District energy an option for eco-business zone

Pearson Eco-Business Zone District Energy Feasibility Study

Toronto and Region Conservation Authority and the Region of Peel studied whether a district energy system was feasible for buildings near Toronto Pearson International Airport. The idea was part of a strategy to create an eco-business zone.

A study team identified 11 buildings as potential customers for a district energy system, in which locally generated heat is shared among buildings. The buildings, many of which are hotels, have a total thermal load of 13,625 kilowatts, enough to make a district energy system effective in saving energy.

The estimated installation cost, including a central combined heat and power plant and 3.1 kilometres of piping, was $28.2 million. The next step was to look for private- or public-sector development partners for a district energy system.

Results

Challenges

• Gaining access to buildings and building managers to properly evaluate the feasibility of a district energy system.
• Educating local business owners on the benefits of a district energy system.
• Establishing a financial model when natural gas prices can be volatile.

Lessons learned

• Establish contacts with building managers before launching the feasibility study.
• Form an advisory panel of private and public stakeholders with expertise on district energy systems.
• Have a champion from the municipality, because public endorsement of the project encourages potential customers.

Resources

• Partners in Project Green
• FBV Energy

Partners and Collaborators

• Toronto and Region Conservation Authority
• FCM's Green Municipal Fund
• Regional Municipality of Peel
• Greater Toronto Airports Authority

Project Contact

Dennis Braun
Project Manager
Toronto and Region Conservation Authority
T. 416-661-6600, ext. 5594