To expand the world’s largest wastewater energy transfer facility so more residents and businesses can benefit from affordable, low-carbon energy, the federal government announced an additional investment of $24.9 million in Markham District Energy.
This investment will significantly reduce the energy network’s natural gas consumption with a new 18.5 megawatt wastewater heat recovery system and a new 500 kilowatt biomass pellet boiler, which will reduce emissions by over 700,000 tonnes of CO2e over the projects’ lifetimes.
“We are empowering homegrown innovators, like Markham District Energy, to turn their ideas into economic success stories. By investing in cutting-edge technology, we are making energy more affordable—saving residents and businesses money on their energy bills—while also reducing emissions and creating good-paying jobs,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance.
Markham District Energy’s network is already delivering reliable, cost-efficient heating and cooling to over 15 million square feet across 240 buildings. Through a system of underground pipes, energy is delivered to buildings in the form of hot water and chilled water to heat and cool building space. This innovative clean energy network is attracting major new investments to Markham and reducing greenhouse gas emissions by 35 per cent, with a target of net-zero by 2050.
“Today represents a milestone in our 25-year history. The wastewater energy transfer project not only further positions Markham District Energy as a leader in innovative energy solutions and accelerates our path to becoming a net-zero district energy supplier, but is a representation of the outcome when there is cooperation and strategic support from all levels of government,” said Bruce Ander, president and CEO of Markham Energy District Inc.
The investment builds on federal support already delivered to Markham District Energy, including:
- The Canada Growth Fund’s novel carbon contract for difference with Markham District Energy Inc., first announced in June. This carbon contract for difference will help Markham’s public energy utility generate more clean energy by using Noventa Energy Partners Inc.’s Wastewater Energy Transfer (WET) technology to extract thermal energy from wastewater. Over the 10-year carbon contract for difference, the project has the potential to reduce more than 177,000 tonnes of CO2e emissions with an initial price of $100 per tonne of CO2e.
- The Canada Infrastructure Bank’s $135 million low-cost loan, announced in November 2022, which was matched by CIBC. This combined $270 million in financing will help expedite the large-scale expansion of Markham District Energy to more buildings and ensure its long-term reliability and cost-efficiency, reducing emissions by 33,700 tonnes of CO2e.
Combined, federal investments in Markham District Energy will reduce emissions by 910,700 tonnes of CO2e by enabling the affordable, low-carbon energy network to expand to more residents and businesses in Markham’s downtown core.
“The Government of Canada is delivering affordable and reliable power to Ontarians while advancing boldly toward a sustainable and prosperous future. The investment announced today in Markham ties in to the largest wastewater energy transfer project in North America and builds on the Canada Growth Fund’s historic investment in Markham District Energy’s network of nearly 250 buildings. I am pleased that this federal government is growing the momentum of the Green Buildings Strategy by investing in projects that will bring down energy bills and emissions alike,” said Jonathan Wilkinson, Minister of Energy and Natural Resources.
Today’s $24.9 million investment in Markham District Energy, which de-risks the adoption of cutting-edge clean technology, is sourced from two funds:
- Up to $16.7 million from the federal government’s Low Carbon Economy Fund; and,
- $8.2 million, consisting of $1 million in grants and $7.2 million in loans, from the federal government’s $2.4 billion Green Municipal Fund, which is administered by the Federation of Canadian Municipalities.
“The Federation of Canadian Municipalities’ Green Municipal Fund acts as a vital bridge to enable innovative projects, like Markham District Energy’s, to move forward while reducing risk and making them more attractive to investors. By unlocking more private investments, we can make our communities cleaner, more innovative, and more prosperous. Together, we’re moving toward achieving net zero,” said Geoff Stewart, President, Federation of Canadian Municipalities.
Featured image: (Government of Canada)
