RICHMOND, B.C. – The City of Richmond, Canada Infrastructure Bank (CIB), Lulu Island Energy Company (LIEC) and Corix Infrastructure Inc. have achieved financial close on a district energy expansion project in the city.
Under the agreement, the CIB will provide $175 million in financing for the LIEC City Centre District Energy Utility project. It will enable expansion to more than 170 new residential and mixed-use commercial development sites in the area by 2050, using low-carbon heat recovered from the Gilbert Road regional sewer system, a CIB release stated.
“We are proud to invest $175 million to help create a green energy network which will benefit businesses, institutions and residents of the City of Richmond for generations to come. Our investment will help Richmond meet its ambitious climate change goals and create spin off economic benefits in one of British Columbia’s largest cities,” CIB CEO Ehren Cory said in a press release.
Once complete the project is expected to reduce greenhouse gas emissions by one million tonnes by 2050, with the amount of connected space to the district energy system increasing 10-fold to 50 million square feet.
“The benefits of this expansion will be realized not only by the residents and businesses connected to the utility, but the entire community as it will reduce greenhouse gas emissions by an estimated one million tonnes when completed. District energy is a key pillar for achieving Richmond’s short- and long-term community greenhouse gas emission reduction goals as well as the delivery of efficient, sustainable and environmentally friendly energy for the community,” Richmond Mayor Malcolm Brody added.
Corix will provide district energy management expertise and will be responsible for design, construction, financing, operations and maintenance of the city centre system.
Under a previous agreement, Corix has been the LIEC’s partner since 2014 in delivery of the Oval Village District Energy Utility.
The LIEC is a municipal corporation wholly owned by the City of Richmond. It was established to implement and operate district energy utility systems in Richmond’s City Centre area in British Columbia’s Metro Vancouver region.