Building The Thermal Grid
Energy Matters May 2012
Richard Damecour CEO, FVB Energy Inc.
FVB Energy Inc.
• District energy is our only business • Key principals bring field tested experience in management, marketing and operations at successful district energy utilities • Broad perspectives because of work in over 35 North American cities in 9 countries for 10 different types of district energy clients • Significant role in 85% of District Energy Projects since 1990
What is District Energy?
What is District Energy?
There are ONLY Two Ways That We Can Reduce CO2 and Not Reduce Our Standard of Living
The Fundamentals: Thermal vs. Electrical
Norman: Commercial/Institutional Sector - 2008
Why District Energy : Denmark 1973 "
Imported oil provided 94% of Denmark s energy supply; self-sufficiency 2%
Oil crisis caused a severe shock to the economy which brought forward many ideas for energy conservation, fuel switching, and Combined Heat & Power (CHP)
Large quantities of natural gas were discovered in the North Sea
At the time, district heating supplied 30% of the Danish heating market; with 33% of heat produced by CHP plants
By 1980, energy planning at the Federal level lead to legislation & tax measures mandating a path to higher efficiency, cleaner fuels, the expansion of district energy systems, and the use of combined heat and power.
Why District Energy : Denmark 2000 "
Dependence on imported oil – 2%
Use of indigenous energy sources – 65% of total energy consumption
District heating –50% (up from 30%)
District heating produced by CHP plants – 64% (up from 33%)
Renewable energy provides 25% of district energy fuel input
25% of Denmark s total energy consumption fueled by natural gas
60% of all Danish homes are heated by district energy
Supply for heat generation in Swedish district heating systems TWh/year
60 Other fuels
Fuel oil Coal
Heat pumps Gases and LPG
Wood fuel and peat
Industrial surplus heat Waste incineration
Sweden: Specific carbon dioxide emissions for heat generated in district heating systems kg CO2 /MWh heat 500 Heat generated from fuel oil
Heat generated from natural gas
District heat: Net emissions when electricity valued as zero emission
District heat: Net emissions when electricity valued as gas combined cycle condensing
District heat: Net emissions when electricity valued as coal condensing
50 0 1970
Benefits to Communities " Long-term Community Investment " Economic Development Tool " Enhances Developer s Green Image " Opportunity for CHP " Fuel Flexibility & Diversity (and a bridge from nonrenewable to renewable fuels) " Fuel Dollars Stay Within the Community " Employment
Conventional Building Systems Approach
Natural Gas: Heating & domestic water
Electricity: Cooling & other loads
50% fuel conversion 10% transmission/ distribution losses
Boiler system efficiency increase; +diversity
Chiller system efficiency increase; +diversity
Combined heat & power
Hot water thermal storage: recover excess heat from CHP operations, discharge at off-peak hours for heating
Chilled water thermal storage: produce chilled water at night and discharge during peak hours.
Absorption cooling: CHP heat produces cooling
Bridge to renewable fuels (solar, biomass)
Leading Edge Sustainable Community Design " Regent Park
" Southeast Falls Creek (Olympic village)
" Calgary East Village
Energy Transfer Station
Municipality Must be Involved to Have a Successful System
Methodology Must be Developed to Ensure Maximum Connection
City Controlled Buildings Must be Connected ASAP
Phase Build Out of System to Match Revenue
Minimum Operations and Overheads for DE systems in Early Years
§ If a Community does not have thermal energy infrastructure – it has not met the sustainability test. § If a Province does not have a thermal energy infrastructure strategy, it is missing 50% of the energy equation.