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Stockport Town Centre Heat Network: Feasibility Study Prepared By: Building Engineering Manchester City Council November 2013 Stockport Council Stockport Town Centre Heat Network: Feasibility Study Prepared by: ........................................................... Elena Olloqui ...................................... Principal Consultant ............................ Checked by: ........................................................... Approved by: ..................................................................... Andrew Turton Paul Woods Associate Director Technical Director Stockport Town Centre Heat Network: Feasibility Study Rev No Comments Checked by Approved Date by 1 Draft report ACT PSW 1/11/13 1 New York Street, Manchester M1 4HD Telephone: 0161 601 1700 Website: http://www.aecom.com Job No.: 60289952 Date Created: October 2013 This document has been prepared by AECOM Limited for the sole use of our client (the “Client”) and in accordance with generally accepted consultancy principles, the budget for fees and the terms of reference agreed between AECOM Limited and the Client. Any information provided by third parties and referred to herein has not been checked or verified by AECOM Limited, unless otherwise expressly stated in the document. The study presents feasibility results for a heat network in the Civic Quarter based on the assumptions set out in this document, but further work will be required to confirm the figures presented here and to design the scheme in detail. No third party may rely upon this document without the prior and express written agreement of AECOM Limited. Table of Contents Acronyms ................................................................................................................................................................................ 1 Executive Summary ................................................................................................................................................................ 2 1 Introduction................................................................................................................................................................ 6 2 Energy Demand Assessment .................................................................................................................................... 9 3 Energy Supply Options ............................................................................................................................................ 18 4 Network Layout Assessment ................................................................................................................................... 26 5 Economic and environmental assessment ............................................................................................................. 39 6 Delivery Options ...................................................................................................................................................... 50 7 Conclusions and Recommendations....................................................................................................................... 56 Appendices ........................................................................................................................................................................... 61 Appendix 1: Site visits and questionnaires’ information ..................................................................................................... 62 Appendix 2: Energy demand estimates for Grand Central redevelopment provided by Hannan Associates..................... 67 Appendix 3: Stockport Academy heat and hot water demand ............................................................................................. 73 AECOM Feasibility Study 1 Capabilities on project: Building Engineering Acronyms AGMA Association of Greater Manchester Authorities CCHP Combined cooling heat and power CHP Combined heat and power CO2 Carbon Dioxide CQHN Civic Quarter Heat Network CRC Carbon Reduction Commitment DE De-centralised Energy DEC Display Energy Certificate DECC Department of Energy and Climate Change DH District heating DHN District heating network DHW Domestic Hot Water EPC Energy Performance Certificate GIB Green Investment Bank GM Greater Manchester GMHNP Greater Manchester Heat Network Programme HIU Hydraulic Interface Unit IAG Interdepartmental Analyst Group (government group which produces projected energy costs and carbon emission factors to inform policy development) IRR Internal Rate of Return JV Joint Venture (generally refers to the Joint Venture proposed between AGMA and GIB) kW Kilowatt kWe Kilowatt electric kWh Kilowatt hour kWth Kilowatt thermal MCC Manchester City Council MW Megawatt MWe Megawatt electric MWh Megawatt hour MWth Megawatt thermal NPV Net Present Value PHE Plant Heat Exchanger AECOM Feasibility Study 2 Capabilities on project: Building Engineering Executive Summary Background This report has been prepared by AECOM consulting engineers at the request of our client, Manchester City Council (MCC) and for Stockport Metropolitan Borough Council. AECOM has been commissioned by MCC on behalf of the Association of Greater Manchester Authorities to produce feasibility studies, business cases, and project development plans for a Manchester Civic Quarter Heat Network (CQHN), a network in Oldham town centre, and a network in Stockport town centre. This report examines the options for Stockport Town Centre and forms the network feasibility study. A previous feasibility study of this part of Stockport has been carried out and this study builds upon this earlier work. Heat Loads Fundamental to developing a DH scheme is a committed customer base willing to sign long-term heat purchase contracts. Typically these are for buildings controlled by the public sector, often termed ‘anchor loads’. Although a number of heat loads have been identified suitable for connection to DH there are uncertainties surrounding many of them. The identified loads are listed in Table 1 below and are grouped as: x Civic Buildings Cluster x Grand Central Cluster x College Cluster The Mottram Street flats close to these clusters are already supplied with DH and a biomass boiler is being installed with financial support from the ECO scheme. Whilst this may form part of a wider network at a later stage no benefit was found for connecting to the DH scheme analysed for this report. AECOM Feasibility Study 3 Capabilities on project: Building Engineering Table 1: Summary of Heat Loads MWh Heat Load Comment p.a. Civic Buildings Cluster Town Hall 1168 Committed load Stopford House 1039 Committed load Fred Perry House 302 Committed load – supplied from Stopford House Archer House 617 HMRC staff vacating – new tenant being sought – future uncertain This area is subject to re-development or refurbishment in 3-5 years time and it Covent Garden flats (49No) 518 would be best to connect at that time as the load is small and 500m away Police Station Police are expected to vacate – future uncertain Dept Work and Pensions PFI contract – difficult to negotiate a change of energy supply Retail store In administration – future uncertain Mottram St flats Standalone biomass boiler scheme – no benefit in connecting at present Grand Central Cluster GC Swimming pool 2976 Has had existing CHP and good case for replacement or connection to DH GC development – offices Timing of development uncertain – could provide an Energy Centre site GC development – hotel Timing of development uncertain College Cluster Existing College buildings supplied from Roland Hadlow Existing College buildings supplied from Joan Bakewell New college development on PCT Timing uncertain – could provide an Energy Centre site site Definition of schemes Given the uncertainty of the heat loads it is proposed that the DH scheme is developed in stages. The first stage termed the Phase 1 Starter Scheme will comprise only the buildings close to the Civic Centre and will use space within existing buildings for the energy plant. We have then analysed Phase 2 of the DH development and considered three options for this development: x Option A) The Phase 1 Starter Scheme plus the Grand Central Cluster and Covent Garden with an energy centre at Grand Central. x Option B) The Starter Scheme plus the College Cluster using decentralised boilers and CHP units x Option C) The Starter Scheme plus both the Grand Central Area and the College Cluster with an energy centre at the College x Option D) As in option C, but with the energy centre located at Grand Central. AECOM Feasibility Study 4 Capabilities on project: Building Engineering The proposed DH scheme for Option D) is given in Figure 1 below assuming an Energy Centre located at the Grand Central development (College site is an alternative option as in option C). Figure 1: Network layout for option D with the energy centre at Grand Central. Comparison of heat sources A review of available technologies for producing low carbon and lower cost heat has been carried out. It concluded that the most practical and established technologies were gas-fired CHP and biomass boilers. The use of biomass is supported by the Renewable Heat Incentive however the level of the RHI and its availability are uncertain into the future. Biomass also requires additional space for fuel storage. The comparison showed that gas-fired CHP provided a better economic case but the biomass option provides the grater carbon saving. The remainder of the analysis used the gas-fired CHP option but it is possible that as the scheme is developed biomass heating could
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