1. District Heating & Biomass Presented By: Robert Doyle, FVB Energy Inc. March 16, 2016 1

2. FVB Energy Inc.  Robert Doyle, P.Eng., Chief Operating Officer  Employee owned consulting firm specializing in District Heating and District Cooling.  Swedish parent company established in 1970.  Canadian company established in 1992. Offices in Vancouver, Edmonton, Toronto & Ottawa Slide 2

3. District Heating Systems  What is District Energy?  Where is it being done?  How to make it work successfully with district heating?  Why are Communities Doing it? 3

4. District Energy  “ Community Scale” heating, cooling, and power generation undertaken to make efficient use of local resources to meet local needs. 4

5. General Concept Distribution System Energy Transfer Stations Building Hydronic HVAC District energy involves centralized approach to heating and sometimes cooling. Many possible technologies depending upon location and application Energy Centre Slide 5

6. Energy Flow Slide 6 Electricity Production Oil Biomass Natural Gas Geothermal Future Energy Sources Energy Centre(s) Commercial Industrial Residential Distribution Piping System

7. General Concept (Bridge to Renewable Energy)  Central Energy Centre Source of Heat for the Distribution System. Useable Energy sources:  Condensing Boilers  Cogeneration  Heat Pumps - Sewage  Biomass: forest waste, pellets, agricultural residues, 7

8. Energy Centres Strathcona County, AB Biomass & Condensing Boilers Truro, Nova Scotia Dalhousie University Slide 8

9. Energy Centres Charlottetown, PEI Wood & MS Waste Vancouver, BC Sewage Heat Pump Slide 9

10. Energy Centres Oujebougamou, QC Biomass Boilers Revelstoke, BC Biomass Boilers Slide 10

11. Distribution System  Hot Water Direct Bury Piping System(s)  Larger Systems: Direct bury, European standard EN253, Welded steel pipe, thin- walled, pre-insulated, c/w alarm system (up to 140 C and 1600 kPa)  Smaller Systems: Direct bury, pre-insulated flexible PEX pipe (Less than 95 C & 600 kPa, up to 100 mm nominal pipe diameter) 11

12. Distribution Piping Slide 12 Fort McPherson, Nunavut Above Ground NAIT, Edmonton Flexible PEX Calgary, Alberta Direct Bury Arviat, Nunavut Direct Bury in Frost Box

13. Distribution Piping Slide 13 Watson Lake, Yukon DH Pump House Revelstoke, BC Direct Bury Steel Piping

14. Energy Transfer Stations  Transfer Heat from System to Building  Heat Exchangers, Thermal Energy meters, & Controls  Minimal Space Required  Building Boilers No Longer Required Slide 14

15. Energy Transfer Stations Slide 15 High School ETS Hamilton, Ontario New Condo Markham, Ontario

16. Energy Transfer Station Slide 16 Town Hall ETS Strathcona County, AB Condo Fan Coil Markham, Ontario

17. Slide 17  Alberta  Okotoks – Solar Thermal, 2006  ENMAX Calgary – Boilers Only Future Cogeneration, 2010  Strathcona County – Condensing Boilers & Biomass, 2008  BC  Revelstoke – Biomass, 2005  NEFC Olympic Village – Sewage Heat Pump, 2010  Prince George – Biomass, 2011  Yukon  Watson Lake – Residual Heat from Power Plant, 1998 (?)  Whitehorse – Yukon College  Nunavut  Rankin Inlet – Residual Heat from Power Plant, 1998  Arviat – Residual Heat from Power Plant, 2000  Iqaluit - Residual Heat from Cogeneration, 2003 Operating Systems

18. Slide 18 District Heating with Biomass Size it Right! Understand your seasonal and daily load profile -Use historical fuel information to establish a seasonal profile -Biomass boilers do not change output like oil boilers -Do not oversize the boiler, 25 to 50% of peak demand (load) -Thermal storage tanks help level out the load profile associated with building heating

19. Slide 19 Understand your fuel! Biomass systems are made up of the following: fuel storage & handling, combustor, boiler, ash collection,and flue gas clean up. -To properly select your biomass system you have to understand your fuel. It impacts all of the systems. -Biomass combustors operate the best with fuel consistency. -“My experience “ – most biomass system problems relate to fuel handling and fuel consistency. Biomass Fuels

20. Slide 20 Design it for your situation & location Purchase a system with a proven track record & local support -District energy systems “must” provide reliable source of heat -When something breaks where does technical support and spare parts come from? Understand who will operate it -Biomass boilers require more operator intervention than oil boilers. -Provide proper commissioning and training Commit to proper maintenance budgets -Biomass boilers have more moving parts Proper Biomass System Selection

21. Why are Communities interested?  Provide Energy Stability Use of local resources More stable fuel prices District Energy offers more opportunities vs. individual buildings More adaptable to fuel flexibility  Protect Environment Energy Conservation Smart Use of Local Resources Reduce GHG emissions Opportunities to Manage Local Waste Streams  Capture Cash Flows in the Community  Building a more sustainable community Slide 21

22. Historical Barriers to CES  Low energy prices  Lack of capital & district heating systems are capital intensive  Economics – requirement for short term paybacks on energy investments  Lack of technical and business knowledge by companies, policy makers  Need for effective policy incentives to stimulate investment  Lack of buy in from “all” stake holders  Understanding of the true cost of energy production Slide 22

23. District Heating Linking energy users to sources of waste heat and renewable energy Slide 23

24. Thank you for your time! Slide 24