Program FCM opens in a new tab

Summary 

Energy use for heating and cooling is a major contributor to greenhouse gas emissions. As such, it presents a clear opportunity for municipalities to reduce their carbon footprints. New Westminster, B.C., has long recognized that building a district energy system to recover heat from wastewater would be a major step to help them reach their ambitious climate goals. Their newest feasibility study outlines a business case for the Sapperton District Energy System and a plan to make it a reality. 

Background 

New Westminster is a city of about 70,000 people in British Columbia’s Lower Mainland, along the Fraser River.   

In 2011, the city published its Community Energy and Emissions Plan and identified a district energy system as an opportunity that could both help the city decarbonize and provide residents with energy resiliency and affordability. Then, in 2019, city council declared a climate emergency. This declaration included ambitious new greenhouse gas reduction targets of 45 percent by 2030, 65 percent by 2040, and 100 percent by 2050.  

Now called the Sapperton District Energy System (SDES), the project would use heat recovered from wastewater from the sewer system to provide heating and cooling and thus reduce demand for natural gas. The system’s primary customers are likely to be:  

  • The nearby Royal Columbian Hospital, which is currently under expansion 
  • New mixed use development project Sapperton Green, which will include 4,700 residential units as well as retail, commercial and community space
Diagram of how a district energy system moves heat energy from a central facility to nearby buildings via a network of closed-loop pipes. 

District energy system moves heat energy from a central facility to nearby buildings via a network of closed-loop pipes. 

The challenge 

With its new emissions reduction targets in place, New Westminster was ready to make the SDES a reality. While the technical aspects of the project were well understood thanks to previous studies, staff were not yet clear on how to fund and, ultimately, deliver the SDES. The next step was to answer any outstanding questions by completing a new feasibility study and business case. The overall objective was to confirm that this project would work for the city, and to figure out how best to make it happen. 

Approach 

With approvals in place, New Westminster was able to move forward on its new feasibility study. Study components included: 

  • A reworked engineering design to ensure plans were up to date 
  • A project cost estimate 
  • Engagement with stakeholders to understand and incorporate their needs 
  • A business case analysis, including potential integration of a private sector partner  
  • Recommendations for project scope and delivery 
  • Assessing and optimizing the project’s social, economic and environmental performance 

Results 

Study authors recommended a phased approach to building the system, beginning with a temporary energy centre at Sapperton Green to be completed in 2023, followed by connection to the hospital in 2025 and then further expansion in 2027 and beyond. They also mentioned that working with partners will be essential to success; this includes:  

  • Cooperating with Metro Vancouver to secure funding and carbon credit exchange agreements, and to develop the sewer heat resource 
  • Confirming service agreements with primary customers—Fraser Health Authority and the Sapperton Green developer—in advance of the design phase 

Benefits 

The new study confirmed that the SDES would have a large impact on New Westminster’s carbon footprint, as well as providing numerous environmental and community benefits. For example:  

  • It will be placed on a brownfield site, and therefore will be a catalyst to development of this area, including environmental restoration of the Brunette River shoreline. 
  • It has the potential to improve public space and offer better accessibility and public transportation to the community, such as a Skytrain elevator and crosswalk and a greenway extension. 
  • It includes several resiliency measures intended to help the community cope better after natural disasters. 
  • It could provide a savings of up to 120,000 tonnes of carbon dioxide equivalent over 25 years, for a 30 to 40 percent reduction in greenhouse gas emissions. 
Diagram of how the Sapperton District Energy Facility will recover heat from sewage and transfer it to connected buildings. 

The Sapperton District Energy Facility will recover heat from sewage and transfer it to connected buildings.

Lessons learned 

The feasibility study produced an updated business case that filled in knowledge gaps and was valuable in moving the project forward. By engaging stakeholders throughout the process, the project team also ensured their input was included and got their buy-in on the final report. 

Staff also recommend structuring these kinds of projects so that detailed information is available when needed, rather than moving forward with incomplete data. While extended timelines can feel like an unnecessary delay, in cases where there is a good reason for them, they may actually result in a better report and business case. 

Next steps 

In March 2022, Metro Vancouver and the City of New Westminster announced a partnership to build the SDES, with an investment from Metro Vancouver of up to $18 million. In addition, the following work is in progress: 

  • Developing agreements with Metro Vancouver for sewage and connection to the sewer trunk 
  • Developing a service agreement with the Fraser Health Authority 
  • Discussing grant funding opportunities with provincial and federal entities 
  • Performing investigations at the newly acquired project site 

New Westminster City Council is also working on a new District Energy Bylaw that will move the project into action.  

Want to explore all GMF-funded projects? Check out the Projects Database for a complete overview of funded projects and get inspired by municipalities of all sizes, across Canada. 

Visit the projects database

Related Resources

See All
Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

Aspen Heights: Redefining affordable housing in Saskatoon

Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

Heartland Housing Foundation: Building a sustainable future in Fort Saskatchewan

Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

Building a better future: CABN’s net-zero affordable housing pilot

Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

Pine Tree Park: Transforming affordable housing with energy efficiency and solar power

Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

Rossland Yards: Transforming affordable housing in Rossland, BC

Tool
Sustainable affordable housing Sustainable affordable housing
energy Energy

Transforming communities with Sustainable Affordable Housing: Article series

In a series of six articles, we highlight impactful projects funded by GMF's Sustainable Affordable Housing (SAH) initiative, demonstrating how energy-efficient, community-centered housing can foster resilience and well-being.

Case Study
Sustainable affordable housing Sustainable affordable housing
energy | housing Energy | Housing

YWCA Banff: Building stability and community through affordable housing

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Guide: Equity and non-energy benefits of community building retrofits

Explore the equity and other non-energy benefits of retrofitting community buildings.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar recording: Accelerate your community’s net-zero transformation with new GMF funding

Watch our webinar to discover how GMF’s new funding can help you upgrade infrastructure and reduce local GHG emissions.

Webinar recording
Community efficiency financing Community efficiency financing
energy Energy

Webinar recording: The real impact of home-energy efficiency financing

Watch our webinar to discover how you can achieve your climate goals by implementing a home-energy efficiency financing program in your community

Webinar recording
Sustainable affordable housing Sustainable affordable housing
energy Energy

Webinar recording: Transform your approach to energy efficiency with the Housing Providers’ Toolkit

Watch the discussion on how to take advantage of the Housing Providers’ Toolkit.

Guide
Municipal and community buildings Municipal and community buildings
energy Energy

Guide: Taking your indoor swimming pool to net zero

A guide with key measures and lessons learned to help you build a plan for net-zero indoor swimming pools.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar recording: How to start reducing GHG emissions in community buildings

Watch the discussion on how to create a GHG reduction pathway for community buildings.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy | housing Energy | Housing

Webinar recording: How to get a project started, tips for small francophone communities

If you’re a small francophone municipality looking to develop sustainability projects and access funding, watch this webinar to learn how others overcame common challenges.

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Factsheets: Community Buildings Retrofit initiative

Learn how to retrofit existing community buildings to lower GHG emissions and extend their life cycle.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar Recording: Enhance comfort and energy savings with municipal building envelopes

Watch this webinar to explore strategies for optimizing municipal building envelopes, enhancing both comfort and energy efficiency.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar recording: Energy efficiency for reaching net zero

Learn how municipalities can advance energy efficiency initiatives to reach net-zero targets.

Webinar recording
energy Energy

Webinar recording: Planning for net-zero emissions

Municipal leaders and experts discuss strategies for achieving net-zero emissions targets and scaling up climate action efforts at the local level.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: Durham Region, ON launches novel financing model

A video showcasing innovative and accessible financing options for home-energy upgrades.

Video
Municipal and community buildings Municipal and community buildings
energy Energy

Video: Retrofitting community buildings for maximum GHG reduction impact

A short video explaining the pathway approach of retrofitting a building - using an outcomes-oriented approach - to achieve (near) net zero carbon buildings over time.

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Community Buildings Retrofit Advisory Service

The CBR Advisory Service is a new service that is intended to help smaller municipalities by matching them to industry leaders who understand best practices in the CBR field and can help provide personalized coaching and advice, including clarified goals, insights, and replicable results.

Guide
Community efficiency financing Community efficiency financing
energy Energy

Community Efficiency Financing market guide

Guide to help Canadian municipalities assess potential home energy upgrade programs

Webinar recording
Local energy generation Local energy generation
energy Energy

Webinar recording: An introduction to district energy

Learn how a centralized heating and cooling system can help your municipality reduce GHG emissions and save money.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar recording: Supporting small and medium municipalities through the Community Buildings Retrofit initiative

Watch this webinar recording to learn about successful examples of completed retrofits, how municipalities can choose the right funding options and to answer any questions about the funding process.

Guide
Municipal and community buildings Municipal and community buildings
energy Energy

Guide: Taking your indoor ice rink to net zero

A practical guide to get you started on your own net zero retrofit plan and to help you develop an actionable roadmap to net zero ice rinks.

Guide
Municipal fleet electrification Municipal fleet electrification
transportation Transportation

Priority Municipal Actions to Enable Zero Emission Vehicle Adoption

GMF and Low Carbon Cities Canada (LC3) collaborated to create six priority municipal actions to accelerate zero emission vehicle adoption.

Guide
Sustainable affordable housing Sustainable affordable housing
energy Energy

Understanding energy efficiency: A guide for affordable housing providers

This guide is for affordable housing providers, such as municipalities or housing cooperatives, interested in improving energy efficiency in their buildings.

Webinar recording
Municipal and community buildings Municipal and community buildings
energy Energy

Webinar: Transitioning ice rinks to net-zero

Learn the basics of building retrofits for facility buildings

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Resource library: Community Buildings Retrofit

Find practical case studies and guidance for planning your local community building retrofit.

Webinar recording
Community efficiency financing Community efficiency financing
energy Energy

Webinar recording: Introduction to local home-energy financing programs

Learn the basics on delivering local financing programs for home-energy upgrades.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: Saskatoon delivers Saskatchewan’s first local home-energy financing program

Learn how the City of Saskatoon designed its Home Energy Loan Program (HELP) to help residents retrofit their homes and reduce GHG emissions.

Tool
Community efficiency financing Community efficiency financing
energy Energy

Resources: Community Efficiency Financing

Read guidebooks and case studies to see how municipalities are designing home upgrade financing programs.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: Kingston supports homeowners with financing program for energy upgrades

Hear from Julie Salter-Keane, Manager of Climate Leadership at the City of Kingston, as she discusses the City’s program implementation and their approach to designing a strong local program.

Guide
energy Energy

Factsheet: Governance strategies for deep decarbonization

This factsheet provides senior municipal leaders with governance strategies for achieving deep emissions reductions in each decarbonization pathway.

Guide
energy Energy

Factsheet: Governance components for deep decarbonization

This factsheet introduces senior municipal leaders to key components of a good governance structure for deep emissions reductions and implementation actions.

Guide
energy Energy

Factsheet: Municipal governance for deep decarbonization

This factsheet provides senior municipal leaders with the pathways and steps for achieving deep decarbonization and net-zero emissions by 2050.

Tool
energy Energy

Climate Action Accelerator for Community Buildings

Is your municipality looking to drive climate action by reducing greenhouse gas emissions in municipally-owned buildings, but is unsure how to maximize time and impact, secure funding and partnerships, or how to get started? FCM’s Climate Action Accelerator for Community Buildings will help up to 20 small and mid-sized municipalities take climate action within their building portfolios.

Video
energy Energy

Video: Tips from Iqualuit’s LEED Silver aquatic centre

In this video, you will learn the key elements and lessons learned that helped Iqaluit succeed on building its energy efficient aquatic centre.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners

Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: Introduction to home energy upgrade programs

Watch this video to learn more about home energy upgrade programs and how they can help municipalities to tackle climate change, save money, and invest in the local economy.

Video
Community efficiency financing Community efficiency financing
energy Energy

Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners

Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.

Webinar recording
energy | housing Energy | Housing

Webinar recording: Take your project from study to capital

Watch this webinar recording and discover how others have successfully converted studies into a capital project that provides social, economic and environmental benefits.

Webinar recording
energy Energy

Webinar recording: How to adapt green municipal projects to stand the test of time

Watch this webinar recording and explore how to build and adapt projects to make them truly sustainable in the long term.

Webinar recording
energy Energy

Webinar recording: The 5 keys to a green municipal project business case

Watch this webinar recording and discover the five critical focus areas you need to address to get your project started, from financing and partnerships to integrating a triple-bottom-line approach.

Video
energy Energy

Introducing GMF’s Community Buildings Retrofit initiative

Discover how GMF can support your community building retrofits, from funding for energy monitoring, building commissioning, studies and capital projects to capacity-building activities and resources.

Report
energy Energy

Article series: Meet LC3’s climate leaders

Read our article series to get to know the leaders of the Low Carbon Cities Canada (LC3) network, and learn how they are advancing effective ways to address climate change in big cities.

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

GMF’s Municipal Energy Roadmap

Solutions for Canadian communities to achieve significant GHG emissions reductions in buildings and meet long-term sustainability objectives.

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Primer for elected officials: Municipal Energy Roadmap

This primer for elected officials outlines how the Municipal Energy Roadmap can help choose the right energy-related solutions for your buildings.

Tool
Sustainable affordable housing Sustainable affordable housing
energy Energy

Regional Energy Coaches

Regional Energy Coaches help affordable housing providers plan energy efficiency retrofits and new builds.

Tool
Municipal and community buildings Municipal and community buildings
energy Energy

Factsheets: Municipal Energy Roadmap

These factsheets offer specific guidance around building-level solutions, community-level solutions, and long-term strategies to help you drill down and meet your objectives.

Webinar recording
Community efficiency financing Community efficiency financing
energy Energy

Webinar recording: How to create an efficiency financing program for your community

An overview of the funding options, eligibility and application details of GMF’s Community Efficiency Financing program.

Tool
Community efficiency financing Community efficiency financing
energy Energy

Factsheets: Community Efficiency Financing

Learn how to design, deliver and market a home upgrade financing program for your community.

Webinar recording
energy | housing Energy | Housing

Webinar recordings: Best practices in municipal sustainability

How are cities and communities of all sizes tackling their environmental challenges? Find out from our five-part webinar series on innovations and opportunities in municipal energy, waste, water, transportation and land use initiatives.

Tool
energy Energy

Tool for municipal clean energy program development: Use the Energy Poverty and Equity Explorer to reduce energy poverty and greenhouse gases

The Energy Poverty and Equity Explorer tool, developed by Canadian Urban Sustainability Practitioners (CUSP), offers municipalities access to relevant data so they can better understand energy poverty, and other equity and affordability challenges in their communities.

Webinar recording
energy | housing Energy | Housing

Webinar recording: How to prepare a GMF capital project application

Need advice for preparing your GMF capital project funding application? Watch our webinar recording to hear tips from our staff and find out what reviewers are looking for.

Related Funding

See All

Accelerating community energy systems

See Funding Opportunity

Capital project: Construction of new sustainable municipal and community buildings

Available funding: Commission and construct a new high-efficiency municipal or community building.

See Funding Opportunity

Capital project: Retrofit of existing municipal buildings

Available funding: Retrofit a municipal building or portfolio of municipal buildings for higher energy performance and significant GHG emissions reduction.

See Funding Opportunity

Study: Retrofit pathway for municipal buildings

Available funding: Outline the design of a proposed retrofit of an existing municipal building or portfolio of existing municipal buildings.

See Funding Opportunity

Pilot: Net-Zero Transformation

Available funding: Evaluate innovative GHG reduction solutions in real-world conditions.

See Funding Opportunity

Capital project: Net-Zero Transformation

Available funding: Deploy a full scale best-in-class GHG reduction solution.

See Funding Opportunity

Business case: Organic Waste-to-Energy

Available funding: Assess viable waste-to-energy systems and business models for your project.

See Funding Opportunity

Study: Organic Waste-to-Energy

Available funding: Outline the design of a proposed organic waste-to-energy system.

See Funding Opportunity

Capital project: Organic Waste-to-Energy

Available funding: Construct, commission and begin operation of an organic waste-to-energy system.

See Funding Opportunity

Study: New construction of municipal and community buildings

Available funding: Outline the design of a proposed new high-efficiency municipal or community building.

See Funding Opportunity

Study: Net-Zero Transformation

Available funding: Assess new approaches and solutions to bring your community closer to net-zero.

See Funding Opportunity

Plan: Net-Zero Transformation

Available funding: Conduct integrated planning exercises to support the municipal transition to net zero.

See Funding Opportunity

Capital project: Community Energy Systems

Available funding: Construct, commission and rapidly deploy a community energy system.

See Funding Opportunity

Study: Community Energy Systems

Available funding: Outline the design of a proposed community energy system.

See Funding Opportunity

Business case: Community Energy Systems

Available funding: Assess viable community energy projects and their business models.

See Funding Opportunity

Study: GHG reduction pathway feasibility

 Determine the best approach to integrating energy and GHG reductions into longer-term management plans.

See Funding Opportunity

Capital project: GHG impact retrofit

Retrofit a building to achieve a minimum 30% reduction in GHG emissions; ideal for shovel-ready projects.

See Funding Opportunity

Capital project: GHG reduction pathway retrofit

Retrofit a building using an outcomes-oriented approach to achieving (near) net zero carbon buildings over time.

See Funding Opportunity

Study: Assess options for a local home-energy upgrade financing program

A feasibility study for an initiative that explores and assesses options for a financing program for home energy upgrades that can achieve triple-bottom-line benefits within your community.

See Funding Opportunity

Study: Evaluate an existing local home-energy upgrade financing program

A program evaluation that helps municipalities with existing financing programs for home-energy upgrades to assess the historical performance of those programs and identify opportunities to improve them.

See Funding Opportunity

Study: Design a local home-energy upgrade financing program

A feasibility study for an initiative that lays the groundwork for a home-energy upgrade financing program by documenting the details needed to obtain approval from your local government.

See Funding Opportunity

Pilot project: Local home-energy upgrade financing program

A pilot project for an initiative that supports implementation of a small-scale version of a local financing program for home energy upgrades.

See Funding Opportunity

Capital program: Loan or credit enhancement for local home-energy upgrade financing program

A capital project for an initiative that capializes a local financing program for home-energy upgrades.

See Funding Opportunity

Capital project: New construction of sustainable affordable housing

A capital project for an initiative that constructs new affordable housing projects to a higher environmental performance standard.

See Funding Opportunity

Capital project: Retrofit of sustainable affordable housing

A capital project for an initiative that supports the integration of leading-edge deep energy efficiency measures and onsite renewable energy generation in existing affordable housing retrofit and new build projects.

See Funding Opportunity

Pilot project: Retrofit or new construction of sustainable affordable housing

A pilot project for an initiative that supports the integration of leading-edge deep energy efficiency measures and onsite renewable energy generation in existing affordable housing retrofit and new build projects.

See Funding Opportunity

Study: Retrofit or new construction of sustainable affordable housing

A feasibility study for an initiative that supports the integration of leading-edge deep energy efficiency measures and onsite renewable energy generation in existing affordable housing retrofit and new build projects.

See Funding Opportunity

Planning: Early support grant for sustainable affordable housing projects

The development of deliverables required in pplications for additional funding (e.g., GMF’s Sustainable Affordable Housing (SAH) study grant or the Canada Mortgage and Housing Corporation’s (CMHC) Seed Funding program) as you progress through the next stages of energy-efficient affordable housing projects.

See Funding Opportunity