CIB, Enwave agree to $1.4B district energy projects for Toronto and Mississauga
The Canada Infrastructure Bank (CIB) and Enwave Energy Corporation have agreed to a long-term deal that will see the organizations commit a combined $1.4 to build district energy projects in Toronto and Mississauga.
The organizations made the announcement on November 3. The agreement sees CIB commit $600 million to the project. That funding will allow Enwave to accelerate and scale the build-out of its district energy systems.
“District energy projects align with our priority to invest in clean energy infrastructure which reduce greenhouse gas emissions,” said CIB CEO Ehren Cory. “As world leaders focus on global climate action, our innovative investment is a tremendous opportunity to make urban communities greener and more sustainable. The district energy projects will benefit those who live and work in Toronto and Mississauga for generations to come.”
A district energy system connects several buildings with differing energy profiles to a central energy source. By providing heating and cooling from a central plant, the system uses less fuel than discrete heating, cooling and hot water systems.
Indeed, district energy projects have been shown to reduce typical electricity consumption by up to 80 percent and carbon emissions by up to 60 percent.
Toronto's TransformTO climate action plan calls on district energy projects to reduce greenhouse emissions from city buildings. The City of Mississauga's Climate Change Action Plan also suggests district energy could be a key opportunity in its goal to become a low carbon and resilient community.
The CIB funding represents an opportunity for Enwave to deploy sustainable technologies, such as wastewater heat recovery and Geoexchange, in delivering community-scale low-carbon energy for new networks in Toronto and Mississauga.
The company will also expand and enhance the efficiency of its existing low carbon hot water district in Toronto, optimizing the base network. The projects will leverage Enwave's expertise and strengths in design, construction, operations, and maintenance of district energy networks.
The projects are expected to help reduce greenhouse gas emissions by more than 67,000 tonnes every year.
“This investment from the CIB will be the catalyst for accelerating impactful low carbon energy projects,” said Enwave CEO Carlyle Coutinho. “In collaboration with the City of Toronto and City of Mississauga, Enwave is committed to deploying advanced and innovative low carbon energy solutions at scale enabling a leap forward in the energy transition.”
The CIB aims to invest up to $5 billion into clean-energy projects that support Canadian sustainable economic growth.
Featured image: The Deep Lake Water Cooling system is attached to The Well development in Toronto, and offers a more flexible, sustainable alternative to conventional heating and cooling. (Enwave)