Shoreham Harbour District Energy Feasibility Study Part 1 Report
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Shoreham Harbour District Energy Feasibility Study Part 1 Report The Carbon Trust is a world-leading organisation of 200 independent experts helping businesses, governments and the public sector to accelerate the move to a sustainable, low carbon economy. Our team of decentralised energy experts has extensive experience of supporting the public sector and private developers to bring heat network projects from concept through to construction, providing financial modelling, business model, stakeholder management, planning policy and technical support. We are active in a number of areas to unlock barriers and accelerate the deployment of heat networks and a member of the District Energy in Cities Initiative, a global SE4ALL accelerator programme. We operate at a world- wide level, with offices in London, Beijing, Johannesburg and Mexico City. Sustainable Energy Ltd was formed in 1998 to provide independent consultancy in the renewable and low carbon energy sector. Sustainable Energy specialises in district heating, cooling and power projects. They have provided heat mapping, energy masterplanning, heat network design and impartial technical support throughout installation and commissioning for over 50MW of both urban and rural district heating schemes. They have worked on district energy projects for a wide range of clients including Government departments, Local Authorities, Universities and large commercial clients. March 2018 Prepared for: Adur District Council Department for Business, Energy & Industrial Strategy Prepared by: Emma Ashcroft, Carbon Trust Dr Tanja Groth, Carbon Trust Charlie McNelly, Carbon Trust Dr Gabriel Gallagher, Sustainable Energy Lee Evans, Sustainable Energy Omied Khakshour, Sustainable Energy Dr Penny Challans, Sustainable Energy Adrien Grubb, Sustainable Energy Cover image is sourced from Pexels.com under the Creative Commons Zero licence. CONTENTS Executive Summary .................................................................................................................................................... 8 Work Package 1 .......................................................................................................................................................... 13 1 Introduction ................................................................................................................................................................. 13 2 Stakeholder Engagement ..................................................................................................................................... 16 3 Energy Demand Assessment .............................................................................................................................. 17 4 Energy Source Assessment ................................................................................................................................. 36 5 Network Route Assessment ................................................................................................................................ 45 6 Recommended Scheme Options ....................................................................................................................... 52 7 High Level Financial Appraisal........................................................................................................................... 68 8 Initial Business Model Options Evaluation ................................................................................................. 70 9 Sensitivity Analysis, Risks and Issues .......................................................................................................... 76 10 Key Assumptions .................................................................................................................................................... 87 11 Conclusions ................................................................................................................................................................ 89 Appendices .................................................................................................................................................................... 94 Appendix 1 – Energy Demand Assessment .................................................................................................... 94 Appendix 2 – Potential Energy Centre Locations ..................................................................................... 104 Appendix 3 – Plant Room Surveys .................................................................................................................... 105 Appendix 4 – Technology Assessment ............................................................................................................ 107 Appendix 5 – Key Parameters and Assumptions ...................................................................................... 112 Abbreviations ADC Adur District Council ADE Association for Decentralised Energy AHU Air handling unit AQMA Air quality management area ASHP Air source heat pump BEIS Department of Business Energy and Industrial Strategy (incorporating DECC) BMS Building monitoring system CAPEX Capital expenditure CHP Combined heat and power CHPQA Combined heat and power quality assurance CIBSE Chartered Institute of Building Services Engineers DEC Display Energy Certificate DHW Domestic hot water DNO Distribution Network Operator EfW Energy from Waste GPR Ground penetrating radar GSHP Ground source heat pump HDPE High density polyethylene HIU Heat interface unit HNCoP Heat Networks Code of Practice HNDU Heat Network Delivery Unit IRR Internal rate of return JV Joint Venture kWh Kilowatt hour LDF Local development framework LDO Local development order LTHW Low temperature hot water MSHP Marine source heat pump MTHW Medium temperature hot water MWh Megawatt hour NPV Net present value PFD Process flow diagram PHX Plate heat exchanger PICV Pressure independent control valve PPA Power purchase agreement PRV Pressure relief valve RFI Requests for information SCR Selective catalytic reduction SE Sustainable Energy Limited SPD Supplementary planning document WP1 Work Package 1 WP2 Work Package 2 WP3 Work Package 3 WSHP Water source heat pump List of Figures Figure 1 Abstraction and discharge point for Western Harbour Arm network ................................................. 9 Figure 2 Selected Heat Network Route ......................................................................................................................... 10 Figure 3 Average rank of project objectives ............................................................................................................... 16 Figure 4 Energy demand assessment area .................................................................................................................. 18 Figure 5 planned development within proposed feasibility study area ............................................................. 22 Figure 6 Annual heat demand profile for Free Wharf - Residential .................................................................... 23 Figure 7 Summary of annual heat demand profile for free wharf - residential ............................................. 24 Figure 8 Daily heat demand profile for Free Wharf - Residential, Wednesday 3rd January 2018 & Wednesday 1st August 2018 .............................................................................................................................................. 24 Figure 9 Annual electricity demand profile for Pond Road - Health Centre .................................................... 25 Figure 10 Heat Demands - West ..................................................................................................................................... 26 Figure 11 Heat demands – East ....................................................................................................................................... 27 Figure 12 Heat demand categorisation ......................................................................................................................... 30 Figure 13 Electricity demands - West ............................................................................................................................ 31 Figure 14 Electricity demands - East ............................................................................................................................. 32 Figure 15 Electricity demands categorisation ............................................................................................................. 34 Figure 16 Cooling demands ............................................................................................................................................... 35 Figure 17 Potential energy centre locations ................................................................................................................ 37 Figure 18 Former civic centre site - GSHP arrangement ........................................................................................ 40 Figure 19 BEIS Carbon Emissions Projection .............................................................................................................. 40 Figure 20 BEIS Price Projections, January 2018 ....................................................................................................... 41 Figure 21 Potential water abstraction locations ......................................................................................................... 43