B.C.’s largest natural gas provider has teamed up with the City of Kelowna to develop two district energy systems valued at $38 million.
District energy systems use a central plant to produce steam, hot water or chilled water that is piped into buildings for heating or cooling purposes.
According to an agreement in principle with Kelowna, Terasen Gas Inc. will own and operate the two systems, which will help the city reduce its energy use and lower greenhouse gas emissions.
“An integrated energy solution, such as a district energy system, allow us to incorporate alternative energy source, in this case, waste heat and water, to help ensure British Columbia meets its energy and environmental goals,” said Doug Stout, Terasen’s vice-president energy solutions and external relations.
The two systems will use waste heat and water from Kelowna’s wastewater treatment plant and from Sun Rype Products Ltd. to heat or cool buildings in the city.
The systems will be developed over the next decade, although both Terasen and Kelowna still need to negotiate a final agreement. That agreement is subject to approval from the B.C. Utilities Commission.
Kelowna said the systems have the potential to save 16,300 tonnes of carbon dioxide per year, which is the equivalent of removing 3,500 cars from the road every year.
In the past, Terasen has helped develop district energy systems for Whistler’s athlete’s village and Victoria’s Dockside Green residential development.