Steeves and Rozema Group recently commenced construction of the first phase of Landmark Village, a new 123-unit residential retirement community on approximately seven acres bordering the Howard Watson Nature Trail near Exmouth Street and Lambton Mall Road in Sarnia, ON.

Landmark Village will provide an extensive array of services and amenities in a comfortable, unique setting including features such as a great hall for dining, café, lounges, a spa and fitness area, theatre, dedicated chapel, demonstration kitchen and activity spaces in addition to the residential suites. The size of the development as well as the range of amenities incorporated into the 125,000 square foot building presented both challenges and opportunities.

In the design phase, Steeves and Rozema set out to minimize the environmental imprint of Landmark Village, including the goal of possible Green Globe certification as an energy efficient, environmentally friendly building. In addition to energy efficient lighting and building envelope measures, the design team investigated the possibility of implementing geothermal heat pump technology for heating and cooling. It was recognized as essential that the system provide a comfortable environment, including individual climate control in each of the suites to meets the needs of residents.

Geothermal energy has been in use for centuries, going back at least as far as the ancient Greek and Roman civilizations. In recent years, geothermal sources have become more prevalent in residential housing, and in Europe, entire towns have had access to geothermal energy since the 1970s. Like many emerging alternative energy sources, capital costs and imperfect technology have been a barrier in the past but rising energy costs and public concern for the environment have contributed to the development of alternative technologies.

In Sarnia-Lambton, there are several examples of geothermal systems installed in schools during the early 1990s, and a growing number of homes have geothermal heat pump technology. Larger scale use of geothermal technology is happening in places like London where the Sisters of St. Joseph recently built a LEED-certified building, incorporating geothermal. The Landmark Village geothermal installation represents a unique opportunity to develop a cost-effective hedge against rising energy costs, while at the same time stimulating interest in alternative energy systems in larger-scale housing developments.

Geothermal systems represent a significant up front investment, primarily because of the cost of the closed-loop ground exchange system, which in the case of Landmark Village comprises more than 20,000 linear feet of vertical boreholes drilled through clay and into the shale beneath. The added cost over a conventional system is estimated at more than $600,000. Capital costs were justified by the projected annual savings in electricity and natural gas costs, providing a return on investment of 12%, significantly higher than the capitalization rate for the project itself. There are additional operating and maintenance cost savings that, if realized, will have the added bonus of reducing the payback period for the investment to less than five years at current energy rates.

In addition to the identified reductions in energy consumption, the geothermal system will offer other cost benefits, including reduction in mechanical space and roof top openings, corresponding increases in living space, longer life expectancy for equipment, and quieter operation as compared to conventional systems. The reduced energy load requirements also allow for the design of a generator backup system that supports the entire building in the event of a power disruption, meaning that residents do not face the inconvenience of power outages. Conventional systems are typically configured with only limited emergency power back-up because higher peak demand loads require substantially larger generator capacity.

In the course of designing the project, S&R is also looking at any measures that combine the goals of energy efficiency and comfort. The system will collect heat from sources such as condensers and motors, and will allow for the most efficient and comfortable heating and cooling zones, in order to control for the effects of solar gain. Landmark Village will open in the late fall of 2008, with model suites open in the summer.

Patrick McCarthy (patrick_mccarthy@snr.on.ca) is CEO of the Steeves & Rozema Group of Companies.

FUNDING KEY TO ONTARIO’S ROLE IN TRANSITION TO HYDROGEN AGE
by Terry Kimmel

Awareness is growing in Canada about the prospect for transformational changes in the energy sector. This has been brought on by environmental pressure and the global growth in demand for energy (expected to increase by 50% over the next 25 years).

These changes will involve adopting a wide range of new energy sources assisted by “carbon-free” energy carriers such as hydrogen. Since transportation contributes greater than 25% of Canada’s greenhouse gas emissions (GHGs), the use of hydrogen instead of gasoline could deliver significant carbon dioxide (CO2) reductions.

While transportation is an important potential application for hydrogen as an energy carrier, members of the Canadian Hydrogen Association (CHA) are also involved in the development of hydrogen systems that include methods for producing, storing, transporting, distributing and using hydrogen as an industrial chemical as well as an energy carrier. It is about creating a hydrogen infrastructure that is sustainable, affordable and environmentally benign and that will evolve by making hydrogen systems more sustainable. Hydrogen production in the oil sands, for example, is expected to triple over the next decade.

ONTARIO CAN LEAD: Ontario has the potential to lead Canada in a transition to the hydrogen age. The Montreal to Windsor corridor, through a significant percentage of Canada’s population and through a more significant percentage of our GDP production, offers an opportunity to engage first mover companies in market development initiatives.

The Hydrogen Village in the Greater Toronto Area is one such market development effort. It involves the deployment of hydrogen and fuel cell technologies within a defined geographic area driven by an end-user community. Today there are other hydrogen energy projects conceived in the province that include hydrogen fleet vehicles (both hydrogen internal combustion engine vehicles and natural gas/hydrogen blend engines), several hydrogen fueling stations, a hydrogen GO Train, wind to hydrogen projects, and hydrogen production from biomass. To deliver these projects, the industry needs funding support and/or incentives from provincial and federal governments. For a modest amount of money by most investment standards, Ontario can take a global leadership position in entering the hydrogen age and at the same time contribute significantly to a reduction in CO2 production.

As early as 1905, the production of hydrogen from electricity was proposed by A.T. Stuart for the development of Niagara Falls. Fifty years later, he and his son Alexander established the Electrolyser Corporation, a world leader in producing hydrogen and oxygen by electrolyzing water. Electrolyser later became Stuart Energy and that company was acquired in 2004 by Hydrogenics Corporation. Nuclear energy has been used in Ontario for over 40 years and contributes to 50% of our electricity supply. Together these technology developments, nuclear and electrolysis, can be used to supply hydrogen to meet Ontario’s demand for hydrogen energy.

CANADIAN SCENE: Canada produces over 3 megatonnes (Mt) of hydrogen per year and is the largest per capita producer of hydrogen in the OECD. Hydrogen is a major chemical feedstock in Canada; most notably it is used to upgrade fossil fuels and to produce ammonia (fertilizer). We have used hydrogen safely in industrial applications for over 100 years in this country. Hydrogen is currently produced from natural gas with the unfortunate consequence of producing CO2 as an emission. However this CO2 being fairly pure can be captured and sequestered by injection into old oil and gas fields and can be used to extend conventional oil reserves in enhanced oil recovery processes. Our history, experience, technology and knowledge of producing and handling industrial hydrogen will help Canada be a leader in the transition to the hydrogen age.

ENERGY CARRIER: Hydrogen is an effective means of capturing and storing electricity so that that we can use it at another time and in another place. In the context of fossil energy resource, think of it as a fossil energy carrier where we have removed the CO2. As an energy carrier it forms the link between energy sources and energy services. In this way electricity and hydrogen are kindred spirits. Both hydrogen and electricity can be manufactured from any energy source. They are both inter-convertible (hydrogen can be made from electricity and electricity from hydrogen) and both are renewable.

SOURCES: Electricity is produced from fossil fuels like coal, natural gas and oil through combustion processes, and from renewable sources like hydroelectric, wind and solar. And, it can be produced by nuclear. Therefore hydrogen can be produced from these primary energy sources. Hydrogen is independent of the source used to produce it and can be manufactured from any energy source. To transition to the hydrogen age, we need to find sustainable, environmental and economical ways to make hydrogen. This means moving away from fossil fuel- based production where we can’t, capture and sequester the carbon dioxide (CO2).

THE FUTURE: In Canada, we have technology companies that can build hydrogen systems and infrastructure. We have over 100 companies involved in producing, storing, transporting and distributing hydrogen and in developing applications like hydrogen internal combustion engines and fuel cells. And we have all the primary energy sources for producing hydrogen. We also have the capacity to produce hydrogen from sustainable resources like hydroelectric, wind, solar and nuclear. While producing hydrogen from fossil fuels produces CO2, Canada is building technical strength for carbon dioxide capture and has significant geological capacity for carbon sequestration.

WHAT ABOUT NUCLEAR?: If we are to transition to the hydrogen age we will need large amounts of hydrogen. The usual alternative energy sources will not be able to match demand with supply. With nuclear we can use intermittent production at off-peak prices to produce large amounts of price competitive hydrogen. This is a near-zero source of CO2. Look at what Bruce Power is proposing for Alberta, a nuclear reactor in the oil sands. This has been considered for many years as an ideal solution for matching electricity demand with industrial hydrogen demand. That same nuclear, electricity, and hydrogen mix can play in Ontario today and can support a transition to hydrogen as an energy carrier.

THE REAL COST: The three tenets of the Canadian Hydrogen Association are global energy security, a reduction in GHGs and a reduction in urban air pollution. It is evident that a hydrogen transition to a carbon-constrained world has geopolitical, environmental and economic benefits. The real cost of moving to hydrogen is best shown by examining what happens if we don’t. With respect to urban air pollution, a 2007 federal government report indicated that annually 1500 people die in Ottawa, Toronto and Windsor as a result of air pollution at a cost of $2.5MM each. That’s almost $4B dollars of lost potential. And this doesn’t factor in the cost of climate change effects or political destabilization over access to fossil fuels. These are external costs that impact all of us.

When we begin to internalize these costs in a hydrogen scenario they will shift the cost base in favour of hydrogen and we will question why we didn’t move to the hydrogen age much earlier.

Terry Kimmel (kimmel@h2.ca) is president of the Canadian Hydrogen Association.

6-TURBINE WIND FARM OPENS IN FOREST AREA
RAVENSWOOD, ON - A six-turbine wind farm has officially launched in this farming community near Forest. On average, the turbines constructed by Sky Generation Inc., are expected to produce roughly 30 million kilowatt hours of clean, emissions-free power annually — or enough to power 3,000 homes — with a peak production of 10 megawatts. Four of the turbines provide power to the general electricity mix. Electricity generation from the remaining two is being sold to Bullfrog Power, a company that provides green electricity for its residential and business customers.

LANXESS CUTS 250 JOBS, PLANS CHEMICAL PARK
SARNIA, ON - German petrochemical giant Lanxess is cutting 270 of its 750 jobs in Sarnia over two years and closing its Nitrile-Butadiene Rubber (NBR) unit in May. The company cites high energy costs compared to France, where it will move its rubber-producing line. The company does plans redevelopment of the 13-acre rubber unit in Sarnia as part of a 300-acre chemical park. Northern Ethanol has announced its intention to construct a 400 million liter ethanol plant in 2008. Toda Advanced Materials and H.C. Stark are existing chemical park tenants. The entire Lanxess site encompasses about 476 acres.

AUTOMAKERS SUPPORT COMMON FUEL STANDARD
TORONTO, ON - David C. Adams, president of the Association of International Automobile Manufacturers of Canada, says the association supports a North American fuel efficiency standard for cars and light-duty trucks. The association represents the interests of 13 member companies engaged in the manufacture, importation, distribution and servicing of light duty vehicles in Canada. Members include BMW Canada Inc., Honda Canada Inc., Hyundai Auto Canada Corp., Kia Canada Inc., Mazda Canada Inc., Mercedes-Benz Canada Inc., Mitsubishi Motor Sales of Canada, Inc., Nissan Canada Inc., Porsche Cars Canada Ltd., Subaru Canada, Inc., Suzuki Canada Inc., Toyota Canada Inc., and Volkswagen Group Canada Inc.

ROAD TESTING RENEWABLE DIESEL
EDMONTON, AB - The Alberta Renewable Diesel Demonstration, managed by Climate Change Central, has officially launched after months of laboratory testing of various fuel feedstocks and production process. It is Canada's largest cold-weather, on-road demonstration of renewable diesel. Participating trucking companies include: Rosenau Transport Ltd., Hi-Way 9, First Bus Canada and Gibson Energy Ltd. Road testing will continue until October 2008. The federal government has announced plans, dependent on the results of testing under various conditions, to implement a renewable fuels standard requiring 2% renewable content in the Canadian diesel supply by 2012.