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New Power Generating Facility Planned for Guelph

Web posted on April 10, 2014

GUELPH, ON, April 10, 2014 A combined heat and power (CHP or cogeneration) facility planned for Guelph's Hanlon Creek Business Park will play an important role in meeting the city's future energy needs while reducing the environmental impact of power generation.

As part of its award-winning Community Energy Initiative, Guelph hopes to use cogeneration systems to provide at least 30 per cent of the city's anticipated total electricity requirementsabout 100 megawattsby the year 2031.

"Combined heat and power facilities offer tremendous economic and environmental benefits to direct users of the system, the local community and society as a whole." Barry Chuddy, Chief Executive Officer, Guelph Hydro Inc.

Smaller, local energy systems, including cogeneration systems, directly address a number of our community's prioritiesincreasing energy efficiency, reducing greenhouse gas emissions, strengthening the resiliency of the City's energy infrastructure, improving energy security, growing the local economy, and improving the competitiveness of local industries.

Guelph Municipal Holdings Inc., representing the City of Guelph as shareholder to Guelph Hydro Inc. and its affiliates, is providing leadership in doing business differently by aligning the City's strategic objectives with the project work of Envida Community Energy.

Over the next two years, Envida Community Energy Inc., a subsidiary of Guelph Hydro Inc., will build the Hanlon Creek Business Park Combined Heat and Power facility that will improve the resiliency of the city's electricity distribution system, contribute to reduced energy costs for Hanlon Creek businesses, and improve the City's ability to attract new businesses in Guelph.

"I firmly believe that smart energy planning, as demonstrated by the development of a combined heat and power and district energy system in the Hanlon Creek Business Park, must be the foundation on which we build Guelph's future economic growth." Lloyd Longfield, President and CEO, Guelph Chamber of Commerce.

The highly efficient, natural gas-fired CHP facility has the capacity to generate 10.2 megawatts of electricityabout four per cent of the entire city's average demand for electricity.

The electricity will be fed into the provincial grid under a 20-year contract with the Ontario Power Authority (OPA), granted under Ontario's Combined Heat and Power Standard Offer Program. Ontario's Minister of Energy Bob Chiarelli, who was in Guelph earlier today promoting local energy projects, announced the OPA contract.

Typically, generating electricity at a large-scale power plant creates a lot of heat, and this heat goes to waste. However, with a CHP facility, such as the one planned for the Hanlon Creek Business Park, waste heat is captured and used to heat water.

Using waste heat for a building's hot water or space heating lowers fuel and equipment costs, reduces space requirements, lowers building and maintenance costs, and reduces greenhouse gas emissions. The Hanlon Creek district energy system will distribute the hot and chilled water for heating, cooling, and hot water through an underground network of pipes to buildings in the business park.

Currently, temporary district energy systems operating in the business park provide heating and cooling to the buildings owned by Fusion Homes and Wrth Canada Limited. Once the CHP facility is constructed, the companies and other Hanlon Creek businesses will be supplied from the new facility.

By simultaneously generating electricity and thermal energy from one fuel source, the facility is expected to result in efficiencies up to or greater than 80 per cent; this is substantially greater than the 30 to 45 per cent efficiencies achieved in conventional electricity generation facilities.

Envida's first CHP facility is expected to be operational by the end of 2016.