$1.5M/yr

Potential Energy Cost Savings

38%

Potential EUI Reduction

Case Study

$1.5M/yr

Energy Cost Savings

38%

EUI Reduction

ENGINEERING, REAL ESTATE

Compound Value Ladder at Henry Ford

An Implementable Roadmap For Infrastructure Modernization, Where One Phase Funds The Next


As part of our Decarbonization and Resilience Cohort, Oakwell partnered with leaders at Henry Ford Wyandotte Hospital to develop a 25-year Compound Value Ladder — a phased roadmap designed to treat energy efficiency, infrastructure renewal, emissions reduction, and incentive alignment as one coordinated system.

The approach began with a detailed assessment of existing conditions, energy consumption, infrastructure lifecycle needs, operational priorities, and capital constraints. From there, Oakwell organized 18 Energy Conservation Measures (ECMs) into a disciplined sequence based on ROI, deferred-maintenance needs, carbon-reduction potential, incentive aligned implementation timing, and long-term campus value. 

The strategy was simple yet elegant and financially disciplined: capture the highest-return, quickest-payback opportunities first, then allow the savings they generate to help fund each successive phase of modernization.

For Henry Ford, that meant identifying 6 high-ROI measures with a combined simple payback of less than 2 years, capable of generating approximately $1.5 million in annual energy cost savings and reducing EUI by 38%. Over the full 25-year roadmap, the Compound Value Ladder showed a path to $58 million in energy cost savings, a 64% reduction in GHG emissions, and a 77% reduction in EUI — transforming campus infrastructure modernization from a list of siloed projects into an implementable sequence for compounding financial, operational, and environmental value over time.