Reducing carbon intensity with a district energy system in New Westminster

Type of initiative FCM Green Municipal Fund - Plans, Studies, Pilots
Sector Energy
Project value$165,000
Project Type Feasibility Study
Sub Sector District Energy – Waste energy recovery
Grant amount$82,500
Program type GMF
Municipality City of New Westminster, BC
Status Fully Disbursed
Population 78,916
Project timeline 2020 - 2021
Project number 16903

Description

The City of New Westminster will complete a feasibility study on the proposed Sapperton District Energy System (SDES). The SDES will use sewer heat recovery to reduce the carbon intensity of two of the largest development projects in the city: the Royal Columbian Hospital expansion and the nearby Sapperton Green, a 38-acre mixed-use development. The SDES central energy plant will be located on a brownfield site adjacent to the Royal Columbian Hospital. This site has a major Vancouver sewer running through it, which will provide the primary energy source for the SDES. This initiative is strongly supported by the city’s Community Energy and Emissions Plan (2011), Envision 2032 Framework (2013), Official Community Plan (2017), and Environmental Strategy and Action Plan (2018). All of these identify district energy as a key strategy for reducing community greenhouse gas (GHG) emissions, encourage new developments to integrate with district energy systems, and endorse finalizing the SDES business case.

The SDES is anticipated to reduce annual GHG emissions by 6,000 to 10,000 tCO2e and building energy use by 46% (29% at the Royal Columbian Hospital and 70% at Sapperton Green). Other environmental benefits include reduced air contaminant emissions, water re-use and brownfield site remediation. Community benefits include local economic stimulation through the introduction of a large construction project and district energy system operation, increased municipal revenue with the establishment of a city-owned utility, community revitalization along the Brunette River, and the provision of a clean, reliable energy source to residents.

The city has conducted earlier studies on the technical aspects of the project. This study seeks to finalize the conceptual design; establish a base case for comparing financial, social and environmental performance; conduct a risk assessment and value-for-money analysis on the project delivery methods; and recommend a preferred delivery solution to city council (e.g., traditional design-build, concession agreement or design-build-finance-operate-maintain). When the study is complete, the city expects to partner with a private utility to deliver the project and operate the SDES over the long term. The city has contracted KWL Consulting Engineers to conduct the feasibility study and MMK Consulting to evaluate the delivery and ownership models. It will also consult with key project stakeholders, including Metro Vancouver, the Royal Columbian Hospital and Sapperton Green developers.

Innovative aspect(s):

  • Sewer heat recovery is a relatively new technology
  • The study will explore multiple project delivery approaches that could provide valuable insights to other municipalities

Replicability:

This study and subsequent SDES could be replicated by municipalities across Canada where significant sewer heat recovery is possible. Moreover, the delivery method, once finalized, could by adopted by municipalities unable to fund district energy system projects on their own.

Project results

Lessons learned

  • Project planning and parameters
  • Stakeholder and community engagement
  • Council support/buy-in
  • Project team and partners

Applicant

City of New Westminster, BC

Download the project's final report

16903.pdf