Ottawa, June 5, 2019—Innovate Energy, a consortium consisting of ENGIE Services Canada, PCL Constructors Canada, PCL Investments Canada and Black & McDonald, has recently closed a 35-year public-private partnership contract to modernize, maintain and operate the district energy system that heats 80 buildings and cools 67 buildings, including the Parliament Buildings, in Canada’s capital region. This mandate is part of the Government of Canada’s Energy Services Acquisition Program (ESAP) and it will contribute to the Government’s goal to reduce its energy consumption and greenhouse gas (GHG) emissions from its own operations by 40% by 2030.
Innovate Energy had been identified as the preferred proponent because of the consortium’s unique expertise, innovative approach and capacity to modernize and operate the district energy system at the best quality-price ratio for Canadian taxpayers. Signature elements of the project include making the existing heating system safer and less energy consuming by converting it from steam to low temperature hot water; building and decommissioning plants; upgrading existing facilities in Ottawa and Gatineau, including the Cliff plant near the Parliament; and switching from steam to electric chillers. In addition, the Government of Canada placed restrictions on the use of long-term private capital which required PCL Investments to structure the project in a way not done before in the Canadian PPP market. This structure also required PCL Investments and TD Securities, as financial advisor, to create an innovative approach to the financing structure.
“It is an honour to partner with the Government of Canada. We are passionate and determined to help them reach their goals to lead by example through the decarbonization of its operations,” said Innovate Energy’s Kevin Skinner.
From 2019 to 2025, Innovate Energy will design, build and convert the existing high temperature steam system to a more energy-efficient low temperature hot water system while continuing to provide heating and cooling by operating the existing facilities. Once the construction period is completed, Innovate Energy will operate and maintain the new system through to 2055.
“ENGIE is pleased to have the opportunity to leverage the operation and maintenance expertise acquired as a leader in the international DHC market to benefit the Government of Canada,” stated Gwenaëlle Avice-Huet, ENGIE Executive Vice-President and CEO of the Group’s North America Business Unit.
About Innovate Energy
ENGIE Services Canada, PCL Constructors Canada, PCL Investments Canada and Black &McDonald have been partners in the past. Each has the expertise required to fulfill their respective parts of the mandate. By combining their resources and experience, the partners are confident they will deliver a unique, groundbreaking system that will make the Canadian government a world leader in the fight against climate change and the race to net zero carbon emissions.
ENGIE Services Canada
ENGIE Services Canada is a facilities management solutions provider that prioritizes energy efficiency for private and public customers across North America. Our experts design, develop and manage smart, sustainable solutions for customers who trust ENGIE Services’ tailored solutions and specialists to operate and maintain their office towers, airports, hospitals, recreational and industrial facilities. ENGIE Services has both the structure and resources to carry out technically and financially complex and long-term projects. This capacity enables us to guarantee results and manage asset lifecycles to meet specific performance criteria with a focus to rationalize energy use and reduce operational costs.
ENGIE Services Canada is part of the ENGIE Group that operates more than 320 district heating and cooling networks in 20 countries including the UK, France, Italy, Spain, Netherlands, U.S., Portugal, Malaysia, the Philippines and in the member countries of the Gulf Cooperation Council. The ENGIE Group leads the top ten players in the DHC world market.
PCL Constructors Canada
PCL is a group of independent construction companies that carries out work across the United States, Canada, the Caribbean, and in Australia. These diverse operations in the civil infrastructure, heavy industrial, and buildings markets are supported by a strategic presence in 31 major centres. Together, these companies have an annual construction volume of $8 billion, making PCL one of the largest contracting organizations in North America.
PCL Investments Canada
Created in October 2014 to deepen its commitment to the North American PPP/AFP market by expanding its traditional design-builder role to include investing in projects as an equity member. PCL Investments first equity investment was the Milton District Hospital DBFM project, which closed in 2015 with a $270 million capital cost. Since then, the company has added eight more projects to their equity investment portfolio including: Stoney Transit Facility (Calgary), Winnipeg BRT, Mackenzie Vaughan Hospital (Toronto), Abbotsford Law Courts (BC), CONRAC (LAX), ESAP (Ottawa) and CAMH Phase 1C Redevelopment (Toronto).
Black & McDonald
Black & McDonald is an integrated, multi-trade service provider that safely delivers high quality construction, facilities management, and technical solutions.
With nearly 100 years of diverse market experience across North America, we are a forward-thinking organization with a strong track record of delivering customer-focused solutions and operational excellence.
We have the breadth of experience, capabilities, and resources to oversee full project and asset lifecycles from design and build through to maintenance and management. Across all our lines of business, our mission is to do work and build relationships that stand the test of time.
Black & McDonald Capital
Recently, B&M Capital was formed to participate and provide financing solutions for Canadian AFP projects. B&M entities have participated on several PPP/AFP pursuits including being shortlisted in a similar capacity. With offices in over 26 locations across North America, B&M and B&M Capital’s team includes professional staff of over 900 experienced professionals in Canada (over 1,200 North America) and self-performing craft labour of 3,700 in Canada (over 4,700 North America) across the finance/commercial, design & construction, facilities operations and asset management disciplines.