Markham District Energy (MDE) has announced the start of construction of its Low Carbon Energy Centre, the world’s largest wastewater energy transfer (WET) project.

“Today represents a milestone in our 25-year history,” said Bruce Ander, MDE President and CEO. “The WET project not only further positions MDE as a leader in innovative energy solutions and accelerates our path to becoming a net-zero district energy supplier, but is also a representation of the outcome when there is cooperation and strategic support from all levels of government.”

Once complete, the WET project, which will utilize the Region of York’s wastewater system, is expected to reduce MDE’s carbon emissions from the production of thermal energy by over 30,000 tonnes per year. Doing so, says MDE, will significantly contribute to the organization’s goal of becoming net-zero by 2050.

Deputy Prime Minister Chrystia Freeland was on hand at the ground-breaking ceremony on July 16.

“We are empowering homegrown innovators, like Markham District Energy, to turn their ideas into economic success stories,” she said. “By investing in cutting-edge technology, we are making energy more affordable – saving residents and businesses money on their energy bills – while also reducing emissions.”

MDE leveraged funding for the project from several programs offered by the federal government, including $16.7 million from the Low Carbon Economy Fund, $8.2 million from the Green Municipal Fund, and a $135 million loan facility from the Canada Infrastructure Bank combined with a $135 million facility with CIBC, to support the expansion of its district energy network and transition to net-zero emissions.

Enbridge Gas provided additional support in the form of over $700,000 from several demand side management and fuel switching grant programs.

MDE already delivers reliable, cost-efficient heating and cooling to over 15 million square feet across 240 buildings across its network. Through a system of underground pipes, energy is delivered to buildings in the form of hot water and chilled water to heat and cool building space.