Community energy system to be developed

March 29, 2005

Community energy system to be developed for Centre in the Park

Strathcona County is proceeding with the development of an innovative energy system to heat existing buildings as well as new buildings planned for construction in the Centre in the Park development in Sherwood Park.

The system will consist of an energy plant and network of underground piping, with an energy transfer station located at each building.

Today County Council approved a business plan that will see construction of the first phase of the system starting in June 2005, with operation in March 2006. The first phase consists of a heat-only energy plant and associated distribution piping systems.

Natural gas will initially fuel the system. However, the first phase is being designed to use alternative fuels should one prove more economical or environmentally sound in future?for example, municipal waste, bio fuels or surplus heat from an industrial source.

The system is expected to reduce greenhouse gas production by 1,100 tonnes per year, or 18 per cent, compared with conventional heating methods.

"This system demonstrates our goal to develop Centre in the Park in a way that makes it a model of sustainability and environmental management," says Mayor Cathy Olesen.

What makes the project feasible is the number of buildings in the area and their heating requirements.

Confirmed customers are the five County-owned facilities in the area, and new buildings to be constructed in Centre in the Park by Christenson Developments Ltd. Both Elk Island Public Schools and Elk Island Catholic Schools have indicated their interest in connecting to the system to heat high schools in the area, providing project funding can be obtained.

There is also the possibility of connecting additional customers as new commercial or other development occurs in the area.

The system will be operated as a utility, which means no tax dollars are used to support either the capital or operating costs. These will be recovered over time through fees paid by customers on the system.

The total capital cost is $7.8 million, of which the County will borrow up to $6.8 million. Grants to help reduce the cost may be available from the federal and provincial governments. If these can be obtained, they would further reduce the direct cost to the County.

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Contact: Cathy Olesen, Mayor, 464-8000