Since 2010, Reshape has been assisting two BC Health Authorities (PHSA and VCHA) on a unique fuel-switching and district energy expansion opportunity. From our initial involvement completing the screening study for the project, to the business case development and approval, through the negotiations with Health Authorities’ utility partner, and into early project implementation, Reshape has provided Project Advisor and Project Manager services.
Three Vancouver hospital campuses are located within a 1 km radius in the Fairview Slopes and Shaughnessy neighbourhoods. The hospitals have existing gas-fired steam distribution systems that provide heat, hot water, and steam service to over 500,000 m2 of health-care facilities in almost 50 buildings. The combined peak capacity of the hospital systems is in the order of 50 MW and the new low-carbon energy generation that will be brought online will be in the order of 15 – 20 MW, reducing emissions by 60 to 70 per cent. The project is expected to reduce emissions by 25,000 tonnes per year, allowing PHSA and VCHA to meet their entire 2020 climate targets through this project.
The project involves a construction and long-term services arrangement with two public sector organizations (PSO) and a private utility. While the project is able to take advantage of some provincial government grants to support the business case, it is expected that pre-grant financial savings will be achieved. Organizations like hospitals and universities are being steered toward low-carbon energy systems to gain relief from the higher cost of carbon they are facing.
The system also has the potential to expand beyond the hospital boundaries to serve non-health-care buildings and to establish a low-carbon district energy system in the growing Broadway and Cambie corridors.
Reshape has played several roles on the project:
- Lead consultant in the initial project screening study, completing a feasibility analysis, project screening, and scoping exercise
- Project Advisor supporting the Health Authority in business case development (including detailed pro forma analysis), utility agreement negotiations, and strategy on overall project delivery
- Acted as Project Manager for and primary point on behalf of the Health Authorities for “on the ground” tasks and issues with the utility partner and the City of Vancouver.