Exploring the Feasibility of District Energy in the Town of Oakville

The Town of Oakville (Town) is seeking GMF support towards the development of a district energy (DE) feasibility study for a DE concept site in the municipality of Oakville. In partnership with the Consulate of Denmark, the Town has recently completed a prefeasibility study to identify and create DE concepts for two catalyst sites that would enable large-scale DE adoption in Oakville. A cross departmental team from within the Town and Halton Region led efforts to ensure that the prefeasibility study integrated planning, engineering, business, and the Town’s Community Energy Strategy (CES) and climate goals. The work was contracted to Rathco ENG Ltd. (Rathco), an experienced DE consultant. For project continuity and cost saving reasons, the Town intends to issue a second contract to Rathco to complete a full, detailed feasibility study that will focus on one of the two sites, the Hospital District - one of Oakville’s near-term development sites with a diverse mix of building types, contiguous development building parcels and ideally suited for a DE system. 
The pre-feasibility study examined various DE concepts and recommended an ambient DE system at the hospital site using hybrid geothermal (closed loop geo-exchange) & sewer energy exchange as thermal energy sources and sinks for this project. Other concepts were examined and compared to the baseline case.
1.    Baseline Case: Conventional Natural Gas Boilers & Fluid Coolers. 
2.    Alternative energy supply options assessed:
a)    Natural Gas Combined Heat & Power (CHP) & Chillers DES (Reference Case) 
b)    Geo-Exchange DES 
c)    Hybrid Geothermal & Sewer Energy Exchange DES 
d)    Air-Source Heat Pumps (ASHP) DES 
Based on predetermined concept assessment criteria, the pre-feasibility study found that the hybrid geothermal and sewer energy exchange concept provide the lowest overall emissions and highest internal rate of return. 
Detailed Feasibility Study Objective: to conduct a deeper analysis of the recommended DE concept at the Hospital District site and move the project towards approval and implementation. 
Implementing a DE system at this site will:
•    Advance the use of DE in new and existing development sites in Oakville 
•    Help achieve the goals of the Town’s CES 
•    Provide a significant opportunity to expand to new densification areas, including a potentially diverse mix of building types (office, retail, residential, municipal), 
•    Encourage coordination between the hospital, municipal/regional connections, and planned large-scale developments that could be potential partners - the Town has already begun identifying partnerships. 

Proposed general scope of work: 
•    Confirm prefeasibility study outcomes & metrics of success 
•    Conduct a deeper technical feasibility of the Hybrid Geothermal & Sewer Energy Exchange DES concept including the DE distribution system 
•    Outline a phased approach to encourage greater community uptake and work towards the Town’s CES objective of supplying DE heating & cooling in 80% of existing & future high-density areas
•    Engage local stakeholders: developers, utilities, property owners, Halton Region, & others
•    Develop a preferred governance framework 
•    Conduct market research, including identifying planning by-laws, development policy and incentives that have proven to help encourage developers to adopt & invest in DE 
•    Examine the common barriers associated with planning, development approvals, and make recommendations to overcome 
Community Benefits: 
•    Advance DE in Oakville: stimulate investment, support local economy, build local resource capacity 
•    Create industry and market momentum with Innovative technology that will lead to greater DE penetration 
•    Reduce community energy costs and increase energy resilience
•    Engage community in long-term energy solutions to support sustainability 
Key metrics of success include: 
•    Reduced GHG emissions 
•    Shift away from fossil fuel use at the site 
•    Increased ability