Lulu Island Energy expansion of district energy system

Our Vancouver office advised Lulu Island Energy Company on the expansion and operation of its district energy system using a P3 (DBFOM) structure. The City Centre District Energy Utility Project will be operated by Corix Utilities. The project is funded through equity financing from Corix and C$175m (US$131m) of debt financing from the Canada Infrastructure Bank. Financial close was achieved on September 28, 2022.

The project will connect more than 170 new residential and mixed-use commercial development sites in the area by 2050, using low-carbon heat recovered from the Gilbert Road regional sewer system. When complete, the project is expected to reduce greenhouse gas emissions by one million tonnes by 2050, with the amount of connected space to the district energy system increasing tenfold to 50 million square feet. 

The CIB financing will enable the district energy expansion, which will drive economic benefits through new construction work and deliver an expanded sustainable energy network which will reduce the operating costs of property owners.

This project will support the City of Richmond, an award-winning leader in district energy systems, in meeting its Community Energy and Emissions Plan (CEEP) 2050 goals to achieve a 50 per cent reduction in community GHG emissions by 2030 and net-zero emissions by 2050.