more innovative construction materials.

“We need a cost-effective way to build concrete walls,” Brockman says. “But we have to look for alternatives.”