Canada Infrastructure Bank Signs Memorandum Of Understanding With The City Of Richmond’s Lulu Island Energy Company
RICHMOND – Canada Infrastructure Bank (CIB) and Lulu Island Energy Company today announced the signing of a Memorandum of Understanding (MOU) formalizing their collaboration to develop a new district energy project in Richmond, British Columbia.
This is the Canada Infrastructure Bank’s first opportunity to partner on a project in British Columbia. The CIB has specialized infrastructure expertise and this project is consistent with its mandate to advise on and potentially invest in green infrastructure projects that are in the public interest.
Lulu Island Energy Company is a municipal corporation wholly-owned by the City of Richmond established to implement and operate district energy utility systems across the city in British Columbia’s Lower Mainland. The City of Richmond saw the benefits of district energy in meeting sustainability goals within its Community Energy and Emissions Plan and implemented three district energy utilities (DEU): the multi-award winning Alexandra DEU; the Oval Village DEU which services the waterfront community around the world renowned Richmond Olympic Oval; and the City Centre DEU.
The new Lulu Island Energy Company district energy project involves expanding the City’s current district energy systems from 330,000 square metres (3.6 million square feet) to more than 4.7 million square metres (50 million square feet) over time, conditional to approval by Richmond City Council.
The MOU confirms CIB and Lulu Island Energy Company will conduct further due diligence and financial structuring work regarding a potential new district energy system concession agreement with Corix Utilities, a leading provider of sustainable energy and environmental management solutions across Canada and the U.S. Lulu Island Energy Company and Corix Utilities are currently developing the Oval Village District Energy system, where Corix is responsible for the design, construction, financing, operations and maintenance of the system, while the City of Richmond is regulating and setting rates for customers.
CIB’s work could lead to an investment in the project, subject to all standard due diligence and decision making.
This is CIB’s first opportunity in British Columbia. CIB is proud to partner with Lulu Island Energy Company and the City of Richmond. District energy is aligned with federal government and CIB priorities to invest in green infrastructure and there is potential for this project to reduce greenhouse gas emissions. This is a tremendous opportunity for CIB to expand work with an innovative municipality and develop a project that can combine both public and institutional investment.
The City of Richmond has received international recognition for its leadership in developing district energy systems designed to reduce carbon emissions while delivering an affordable and reliable heating and cooling source for thousands of residents, commercial and institutional users. As an important component of Richmond’s community planning, district energy systems provide sustainable and economic energy sources. Partnering with Canada Infrastructure Bank on our City Centre district energy utility is an excellent opportunity to further our energy efficiency and resiliency for many years to come.
The Canada Infrastructure Bank is playing a leading role in new infrastructure projects that have a positive impact on the environment and on communities. The CIB’s infrastructure expertise and its advisory function will be crucial to this partnership with Lulu Island Energy Company and the City of Richmond.
Quick Facts
- CIB is focused on transformational projects that are in the public interest. Public transit, trade and transportation, green infrastructure and broadband are the priority sectors for investment.
- As a Crown corporation, CIB is mandated to use $35 billion in federal funding to attract private sector and institutional investment to new revenue-generating infrastructure projects.
- CIB’s Board of Directors is responsible for independently making investment decisions.
- The City of Richmond’s official plan calls for higher density and mixed use buildings in future residential and commercial development. As a result, the City will benefit from low carbon energy sources on an expedited basis that would provide heating and cooling to buildings in the region.
- Lulu Island Energy Company’s district energy system will use zero-carbon sewer heat recovery technology to extract heat from the local sewer force main once the system is fully built out.
