Report to/Rapport au :

 

Planning and Environment Committee /

Comité de l'urbanisme et de l'environnement

 

and Council / et au Conseil

 

3 April 2009 / le 3 avril 2009

 

Submitted by/Soumis par : Nancy Schepers,

Deputy City Manager/Directrice municipale adjointe,

Infrastructure Services and Community Sustainability/

Services d’infrastructure et Viabilité des collectivités  

 

Contact Person/Personne ressource : W. Newell, Director / Directeur

Infrastructure Services/Services d’infrastructure

(613) 580-2424 x16002, Wayne.Newell@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-ICS-INF-0001

 

 

SUBJECT:

THERMAL ENERGY (USE OF COLD ENERGY)

 

 

OBJET :

ÉNERGIE THERMIQUE (UTILISATION DE L’ÉNERGIE FROIDE)

 

 

REPORT RECOMMENDATIONS

 

1.         That the Planning and Environment Committee receive this report for information.

 

2.         That the working group identified within this report, report back to Committee on the progress of the group by the end of Q2 2010.

 

RECOMMANDATIONS DU RAPPORT

 

1.         Que le Comité de l’urbanisme et de l’environnement prenne connaissance du présent rapport à titre  d’information.

 

2.         Que le groupe de travail indiqué dans le rapport fasse rapport sur ses progrès au Comité ’ici la fin du deuxième trimestre de 2010.

 

 

BACKGROUND

 

Council, at its meeting on 12 November 2008, approved the following motion:

 


That Council direct staff to, in conjunction with Hydro Ottawa/Energy Ottawa, explore the concept of thermal energy storage using "cold energy" from snow and/or ice to determine if thermal energy storage in combination with, or instead of, traditional energy could be used in some buildings, resulting in reduced operating costs for the municipality.

 

The use of snow and ice as a source of cooling energy during warmer months has been in use for centuries in many different parts of the world.  Various technologies associated with extracting the "cold energy" captured in snow and ice has evolved over time.  All of these technologies are fundamentally based on a process which collects snow or ice during cold periods, then stores it, using some form of protection from the sun and rain, making the "cold energy" available for use when needed.  However, with the ever increasing demand for space cooling and the development of cooling machines, snow and ice harvesting technology virtually disappeared from mainstream use.  The use of complex mechanical systems with sophisticated control systems is the current common approach to providing space cooling.  Such systems, which are dependent on electrical energy to function, are now being scrutinized for their impact on the environment and alternate ways of cooling are being explored and developed.

 

The current interest in developing more sustainable ways of operating buildings has created a demand for more energy efficient building technologies.  Interest is returning to the old idea of harvesting the "cold energy" trapped in snow and ice.  At the present time, there are a small number of functioning "cold energy" systems in Sweden and Japan.

 

The pre-eminent project to harvest the cold energy stored in snow pile was completed in Sweden in 2000.  The project was the basis for a doctoral thesis that provided comfort cooling to Sundsvall Hospital on the coast of the Baltic Sea in central Sweden.  Kjell Skogsberg wrote the thesis under the direction of Dr. Bo Nordell of Lulea University of Technology in Lulea, Sweden.

 

Japan also has developed several "cold energy" projects.  The glass pyramid in Sopporo, Japan uses snow cooling to satisfy its summer needs.  Another prominent project is the new Chitose Airport in Hokkaido, Japan.  This "cold energy project" is scheduled to start operating in 2010 and will provide 30% of the terminal buildings' summer cooling.

 

At the time this report was initially prepared, the mandate for Energy Management resided with the Design and Construction Division - Buildings/Facilities and Parks, Infrastructure Services and Community Sustainability.  This responsibility has been transferred to PWS Department as part of the Corporate realignment.

 

 

DISCUSSION

 

Opportunities Presented by "Cold Energy" Storage and Harvest

 

The potential of the "cold energy" stored in snow and ice cannot be denied.  Snow and ice are now categorized at an international level as an environmentally friendly, renewable source of cooling energy.  Cold energy technology reduces electricity cost and produces significantly reduced greenhouse gases.  Other environmental benefits include the ability to clean contaminated snowmelt water before releasing it back into the environment.  The challenge now is to develop efficient technologies to harvest the stored "cold energy".

 

As with all technologies in their early stages, research and funding support are required to develop efficient systems that can be competitive in the commercial market.  Developing "cold energy" technology that can reduce energy consumption, operating costs and greenhouse gas emissions is currently being pursued in several countries at this time.

 

Current "Cold Energy" Industry Status in North America

 

At the present time the current generation of "cold energy" technology is in its early stages of development with limited actual installations and limited resources available to advance its' development.

 

The local resources to assist in a feasibility study would likely be limited to Professor Frederick Michel, Director of the Institute of Environmental Science at Carleton University.  Snowpower AB, the Swedish company that is marketing the snow to energy cooling concept used at the Sundsvall Regional Hospital in Sweden, has contacted Hydro Ottawa and offered to provide assistance to undertake a study and/or project.

 

Expanding the feasibility study to incorporate thermal energy storage in addition to snow energy for cooling would increase the locally available resources.  There is moderate knowledge and experience with chilled water and ice storage systems in the contractor and engineering community in Ottawa and Southern Ontario.  Place Bell and National Research Council are two local buildings that employ thermal energy storage for load shifting.

 

Although ice and chilled water storage systems for cooling are a mature technology that has been around for decades, there has not been significant uptake on these systems for new or retrofit construction projects.  Potential barriers to this technology include:

 

·            Space limitations - either due to a lack of available space or thermal storage tanks taking up valuable leaseable floor area.

·            Greater initial capital costs over conventional chiller plants for low-temperature chillers and storage tanks, particularly for the smaller chiller plants that would be found in a single commercial building.

·            Relatively small benefit for the potential risk of trying a new system.  Ottawa's cooling season is relatively short and the energy used for cooling a typical office building is usually less than 15% of the building's total energy use.

·            Lack of comfort and/or awareness on the part of the engineering and contractor communities.

·            Lack of technical support for service of local systems.

 

Similar constraints also exist for the development and integration of "cold energy" snow storage systems.

 

Preliminary Opportunity Review

 

1.      Snow Disposal Facilities

 

As inventory of the City's main snow disposal facilities (SDF's) along with their size, location and surrounding neighbourhood is presented in the table below:

 

Name

Location

Size (2009 capacity in m3)

Surrounding Neighbourhood

Need for Cooling

 

Clyde

951 Clyde Avenue

650,000

Commercial / industrial

No significant demand

Conroy

3100 Conroy Rd.

810,000

Vacant land, hydro easement

No significant demand

Hunt Club

48 Antares Rd.

125,000

Commercial

No significant demand

Manotick

4244 Rideau Valley Dr.

50,000

Vacant land

No significant demand

Michael St.

1435 Michael St.

1,100,000

Commercial / industrial

No significant demand

Innes

Innes Rd. & Mer Bleue

225,000

Area not developed

n/a

Strandherd

Strandherd & Kennyvale

355,000

Area under development

n/a

Based on our preliminary review, there does not appear to be a demand for cooling in close proximity to existing SDF's.

 

2.      City Buildings

 

A review of the City's building inventory identified 100 Constellation Crescent as the building with the largest cooling requirement.  This facility has an average annual cooling requirement of 500,000 kWh with an associated annual electricity cost of $50,000.

 

Assuming that a cost-effective snow cooling system could be constructed with an 80% reduction in annual electricity costs, there could be an annual saving stream of $40,000 at current electricity prices.  Based on an assumed project cost of $750,000 this would result in a simple payback of 18.75.  This opportunity is further complicated by unavailability of land and anticipated public objection to a SDF in this area.

 

The financial model presented above is based on today's electricity and construction costs.  As market factors change and the cost of electricity rises, the business case for this type of technology should improve.

 

 

 

 

3.      Potential Application to a District Energy System (DES)

 

Snow energy for cooling or thermal energy storage systems has good potential to improve the economics of a district-cooling project.

 

·            The cooling capacity of a snow or ice storage system depends on the size of the storage facility.  It is possible that a DES with sufficiently sized snow storage could operate properly with a significantly smaller chiller plant than a conventional district cooling system.  While not cost-effective for a single building, the avoided capital costs on a large chiller plant (over 1,000 tons) could be significant.  The benefit of the avoided capital costs would have to be weighed against the potential risk of not having enough chiller plant capacity to meet the cooling load of the DES in the event that not enough snow is collected during a mild winter.

·            Until the deregulation of the electricity market in 2003, thermal storage systems only helped to reduce the monthly peak demand costs of a chiller plant by shifting load to off-peak hours.  Now, with the price of electricity being driven by market forces, electricity is significantly cheaper during low use periods at night, which should make thermal storage more economically attractive.  These savings would be in addition to the peak demand savings that would be achieved.

 

There are numerous local resources for DES in the Ottawa area that have developed along with the creation of Ottawa's numerous DES including Cliff Street, Tunney's Pasture, Algonquin College, Carleton University, Place de Ville and Confederation Heights.  Natural Resource Canada's District Energy Group and the Canadian District Energy Association have been active in promoting District Energy in Ottawa and across the country.

 

In 2003, Energy Ottawa partnered with FVB Energy to conduct a feasibility study of building a new DES in the downtown core.  The feasibility study found that despite the numerous systems in the Ottawa area, there are many barriers to overcome to attract clients to a DES including:

 

·            Commercial building owners/managers can be reluctant to enter into the long-term (20 year) contract that is typical for a DES as it may impact the ability to sell the building in the future.

·            Building owners/managers are reluctant to have all heating and cooling needs provided by a DES with no on-site backup.  This concern is related to redundancy of supply and the potential impact on selling the building at a later date.

·            Capital costs for a new chiller/boiler plant and operating costs for the same plant are traditionally treated as separate items by property owners.  It can be challenging to convince a potential client of the avoided capital costs that result from signing up with a DES.

·            Most existing buildings have chiller plants that have not reached the end of their expected life and signing up DES would result in stranded assets in the building.

·            The volatility of natural gas prices makes the economics of using combined heat and power (cogeneration) in the DES more uncertain.

 

 

 

 

PROPOSED PLAN OF ACTION

 

Proposed Partnerships and Feasibility Study

 

It is proposed the City of Ottawa, working in partnership with the Institute of Environmental Science at Carleton University and Energy Ottawa, undertake further research to review adapting "cold energy" in all of its various forms to the Ottawa area.  The review will undertake to advance the elements identified below with the goal of developing a cost-effective "cold energy" snow cooling system for 100 Constellation Crescent.  The proposed partnership will operate in a cooperative and supportive manner each researching and developing specific elements of the system.

 

The elements of the "cold energy" that need to be further understood and developed are listed below:

 

-            Snow storage and management - (Carleton University and City Operations)

-            "Cold energy" capture technology - (Design & Construction)

-            "Cold energy" transfer technology - (Design & Construction)

-            Melt water treatment standards and technology - (City Operations and Carleton University)

-            Competitive installation and operating costs (Energy Ottawa)

 

It is proposed the partners would meet once every month to discuss progress and update work plans.  The group will report their findings back to Council in the first quarter of 2010.  Larger scale applications could become the focus of later stages of research into adapting cold energy technology to the Ottawa environment.

 

Even though the current business case does not support the immediate application of snow or ice cooling technology, this type of a cooperative participation to advance this emerging technology for space cooling in the Ottawa area supports the City's continuous improvement and efficient service delivery approach.  Participation in this multi-party initiative to advance the application "cold energy" technology demonstrates community leadership, the pursuit of value for money, all of which will benefit the community in the long term.

 

Potential Funding Sources

 

It is proposed the City of Ottawa, Carleton University and Energy Ottawa would work together cooperatively to search out any available grants or subsidies that would be available to support this joint project.

 

 

CONSULTATION

 

The review of the feasibility of utilizing "snow cooling" to cost effectively cool City facilities came about as a direct result of a Council motion.  In follow up to the Council request, City staff have been working wil Energy Ottawa and Carelton University to carryout the preliminary analyis and evaluation.  No community consultation is required for this initiative at this time.

 


LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

This undertaking is progressing on a voluntary participation basis with no contractual connections between the participating parties.  There are no legal risks to the City as a result of this undertaking.

 

 

FINANCIAL IMPLICATIONS

 

There are no financial implications associated with this undertaking.  Existing City staff will include this initiative as part of their regular annual work plan.

 

 

DISPOSITION

 

That the working group lead by the City of Ottawa, working in partnership with the Institute of Environmental Science at Carleton University and Energy Ottawa, continue to research opportunities to apply cold energy storage technologies to reducing operating costs and greenhouse gas emissions associated with operating buildings within the City of Ottawa and that the working group report back to Committee and Council on the progress of this research within 1 years time.