thermal energy systems in british columbia pollution probe energy workshop march 17, 2011 gareth...
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Thermal Energy Systems in British Columbia
Pollution Probe Energy Workshop
March 17, 2011
Gareth JonesDirector, Business Development
Forward looking statement
By their very nature, forward-looking statements are based on underlying assumptions and are subject to inherent risks and uncertainties surrounding future expectations generally. Such events include, but are not limited to, general economic, market and business conditions, regulatory developments, weather and competition. FortisBC cautions readers that should certain events or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation’s continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. The Corporation’s disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Regulated
Utilities
BusinessesFortis Generation
Fortis Generation
Fortis Properties
Newfoundland Power
Maritime Electric
FortisOntario
Belize Electricity
Caribbean Utilities
FortisBC
FortisAlberta
Non-Regulated
Turks and Caicos
2.1 million gas and electricity customers
$12 billion assets
• Over one million energy customers
• 135 communities across BC• Assets of $6.4 billion• $2.5 billion planned capital
spend over the next five years• Over 1,800 employees• $1.03 billion invested since 2007• Integrated energy solutions
portfolio
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British Columbia Legislated Targets• Reducing BC’s GHG emissions by at least 33% below 2007 levels by
2020 and at least 80% below by 2050
BC Energy Customers
• Two thirds of British Columbians are interested in incorporating low carbon energy into their home
• 85% are willing to pay a premium (primarily up to 5%) for low carbon energy options
• One half of BC residents believe we should offer low carbon energy
• Strongest support for our low carbon energy offerings coming from residents age 18-34
Transforming Thermal Energy Delivery in BC
Energy System EvolutionGHG ReductionEnergy Cost Convergence
Natural Gas Electricity DES/Alternative Energy Sources Geoexchange Biogas Solar
QUEST Vision
“By 2050 every community in Canada is operating as an integrated energy system, and accordingly, all community development and
redevelopment incorporates an integrated energy system.”
Integrated Energy Utility
BC Energy Infrastructure
•Existing 100 year old system• Interconnected•Scalable•Relatively low average cost
Biogas Supply Model
Biogas Source
Upgrading Plant
Metering, Monitoring, Odourizing
Terasen Transmission and
Distribution System
FortisBC invests in “upgrading” plantand interconnection assets
FortisBC
Biogas vs. Biomethane
• Biogas is gas generated from organic material • Raw biogas – typically 50% - 60% methane
• Potential Sources:• Anaerobic Digester Gas• Landfill Gas
• Biomethane:• Methane from a renewable source – “Upgraded Gas”
Raw Biogas Biomethane
40% - 60% CH4 >96% CH4
30% - 50% CO2 <2% CO2
0% - 2% O2 <0.4% O2
0-2000+ ppm H2S Sulphur free
Upgrade
Catalyst Project
• Partner Catalyst Power Inc• Digester Project• FortisBC Capital ~ $0.7M• Total Capital ~ $6.0 M• Average 120,000 GJ/year• FortisBC owns interconnect
equipment only• Commissioned Sep 2010
Salmon Arm Project
• Partner CSRD• Landfill Gas project• FortisBC ~ $2.2 Million• Total capital ~ $6.0 Million• Average 30,000 GJ/year• FortisBC owns upgrade equipment• Commissioned June 2010
Discrete to District Thermal Energy Systems
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Discrete = one buildingDistrict = many buildings
Aquattro, Colwood BC
Type of Development:• 563 residential units total
• 24 buildings
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Energy System: Geoexchange loop fields by FortisBC
Phased installation as community develops
Environmental Benefits Reduced demand on BC’s electricity grid
Savings of 2 tonnes of GHGs / year for each 2,000 square foot residential unit
Geo-Exchange drilling
Aquattro Site
Geo-Exchange Systems for Multi-Building Residential Development
District Energy Systems
Need three things: • Energy Source Options
• Efficiency Gain Opportunities
• Density & Scalability
Two types of projects underway:• Retrofit – modifying existing buildings to use thermal energy; system
developed in a limited number of pre-planned phases
• Multi-phase New Development – plan the DES in consultation with developer over multiple phases, initial phases have detailed design/cost; subsequent phases are conceptual with several design options and high level costs
Illustration – Setting Thermal Energy Customer RatesCost of Service vs. Competitive Alternative ($/kWh)
Dockside Green, Victoria BC
15 acre harbourfront redevelopment
• 1.2 million sq. ft residential
• 150,000 sq. ft commercial/retail
• 20,000 sq. ft. light industrial
District Energy for Brownfield Re-development
Energy System: 2.5 MW Biomass
Gasification Plant 3.4MW natural gas
back-up & peaking Also serves buildings
outside development
Environmental Benefits LEED Platinum Greenhouse Gas
Neutral – no net emissions
Kelowna District Energy Systems
South Pandosy DES
• WWT Plant
• New Development
• Commercial Centre
• Hospital
Downtown Core DES
• Tolko
• Multifamily
• Delta Grand
• City Hall
• Library
• Arena
• Downtown
Generator
Engine
Quesnel SawmillWood-Burner
Hospital
Arena
City Hall
Hotels, Provincial Government Office,Medical Building, Apartments, RCMP Building, Dunrovin Lodge, and others.
CogenerationPlant
Sawmill & PlanerBuildings
Community Heat Piping
Electricity
Quesnel District Energy SystemCombined Heat and Power Initiative: Proposed Arrangement