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Wed November 20 2019

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Engie secures heating deal for £1bn Edinburgh development

28 Oct Engie has won a £90m long-term contract to provide low-carbon heat to all homes and businesses at the £1bn Edinburgh St James development.

An on-site combined cooling, heat and power (CCHP) energy centre will be built to meet the development’s energy needs.The 33-year partnership will develop and operate a new low-carbon energy scheme designed to provide all homes and businesses at the site with affordable heat and chilled water for cooling, where needed. It is is intended to offer substantial savings in terms of capital and operational expenditure; save occupiers the costs of on-site plant provision; and encourage sustainability and recycling by using electricity generated from the energy centre to supply power elsewhere.

Engie said that CCHP typically has an energy efficiency of over 80% compared with 56% for a more conventional system. In addition, allowance has been made for expansion of the service into other sustainable technologies as they are developed.

The new energy centre is a part of the Growth Accelerator Model (GAM) agreement between Edinburgh St James, the Scottish government and the Edinburgh Council.

Engie has been working closely with Edinburgh St James since 2016 when it was appointed preferred bidder, to agree future sustainable energy proposals for the site. Under the terms of the new partnership, Engie will design and fit out a basement energy centre and adopt the district heating and cooling network from Edinburgh St James and provide ongoing operation and maintenance.

Andrew Hart, managing director for Engie’s Urban Energy business, said: “This hugely significant project will be transformational for the city of Edinburgh.  We have been involved in conversations surrounding the future of the scheme for several years so it’s fantastic to have agreed our part in bringing it to fruition.

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“Too often, energy is an after-thought when it can bring remarkable benefits to a scheme of this size.  The fantastic thing about Edinburgh St James is that they saw very early on, how important a factor this would play in the successful delivery of the scheme. It will also play a role in supporting City of Edinburgh’s target of net zero carbon by 2030.”

Martin Perry, director of development at Edinburgh St James, said: “It became clear from the outset that Engie’s commitment to cost-savings in a low carbon environment aligned with ours, CEC and the Scottish government’s aspirations for our existing and future partners, residents and occupiers within the development.

“This deal marks another milestone on the road to completing this transformational project for Edinburgh. To have been fortunate enough to agree a partner of the quality of Engie takes us another step closer to the project completion and we look forward to a long and successful relationship with one of the very best energy centre operators in Europe.”

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