Public Services and Procurement and Accessibility Canada along with Minister of the Environment and Climate Change has announced that the Government of Canada will partner with Innovate Energy, through a public-private partnership model, to modernize how it heats and cools buildings in the National Capital Region which will also allow the city, the community, and local businesses tap into cleaner power thus selecting Innovate Energy as a winner for the National Capital Region district energy system project.

The total contract is valued at CAD 2.6 billion (US$ 1.96) over a 35 year period. The first portion is for the design and construction of the new system, valued at CAD 1.1 billion (US$ 829 million). The second portion is for the operation and maintenance, which includes the energy and fuel costs of the new system valued at CAD 1.5 billion (US$ 1.13 billion).

Innovate Energy, a consortium consisting of ENGIE, PCL Constructors Canada, PCL Investments Canada and Black & McDonald won a 35-year public-private partnership contract to modernize, maintain and operate the district energy system that heats 80 buildings and cools 67 buildings, including the Parliament Buildings, in Canada’s Capital Region (Ottawa-Gatineau). This mandate is part of the Government of Canada’s Energy Services Acquisition Program and it will contribute to the Government’s goal to reduce its energy consumption and greenhouse gas emissions from operations by 40% by 2030.

Innovate Energy was selected because of its unique capacity to deliver an innovative approach to modernizing the district energy system. The project includes making the existing heating system safer and less energy-consuming by converting it from steam to hot water; upgrading existing facilities in Ottawa and Gatineau, including the strategic and visible Cliff plant which services the Parliament buildings and switching from steam to electric chillers.

From 2019 to 2025, Innovate Energy partners will design, build and convert the existing high-temperature steam system to a more energy-efficient low-temperature hot water system while continuing to provide heating and cooling by operating the existing facilities. The conversion will facilitate the eventual adoption of more sustainable types of fuels. Once the construction and validation periods are completed, ENGIE will operate and maintain the new system through to 2055.