pwgsc central heating and cooling distribution
TRANSCRIPT
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PWGSC Central Heating and Cooling Distribution System VE Study
CSVA 2012 Conference Calgary, AlbertaOctober 25 -26, 2012
Steve Taylor CVS-Life
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Presentation OutlineConfidentialityProject How was VE applied ?Outcome Questions
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Confidentiality
• Presentation will focus on the innovative use of VE to plan the
project• No confidential information will
be presented or answered during the questions
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Project Background
Government buildings served by aging central plants supplying steam for heating and chilled water for cooling. Systems outdated resulting in high costsEnergy Services Acquisition Program (ESAP) launched in in 2009The aim of this program is to bring in a private partner through a Public Private Partnership (PPP)
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The ProjectCanadian government is focusing on delivering lower cost of heating and cooling to its buildings in the Nation’s Capital102 buildingsPeak heating load buildings – 140 MWPeak cooling load - +100 MWTrench length main heat distribution piping proposed network layout – 7500 mTrench length main cooling distribution piping proposed network layout – 8000 mPrevious call to market on interest and delivery models from private sector
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Business PlanProject development proceeding with a business plan for the delivery of a PPP model to finance and build a private sector distribution system for heating and cooling of 102 federal buildingsCurrently serviced from 8 existing plants (2 –Booth Street and Central Experimental Farm) are scheduled for decommissionCliff Street plant supplies 50% (52 buildings) of the heating and cooling load in the downtown coreThe explosion approximately 2 years ago was the trigger to plan for a longer term vision to move from the 1940’s technologyNew plan will be more energy efficient and follow federal mandates that support environmental sustainability
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77
Gatineau
OttawaOttawa River
Energy Infrastructure in the NCAEnergy Infrastructure in the NCA
Cliff Plant
Tunney’s Pasture Plant
Booth Plant
Confederation Heights Plant
RCMP Plant
NRC PlantPrinting Bureau Plant
52 buildings served
18 buildings served
11 buildings served
5 buildings served
14 buildings served
1 building served 2 buildings served
Three plants are interconnected
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ExistingInfrastructure
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New Technology
Shallow Buried Low Temperature Heating in Northern Climates
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Private Sector Delivery
Distribution will include heating and cooling piped networks to 102 federal buildings and potentially adjacent private or municipal customersModel being carried forward is a PPP initiative where federal government would own land and infrastructurePrivate sector developer build and operate for a concession periodTwo Request for Informations (RFI’s) have seen interest from investors, developers and distributors
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Purpose of VE
Workshop to focus on reviewing benchmark pricing for the project, developing consensus for the life cycle cost model and developing ideas to improve value, improve certainty of the estimate and reduce riskIt is to build confidence in the project scope and budget and the business plan for the project
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Energy Service Acquisition Program (ESAP) Objectives
Three principal mandates– Establish best practices and a technical direction for
PWGSC– Contribute to the Greening of Government including
meeting our Federal Sustainable Development Strategy commitments (25% GHG reduction)
– Secure partner to operate, invest in and transform the system – considering a 35 year contract using a two stage P3 selection process
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Best PracticesMove to low temperature hot water – initially 95C supply/60C return and then progress to a 70C/40C system in the longer termAll new buildings and major renovations to adopt the 70C/40C compatibilityChillers - electric drive with acceptable working fluidsCooling to maximize use of river water “free cooling” or improvements where possible“Green” Energy sources to be maximized – waste heat, biomass etc.
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Approximate Schedule
Value Engineering to review costs and recommend next stepsInternal and Treasury Board approvals RFQ followed by constructive engagement with shortlisted proponentsRFP timing to depend on the nature of the contractContract to follow
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Priorities of the Value Engineering Session
Internal analyses with input from other district energy projects, suggested that costs equal to or lower than commercial rates are achievable. First priority is to establish a plausible target price for heating and cooling for a “Greenfields”project.Second Priority to assess impact on costs of using existing infrastructureThird is to explore “greening” options.
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VE Team
Mix of project development teamIndependent participants (operators and industry experts in district energy supply systems) –national and international
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Typical Distribution network
Cliff & NRC Plants -downtown
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Opportunities for Project and Private Sector
Conversion from steam to low-temperature hot water heating Opportunities to pick up private sector customersPotential to use existing infrastructure where cost competitive
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Creativity/Evaluation/Development
Ideas– 148 Generated– 66 Shortlisted– 39 Developed– 29 Estimate Corrections
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Greenfield Opportunities Ideas
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Brownfield Opportunities
Use of existing tunnels and equipment to deliver lower cost network
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Context of ResultsWorld expertise on certainty of Greenfield estimate (capital and life cycle costs)Provided a magnitude of savings possible with Brownfield assetsProvide certainty to federal budgeting of project for decision-makersPWGSC & ESAP to use as tool for validation
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Contact Information
Steve Taylor CVS-LifeBytown Engineering Steven.taylor@bytowneng,com