Plan for new green energy heating system
District heating systems already exist in Ontario, including outlets in Hamilton and Markham, and have proven to provide good economic returns as well as reducing greenhouse gas emissions.
If Doug Runions, of Precision Wood Products, has his way, Campbellford will have a similarly successful system if and when a few more obstacles are cleared. Runions took the first step toward that goal February 1 when municipal council offered partnership support in the form of letters of intent for municipal grant funding to assist with the cost of a district heating system feasibility study.
Runions has been working with municipal staff toward a study to determine if such a system on a local basis is viable for the Tanner Industrial Park, where Precision Woods is located, and the potential of expansion to a wider area.
According to a report tabled by Community Development Officer Lynn Phillips, the district heating system would provide neutral green energy fuelled by wood waste to the buildings in Tanner Industrial Park and potentially beyond to larger municipal buildings and facilities.
The Precision Woods' operator has been working with consultant Jeff Butler on the project. Butler has experience with municipalities on similar projects and estimates the cost of a feasibility study at $250,000. If deemed feasible and implemented, the cost of a district heating system is estimated at $10 million to $30 million depending on the area serviced.
Three programs have been identified to assist with the funding of the feasibility study. They are the Federation of Canadian Municipalities (FCM) Green Municipal Fund, which provides up to 50 per cent of costs, Gas Tax Fund's Green Infrastructure Fund, which has a focus on green priorities and sustainable infrastructure, providing one-third of the cost of a project, and the Community Energy Partnership Program, which facilitates the participation of communities in the development of renewable energy generation facilities.
Runions has requested that the Municipality of Trent Hills support the project by preparing and submitting the application to the FCM Green Municipal Fund and/or the Green Infrastructure Fund and potentially other grant programs that only local governments may access.
In her report, Phillips points out that another heating model in Gussing, Austria, has resulted in the town building a tourism industry around the self-sufficient energy supply based on regionally available renewable resources and sustainable regional development.
Various ownership models that could be implemented are being studied. One option is a co-op model with the municipality as a part-owner, providing a potential source of revenue. The report notes that a district heating system can provide business and residents with long-term price stability and reduced energy costs. This, in light of forecasted increased hydro rates in Ontario, would make Trent Hills a desirable location.