Canada Infrastructure Bank (CIB) and Lulu Island Energy Co. have signed a memorandum of understanding, to develop a new district energy project in Richmond, British Columbia.
The new Lulu Island Energy district energy project involves expanding the city's current district energy systems from 330,000 square meters (3.6 million square feet) to more than 4.7 million square meters (50 million square feet) over time, conditional to approval by the Richmond city council.
The memorandum of understanding confirms CIB and Lulu Island Energy 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 United States.
In order to meet sustainability goals within its Community Energy and Emissions Plan, the city of Richmond 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.
Lulu Island Energy 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.
