Terasen Gas to develop renewable energy projects in Kelowna worth $38-million

City expected to save energy costs and produce fewer greenhouse gases

SURREY, B.C., Sept. 30 /CNW/ - Terasen Gas and the City of Kelowna have entered into an agreement in principle to develop two unique renewable energy systems in Kelowna valued at $22-million and $16-million respectively. Using Terasen-owned and operated district energy systems, the Kelowna City Centre Energy System and Kelowna South Pandosy Energy System will help the City reduce its energy use and lower greenhouse gas emissions.

"This is an important, innovative collaboration that will help to reduce our carbon footprint," said City of Kelowna Mayor Sharon Shepherd. "District energy can significantly reduce greenhouse gas emissions while ensuring businesses and residences have a secure source of energy. This is one more step towards our goal to build a safe, vibrant and sustainable city." 

"An integrated energy solution, such as a district energy system, allows us to incorporate alternative energy sources, in this case waste heat and water, to help ensure British Columbia meets its energy and environmental goals," said Doug Stout, Vice President, Energy Solutions and External Relations, Terasen Gas and FortisBC. "The systems will provide many benefits, including energy savings, affordable cost for customers, and proven reliability."

The two district energy systems will use waste heat and water from the City's wastewater treatment plant and from Sun-Rype Products Ltd., with other project collaborators providing energy to heat or cool a number of buildings in Kelowna. The new infrastructure will be put in place over the next decade. According to the City of Kelowna's January 2010 pre-feasibility study, both projects combined could also have the potential to save 16,300 tonnes of CO₂ per year - equivalent to removing approximately over 3,500 cars from the road annually.

"Sun-Rype is very pleased to collaborate in this important environmental initiative in Kelowna, and we look forward to working with Terasen and the City of Kelowna to make this project a success," said Dave McAnerney, CEO, Sun-Rype Products Ltd.

Before building the two district energy systems, Terasen Gas and the City of Kelowna will work to negotiate and conclude definitive agreements. With the successful conclusion of these agreements and the engineering work, approval from the British Columbia Utilities Commission will be required to proceed with the projects.

In October 2009, the City of Kelowna began exploring the possibility of district energy systems with local businesses. The pre-feasibility study identified a potential for district energy systems in four key areas of Kelowna: City Centre, South Pandosy, Orchard Park / Highway Centre and Rutland Centre.

Terasen Gas builds, owns and operates district energy systems for large-scale developments and existing communities. Buildings connected to district energy systems have lower capital costs for their energy equipment as they can eliminate conventional boilers, chillers or air conditioners, saving valuable upfront dollars that can be invested elsewhere.

For more information on Terasen Gas' integrated energy solutions, please visit terasengas.com.

For more information on the district energy pre-feasibility study, see the energy management section at kelowna.ca/environment.

Terasen Gas is mainly composed of the operations of Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., both indirect wholly owned subsidiaries of Fortis Inc. Fortis Inc., the largest investor-owned distribution utility in Canada, serves approximately 2,100,000 gas and electric customers and has total assets exceeding $12 billion. Its regulated holdings include Terasen Gas and electric utilities in five Canadian provinces and three Caribbean countries. Fortis Inc. owns non-regulated hydroelectric generation assets across Canada and in Belize and upper New York State. It also owns hotels and commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com

NOTE TO NEWS EDITORS: Mayor Sharon Shepherd is in attendance at the Union of British Columbia Municipalities (UBCM) convention in Whistler. Those wishing phone interviews, please contact Tom Wilson at 250-469-8663 to make arrangements.

For further information:

Media Contacts:

Marcus Wong
Corporate Communications Manager
Terasen Gas
Phone: [phone]
Email: [email protected]
Follow us at: www.twitter.com/terasengas

Mark Watt
Strategic Projects Manager
City of Kelowna
Phone [phone]

Tom Wilson
Community & Media Relations
City of Kelowna
Phone [phone]
Follow us at: twitter.com/cityofkelowna