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Pearson Eco-Business Zone District Energy Feasibility Study

Aerial view of Toronto Pearson International Airport

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

Environmental Economic Social
  • Greenhouse gas emissions would be reduced by 3,600 tonnes per year
  • Air quality would be improved
  • Developers of the system would see an estimated 8% internal rate of return
  • With fewer maintenance costs, building owners' heating costs would remain about the same
  • Constructing the heat and power plant would create jobs locally

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 and Collaborators

Project Contact

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

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. 

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