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Enmax Selling Downtown District Energy Centre for $27M — Nearly $5M Less than it Cost to Build

By District Energy posted 11-09-2020 09:55

  

Calgary Herald

Summary

Enmax Corp. has reached a deal to sell its downtown District Energy Centre to a U.K.-based clean energy company

The $27-million deal with Atlantica Sustainable Infrastructure PLC — a publicly traded sustainable infrastructure company that owns and manages renewable energy, efficient natural gas, transmission and transportation infrastructures around the world — was announced by the city-owned utility Friday.

Located on the southwest corner of 4th Street and 9th Avenue S.E., Enmax’s District Energy Centre was built in 2010 at a cost of $31.8 million, with contributions from federal, provincial and municipal governments. It provides heating and hot water services to approximately six million square feet of commercial and residential buildings in Calgary’s downtown core and East Village, generating 55 megawatts (MW) of thermal energy and connecting to customers through a network of insulated underground pipes.

The facility was conceived as an opportunity to create a greener energy footprint in downtown Calgary, said Davin Kivisto, Enmax’s interim CFO, in an interview.

Kivisto said by selling off the asset, Enmax is choosing to place its focus on its core business, essential electricity services.

“It (District Energy) is a very small percentage of our asset base, it’s under half a percentage of our assets. It’s not core to what Enmax does,” he said. “We’re very proud of the design and build of the way it is now, but to take it to the next level, you really need someone who’s really active in the space and that’s not our core strategy.”

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#ENMAX
#Canada
#DistrictEnergy
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