Guelph Hydro Partners With Dalkia Canada to Develop District Energy Projects in Guelph

Guelph Hydro Inc. and Dalkia Canada to work together to bring 28 MW of clean, efficient, local power generation to Guelph

(GUELPH, ON) January 19, 2011- Guelph Hydro Inc. and Dalkia Canada have signed an agreement in principle to develop three combined heat and power (CHP)/district energy (DE) projects that have the potential to bring 28 megawatts (MW) of clean, efficient, local power generation to the City of Guelph and provide momentum for the City of Guelph's Community Energy Initiative.

When electricity is generated at large, centralized power stations, about 60 per cent of the primary energy in fuel is wasted as heat that is generally exhausted to the atmosphere. By generating electricity in unobtrusive, combined heat and power plants in urban centres, heat that would otherwise be wasted can be harnessed and distributed to buildings as hot water or steam through underground district heating pipes. In the summer, using absorption chillers, cool water can be fed through the underground pipes for district cooling.

The three combined heat and power projects, which include the New Hanlon Business Park and two other sites currently under negotiation, will be developed jointly and submitted under the Ontario Power Authority's (OPA) Clean Energy Standard Offer Program.

The OPA's mandate is to ensure that Ontario has a reliable and sustainable electricity system using a diversified supply mix. The OPA is working under a recent directive by the Ontario's Minister of Energy to strategically integrate 500 MW of combined heat and power projects into Ontario's electricity system. This will supplement the approximately 450 MW of combined heat and power the OPA currently has under contract in the province.

QUOTES
"This is exactly the kind of initiative the government's Green Energy Act and Long-Term Energy Strategy actively promotes. Ontario is becoming a world leader in green energy because we are encouraging broad partnerships that focus on innovation and economic output, and Guelph stands to benefit from this enormously. I'd like to thank Energy Minister Brad Duguid and Guelph MPP Liz Sandals for their work in creating a strong climate for energy investment so that these types of partnerships can come together. By assisting the Guelph Community Energy Initiative, this partnership will allow Guelph to be a key piece of Ontario's new green economy and create a clean and sustainable energy future."
Dave Levac
MPP Brant and Parliamentary Assistant to the Ontario Minister of Energy

"Combined heat and power plants, which are very popular in Europe, are all about conserving fuel, increasing energy efficiency and reducing our carbon footprint. We are delighted that Dalkia, Europe's leading energy services company and the largest operator of district energy systems worldwide, has chosen to partner with Guelph Hydro, invest in the Guelph community and help build a sustainable energy future for Guelph."
Barry Chuddy
CEO, Guelph Hydro Inc.

"The Community Energy Initiative published by the City of Guelph shows that the City is determined to reduce energy consumption and greenhouse gas emissions, and move towards a more sustainable approach to the use of energy. Dalkia is very pleased to have the opportunity to use its worldwide expertise in combined heat and power, district energy systems and renewable energy to help the City to meet these objectives."
Xavier Pietri
President, Dalkia Canada

"The fact that Guelph Hydro and the Guelph community have been able to attract the interest of Dalkia, a company that owns and manages the largest portfolio of district energy networks in North America, is a testament to Guelph Hydro's sustainable energy strategy and the viability of the plans laid out in the Community Energy Initiative. With Dalkia in place as a strong, experienced partner, the development of district energy projects in Guelph will be accelerated, bringing jobs to our community and helping drive us to achieve our goal of a more affordable and sustainable energy future."
Karen Farbridge
Mayor of Guelph, Ontario

ABOUT DALKIA
Dalkia is a global energy, utilities and facilities management group operating in over 118,000 customer facilities in 42 countries with an annual turnover in 2010 of CAD $10 billion. Dalkia provides these services to the whole spectrum of business including educational facilities, hospitals, commercial buildings, sports and leisure centres, industrial sites and district heating and cooling systems.

Dalkia's business model is to optimize energy production and consumption, thereby reducing greenhouse gas emissions, by developing, building, and operating new energy systems including combined heat and power, district energy, and replacing the use of fossil fuel with renewable energy sources.

Across North America, Dalkia owns and manages the largest portfolio of district energy networks in such cities as Montreal, Philadelphia, Baltimore and Boston. Dalkia's 16 urban district energy networks include 25 central utility plants with a capacity of 13 million lb/hr steam, 260 megawatts of electricity generation from combined heat and power systems, and 170,000 tons of chilled water. These plants serve the requirements of more than 1,350 customers covering 300 million square feet of building space.
For more information visit www.dalkia.ca

ABOUT THE CITY OF GUELPH
Located in one of the strongest economic regions in Canada, Guelph is the ideal destination for companies to access major markets and customers. Guelph is a vibrant, growing, historic community of over 118,000 residents offering an educated work force, established economic base and an outstanding quality of life.

Guelph offers competitive land and building development and business operating costs partnered with a variety of employment lands and buildings available to meet most business needs as well as fully interconnected and scalable telecommunication network and services.
For more information visit www.guelph.ca

ABOUT THE CITY OF GUELPH COMMUNITY ENERGY INITIATIVE
The Community Energy Initiative (formerly Community Energy Plan) is Guelph's commitment to use and manage energy differently, and better, than it has in the past. The initiative is also intended to attract quality investment to the city. After all, experts agree that a reliable, sustainable energy supply is and will continue to be a key ingredient in the long-term competitiveness and prosperity of cities.

Guelph leaders formed a Consortium to proactively develop a community energy plan in 2004. In 2006 the Consortium formalized a long-term Community Energy Plan (CEP) which would guide the city's energy future for years to come. The CEP team had a mix of local and global expertise ensuring the plan incorporated the best elements of urban energy management from around the world. Today, Guelph's Community Energy Initiative is regarded as a model for cities seeking an integrated, community-based approach to energy use and greenhouse gas reduction.

The goals of the Community Energy Initiative are as follows:
 Use less energy in 25 years than the City does today
 In 15 years, 25 percent of our energy will come from renewable sources
 Consume less energy per capita than comparable Canadian cities
 Produce less greenhouse gas per capita than the current global average

For more information visit http://www.guelph.ca/living.cfm?subCatID=1548&smocid=2127