Jason Naccarato called it the next step in making Sault Ste. Marie the alternative energy capital of North America.
But before moving forward with a district heating project, a pre-feasibility study needs to be done and city council approved $20,000 in funding for one at Monday's meeting.
Naccarato, an Sault Ste. Marie Innovation Centre employee, explained to council the Innovation Centre, Economic Development Corporation, PUC and Northshore Capital Partners wish to retain the services of an engineering consulting firm to determine the feasibility of developing a new combined heat and power generation plant (CHP) that will include district heating in the Sault.
He said it's similar to a traditional power plant facility where you have fuel going into an engine or turbine to create mechanical rotational energy and that energy is put into a generator where it's converted to electrical energy which can either be used in the facility or sent back to the grid.
Heat is also created which can be used to heat the potential building - on around five-acres of property - and sold off to other buildings.
"You're both selling power to the grid to earn revenue and creating savings with the by-product heat to heat local facilities," Naccarato said.
A CHP is expected to help reduce operating costs of facilities that participate by an estimated 10 percent and reduce greenhouse gas emissions by approximately 63 percent.
It is estimated to create short term 50 jobs in construction, five direct and 20 indirect jobs when the CHP is fully operational.
Naccarato said they will conduct a survey and identify potential buildings that could be connected to the direct heating system.
So far, they've already identified the Sault College campus, new Catholic high school, Sault Area Hospital and Great Northern Retirement home as potential options.
The CHP is the first project submitted under the Smart Energy Strategy; passed by council on March 5.
Naccarato said even if the project doesn't proceed past the feasibility study, it will provide valuable feedback for the city to consider when developing the city's energy assests and heating needs.
Total cost of the study is $54,740.
(Editor's note: Shown is an F. G. Wilson Combined Heat and Power package as found at the Direct Industry virtual industrial exhibition. It is used for illustration purposes only and not necessarily what the finished system would look like.)
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