Infrastructre Bank investing in BC district energy plant
A memorandum of understanding has been signed with Lulu Island Energy Company to develop a new district energy project in Richmond, B.C.
The Canada Infrastructure Bank (CIB) has made its first commitment on the west coast with the signing of a memorandum of understanding (MOU) formalizing a collaboration with the Lulu Island Energy Company to develop a new district energy project in Richmond, B.C.
Lulu Island Energy Co., wholly-owned by the City of Richmond, was established to implement and operate district energy utility systems across theLower Mainland city.
The City of Richmond has implemented three district energy utilities (DEU): Alexandra, Oval Village, and City Centre. The new project involves expanding the City’s current district energy systems from 3.6 million sq. ft. (330,000 sq. m.) to more than 50 million sq. ft. (4.7 million sq. m.) over time, conditional to approval by Richmond City Council.
The MOU confirms CIB and Lulu Island Energy Company will conduct further due diligence and financial structuring work regarding a potential new district energy system concession agreement with Corix Utilities, a leading provider of sustainable energy and environmental management solutions across Canada and the U.S.
Lulu Island Energy Company and Corix Utilities are currently developing the Oval Village District Energy system, where Corix is responsible for the design, construction, financing, operations and maintenance of the system, while the City of Richmond is regulating and setting rates for customers.
CIB’s work could lead to an investment in the project, subject to all standard due diligence and decision making.
The City of Richmond’s official plan calls for higher density and mixed use buildings in future residential and commercial development. As a result, the City will benefit from low carbon energy sources on an expedited basis that would provide heating and cooling to buildings in the region. Lulu Island Energy Company’s district energy system design will incorporate zero-carbon sewer heat recovery technology to extract heat from the local sewer force main once the system is fully built out.