The first plant is to supply power and heat for Polycon Industries’ auto parts manufacturing facility, generating 8 MW to be used in production work, and covering most of the facility’s typical 10 MW-12 MW use.
Energy minister Bob Chiarelli said at a press conference that the cogen plant will save Polycon CA$2 million per year. Ontario’s Power Authority is to fund up to 40% of the plant’s cost, or up to CA$7.1 million.
The plant is set to be completed in 2015.
The second plant, to be built in the city’s Hanlon Creek Business Park by end 2016, will be operated by Envida Community Energy, a subsidiary of Guelph Hydro.
It will produce 10.2 MW which will be fed to the grid under a 20-year contract with the Power Authority, while the excess heat will be used in the city’s new district energy system, which came online late last year.