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District Energy Complements Growth Strategy
September, 2011
Redevelopment Compels Stricter Environmental Controls
A steam plant built to power World War II munitions manufacturing is now part of the growth and economic development strategy in a rapidly growing Greater Toronto Area (GTA) community. Earlier this year, Ajax Council approved a proposal to redevelop the 70-year-old plant and convert it to a biomass-fueled cogeneration facility.
The project proponent, Index Energy, has a contract through Ontario’s Feed-in Tariff (FIT) renewable energy program to produce about 18 megawatts (MW) of electricity and also plans to supply steam and hot and chilled water to existing and future development in the Town’s central core. Construction is expected to begin before year-end on new installations to expand the plant’s capacity, comply with more stringent environmental standards and improve the aesthetics of the site.
“From the Town’s perspective, the plant is a unique part of Ajax’s history,” says Gary Muller, the Manager of Planning in the municipality that boasts more than 100,000 residents. “This project will bring it into a new century and offers an opportunity for local businesses and residents to tap into a source of cheaper energy.”
The aging facility still supplies steam for one large textile finishing company, but has lost much of its former business as nearby manufacturers either closed down or switched to other options. With this smaller customer base, the steam plant continues to operate within the parameters of its circa-1984 Certificate of Approval (CofA) from Ontario’s Ministry of the Environment – a document that allows plant operators to burn up to 550 tonnes of wood fuel daily with no controls on emissions.
Redevelopment plans triggered the requirement for a CofA amendment, which alone would have reduced the allowable release of pollutants. Index Energy has further agreed to voluntarily comply with blended standards that also incorporate recognized best practices under the U.S. Environmental Protection Act and European Union regulations – something that the Town of Ajax pushed for.
The updated plant will house four modern wood-fired combustors and boilers with associated emissions controls, while one of the existing boilers will be completely rebuilt to serve as a backup when primary equipment is shut down for maintenance. New technology is projected to reduce particulate emissions to 20 milligrams per cubic metre (mg/m3) from the current estimated level of 250 mg/m3.
“A lot of the Town’s issues and concerns really related to ensuring that the emissions from the plant were as low as possible, and we have achieved the best possible outcome,” Muller notes.
Nor is the current outdoor storage of wood fuel and a pile of ash waste necessarily the urban ambience civic officials want to see in an area bordering the downtown retail/commercial core where they hope to spur new employment related and residential development. Plant upgrades include an indoor storage area and ash-handling systems, plus a new smokestack and exterior improvements.
“Essentially, it’s going to be an entirely new plant, although some of the existing structural elements can be saved and adapted just because they were built to such a hardy standard originally,” Muller says.
The three newly installed turbines – two high-pressure and one low-pressure model – will ultimately generate up to 25 MW of electricity, although development proponents project it will be three to six years before the electricity output is at full capacity. Meanwhile, steam will be delivered via the plant’s existing underground network, but new pipes will be needed for hot and chilled water.
Index Energy has signed a 20-year agreement that allows the company access to municipal rights-of-way to for the underground pipe in return for giving the Town of Ajax a share of the profits. This will be based on a percentage of gross revenues, rising in half-percent increments from 0.5% in the first five years to 2% in the final five years.
Planning department staff, in turn, will encourage developers to connect to the steam and water loops.
Redevelopment plans are in sync with Ontario’s Places to Grow Act and associated growth plan for the GTA that mandates 40% of new development to occur within the existing built-up areas of suburban municipalities. In Ajax, that means finding room for a population projected to reach 138,000 by 2031 – and new development that is going to need heating and cooling.
“This is right on the edge of downtown so there is an absolute ability to feed into both existing and future residential development,” Muller says.
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