Project Green District Energy Feasibility Study - Partners in Project ...

TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012
Executive Summary
Overview of District Energy
District energy is the distribution of thermal energy using a pipeline distribution system that can
deliver heating or cooling to buildings connected to the system. The central thermal plants may
use various types of fuel including natural gas, oil or renewable energy, with heat being
generated either as a purchased fuel or as waste heat.
The economic viability of district energy system relates closely to the energy density of the
thermal customers being served, as the system in effect replaces the functions provided by
furnaces, air conditioners, boilers and chillers in the individual buildings.
Background and Scope of Study
One of the priorities identified in the Partners in Project Green Strategy was the development of
a District Energy System (DES) in the Pearson Eco-Business Zone - the commercial and
industrial area surrounding the Toronto Pearson International Airport. The strategy
recommended engaging one or all three of the energy generating facilities around Toronto
Pearson to determine the feasibility of them providing heating and/or cooling to a district energy
system that could feed local buildings. The three facilities are Greater Toronto Airports
Authority’s (GTAA) Central Utilities Plant (CUP) 1
(117 MW), TransAlta Mississauga
Cogeneration Plant (108 MW), and the Magellan Aerospace Cogeneration Facility (2.5 MW).
Given that the owners or operators of each of these facilities indicated that their plant cannot be
relied on to serve as an energy source for the envisioned DES, this feasibility study analyzes a
DES business model that is based on construction of a new Energy Centre on a vacant parcel
of land on Elmbank Road. It also examines the economic and regulatory conditions that would
be necessary to make thermal energy supply from the GTAA’s CUP facility feasible.
Specifically, this feasibility study focuses on answering the following two questions:
1. What is the feasibility of developing a district energy system fed by a new central thermal
plant to provide heating to buildings within the vicinity of Toronto Pearson?
2. What are the economic and regulatory conditions that could make running GTAA’s
Central Heating Plant (CHP) economical as a source to provide heat for a district energy
system in the Pearson Eco-Business Zone?
Results
The results of this feasibility study found that there is potential to develop a district energy
system in the vicinity of Toronto Pearson, beginning with 11 potential facilities near Highway
427 and Airport Road. There is significant thermal energy consumption and moderate density
from the local hotels that would make up the majority of the customers. However, the major
challenge in the area is that it is a retrofit environment which makes attracting customers to the
system much more challenging.
1 Consists of boilers and a Central Heating Plant
ES-i