Lonsdale Energy Corporation proposes new Sewer Heat Recovery Plant

The Lonsdale Energy Corporation (LEC) has unveiled plans for its first major decarbonization project, the Sewer Heat Recovery Plant. LEC will present the project at a council meeting today.

The plant will produce 5 megawatts (MW) of energy and is projected to reduce the system’s greenhouse gas (GHG) emissions by 40% in its first year of operation. The plant is scheduled to begin operations in early 2027, with construction starting in 2025. It will be located at 720 West 2nd Street on a previously vacant plot for storing construction materials.

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How it will work

The Sewer Heat Recovery Plant will operate by tapping into the heat in raw sewage flowing through the Metro Vancouver sewage system. Specifically, the plant will extract thermal energy from the North Vancouver Interceptor, a major sewage trunk line, before the wastewater reaches the North Shore Wastewater Treatment Plant.

Using high-efficiency heat pumps, the extracted heat will be elevated to a temperature of approximately 78°C (172°F) before being distributed through LEC’s district energy system, which provides space heating, cooling, and domestic hot water services to residential, commercial, and civic buildings across the city.

Currently, Lonsdale Energy relies heavily on natural gas to meet most of its system’s heating demands, with only about 14% of its energy in 2023 coming from low-carbon sources, such as geothermal, solar, and renewable natural gas. However, with the introduction of the Sewer Heat Recovery Plant, LEC anticipates that over 40% of its energy needs will be met by low-carbon sources in the first year of operation. This shift is expected to cut annual carbon dioxide equivalent (CO2e) emissions by 7,600 tons — comparable to taking approximately 2,700 cars off the road. Over the plant’s first 25 years, it is estimated to reduce emissions by more than 207,700 tons of CO2e.

Funding for the plant

The project has received a $17.5 million grant from the provincial and federal governments via the CleanBC Communities Fund, and BC Hydro is also contributing. LEC is pursuing further grants to support the project’s green energy outcomes. The remainder is sourced from commercial partners, including the Royal Bank of Canada (RBC). Additionally, LEC is finalizing a low-interest green energy loan to help finance the project.

Due to the substantial grant funding and high efficiency of the heat pumps, LEC says the project will have a limited impact on customer energy rates. The company plans to thoroughly review its rate structure in 2025, ahead of the plant’s commissioning. In the long term, LEC anticipates the project will provide cost stability as it reduces reliance on natural gas, which is expected to rise in price due to increasing demand and higher carbon taxes.

According to LEC report to council, the project also aligns with Lonsdale Energy’s long-term decarbonization targets. The company aims to source 40% of its energy from low-carbon sources by 2027 and 60% by 2030. By 2040, LEC expects to have reduced its total carbon emissions by 80%, to achieve net-zero emissions by 2050.

Traffic disruptions are expected during construction, particularly as sewer lines and other utility connections are laid along adjacent roads near the site, including West 2nd Street. LEC plans to minimize these disruptions with a traffic management plan developed in consultation with the city’s Engineering, Parks, and Environment departments.

Before construction begins, residents and businesses in the area will be informed about the project and any temporary inconveniences they might face. The company has also promised to address potential concerns about odours from the wastewater heat extraction process, stating that odour mitigation measures are being integrated into the facility’s design.

Once operational, the Sewer Heat Recovery Plant will support Lonsdale Energy’s efforts to provide affordable, low-carbon energy to its customers, which currently include 114 buildings and over 7,850 individual dwellings across North Vancouver.