Project will lower greenhouse gas emissions and operating costs at healthcare facility
TORONTO, Oct. 21, 2021 /CNW/ - The Canada Infrastructure Bank (CIB) has reached financial close on the world's largest raw wastewater energy transfer project, located at Toronto Western Hospital, part of the University Health Network (UHN).
Renewable energy company Noventa Energy Partners (Noventa) worked with UHN with the support of Enbridge Gas to develop the $42.9 million project which will provide approximately 90 per cent of the hospital's heating and cooling requirements.
Under the terms of the agreement, the CIB will invest up to $19.3 million in subordinated debt and Vancity Community Investment Bank will invest $15.3 million in senior debt.
Equity partners include Noventa and Enbridge Gas, while UHN will make a capital contribution.
The Government of Canada is providing a grant under the Environment and Climate Change Canada - Low Carbon Economy Fund.
The retrofit project will use the Huber ThermWin®️ System and Noventa IP to transfer thermal energy to and from wastewater flowing in the mid-Toronto interceptor sewer to provide low-carbon heating and cooling to the hospital.
As a result, the hospital's natural gas use and water consumption will be significantly reduced. Over the next 30 years, the hospital will see a cumulative reduction in greenhouse gas emissions of more than 250,000 tonnes.
This is the first project under the CIB's Public Building Retrofits Initiative, which seeks to achieve significant energy savings from infrastructure owned and/or managed by the public sector.
Construction activities began at Toronto Western Hospital earlier this month.
We are proud to partner with UHN and private-sector partners on our first public building retrofit investment. The project will dramatically lower GHG emissions at the hospital while helping UHN meet its climate change commitments. We look forward to working with more public sector asset owners and the private sector to invest in new energy retrofit projects which consider long-term sustainability and action on climate change.
Ehren Cory, CEO, Canada Infrastructure Bank
At UHN, we know climate change is a major threat to health. Over the past decade, our Energy & Environment team has completed more than 300 energy projects, which have already reduced greenhouse gas emissions by 25 per cent. We're excited to add the WET System to the roster – something we couldn't do without support from incredible partners, like the CIB, Noventa Energy Partners, VCIB, Enbridge Gas, Environment and Climate Change Canada and the City of Toronto.
Ron Swail, Vice President, Facilities Management – Planning, Redevelopment & Operations,
University Health Network
Financial institutions have a critical role to play in financing the transition to a low-carbon future. It will take many tools to reach net-zero and public and private collaboration will be crucial. VCIB is committed to support a clean and fair future for our communities and we will continue to back innovative technologies that create clean and cost-efficient energy systems.
Vince Gasparro, Managing Director of Corporate Development and Clean Energy Finance, Vancity Community Investment Bank
We are pleased to have achieved financial close for this important renewable energy project that will demonstrate the viability of wastewater energy transfer as a low-carbon means of heating and cooling our buildings. This milestone would not have been possible without the support of the University Health Network and the City of Toronto and our project partners, Enbridge Gas, the Canada Infrastructure Bank and VanCity Community Investment Bank.
Dennis Fotinos, CEO, Noventa Energy Partners
Enbridge Gas is pleased to be a partner in developing the largest wastewater heat recovery system in the world. It's an important step in protecting our natural resources as well as leveraging "waste" to create clean energy solutions. We are committed to reducing greenhouse gas emissions through a variety of initiatives, and this is one example of how we are investing our resources to further assist Ontario's transition to a greener future.
Cynthia Hansen, President, Enbridge Gas
Toronto Western Hospital is a 272-bed academic health science centre dedicated to delivering exceptional patient care, providing a breadth of services from emergency care to sophisticated brain surgery.
VCIB, a subsidiary of Vancity Group, is the only Canadian bank focused on supporting emerging and built environment climate solutions under $50 million.
The CIB is investing $35 billion in new infrastructure projects which increase economic growth, connect communities and act on climate change.
The CIB's investments are subject to approval by its Board of Directors.
SOURCE Canada Infrastructure Bank
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