Energy Services Acquisition Program’s Energy Service Modernization

Rank 2024

26

Image Credit: Walters Group

Industry Sector: Buildings

Project Type: Public Spaces

Project Value: $3 billion

Funding Source: Public

Federal Funding: $3 billion

Province: Ontario and Quebec

City / Region: Ottawa and Gatineau

Estimated End Date of Substantial Completion: 2027

Within the National Capital Region (NCR), Public Services and Procurement Canada (PSPC) is responsible for heating 80 buildings and cooling 67 buildings. As part of PSPC’s activities, the Energy Services Acquisition Program was established in 2009 to explore new business models for the provision of energy services in the NCR. The modernization project is looking for an energy services solution for PSPC’s five central heating and cooling plants (CHCP) and their associated distribution networks within the NCR. As part of the new District Energy System, the design phase for the Modernized Gatineau Energy Centre began in spring 2022, and construction is expected to be completed by the end of 2026. The new centre is part of the District Energy System and when operational, will be carbon neutral and one of the cleanest, most sustainable energy centres of this scale in North America. By 2027, the entire District Energy System will be modernized and converted from an energy-intensive and high-polluting steam system to a state-of-the-art low-temperature hot-water system, reducing greenhouse gas emissions from heating and cooling operations by an estimated 92 per cent.

Project Owner: Government of Canada

P3 Team Members/Project Team: DBFOM Team: Innovate Energy—Black & McDonald Capital Limited; Black & McDonald Limited; ENGIE Services Inc.; PCL Constructors Canada Inc.; PCL Investments Canada Inc.; BBB Architects Ottawa/Golder-a WSP company (design partners)

Other Key Players: EY (oversight advisor); WSP (engineering services); Aon (risk advisor); Tiree/Colliers Project Leaders (project management & business consulting services); Turner & Townsend (cost management)

Legal: Norton Rose Fulbright (advisor to project owner)

Financing Detail: $1.1 billion will be spent on system installation (to be completed by 2025), with $1.5 billion to be spent on maintenance through to 2055.

2023 Rank: 25

2022 Rank: 26

2021 Rank: 23

2020 Rank: 22

2019 Rank: 49

2018 Rank: 45