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ENGIE secures£90m long-term carbon and cost savings deal with Edinburgh St James

  • £1
    billion mixed use development

 ENGIE, leading energy
and services specialist, has partnered with Edinburgh St James, the 1.7 million
sq ft development, to develop and operate a new low carbon decentralised energy
scheme, worth £90m.

 The 33 year
partnership will develop and operate a new low carbon energy scheme at Edinburgh
St James, which will:

  • Offer
    substantial savings in terms of capital and operational expenditure;
  • Save
    occupiers the costs of onsite plant provision;
  • Serve
    all homes and businesses at the site with affordable heat and chilled
    water for cooling (where needed)
  • Ensure
    cost-savings and a low carbon footprint
  • Encourage
    sustainability and recycling throughout the site, by using electricity
    generated from the Energy Centre to supply power elsewhere.

 By using a low carbon
and cost-effective energy solution through the onsite Combined Cooling, Heat
and Power (CCHP) energy centre, ENGIE, who is committed to long-term consumer
cost-savings, will meet all residents and occupiers energy needs, right on
their doorstep.

CCHP typically has an
energy efficiency of over 80 per cent compared with 56 per cent for a more
conventional system. In addition, allowance has been made for expansion of the
service into even more sustainable technologies as they are developed.

The new energy centre is a
part of the Growth Accelerator Model (GAM) agreement between Edinburgh St
James, the Scottish Government and the City of Edinburgh Council. The funding
from this innovative partnership is helping to regenerate the capital’s east
end, with ENGIE’s recent deal the latest in a series of projects that have
already benefitted the local community and city as a whole.

ENGIE has been working
closely with Edinburgh St James since 2016 when it was appointed preferred
bidder, to agree future sustainable energy proposals for the site. Under the
terms of the new partnership, ENGIE will design and fit out a basement energy
centre and adopt the district heating and cooling network from Edinburgh St James
and provide ongoing operation and maintenance, including lifecycle
responsibility for the scheme.

Andrew Hart, Managing
Director for ENGIE’s Urban Energy business, said: “This hugely significant
project will be transformational for the city of Edinburgh.  We have been
involved in conversations surrounding the future of the scheme for several
years so it’s fantastic to have agreed our part in bringing it to fruition.

“Too often, energy is an
after-thought when it can bring remarkable benefits to a scheme of this
size.  The fantastic thing about Edinburgh St James is that they saw very
early on, how important a factor this would play in the successful delivery of
the scheme. It will also play a role in supporting City of Edinburgh’s target
of net zero carbon by 2030.

“We have several similar
schemes across the country and our unparalleled expertise in district energy,
coupled with our capabilities in construction and services, means we are
ideally placed to deliver this important project.” 

Martin Perry, Director of
Development at Edinburgh St James, said: “It became clear from the outset that
ENGIE’s commitment to cost-savings in a low carbon environment aligned with
ours, CEC and the Scottish Governments aspirations for our existing and future
partners, residents and occupiers within the development.

“This deal marks another
milestone on the road to completing this transformational project for
Edinburgh. To have been fortunate enough to agree a partner of the quality of
ENGIE takes us another step closer to the project completion and we look
forward to a long and successful relationship with one of the very best energy
centre operators in Europe.”

Cllr Kate Campbell,
Housing, Homelessness and Fair Work Convener, the City of Edinburgh Council,

“We have set an ambitious
target of net zero carbon by 2030, so it’s very welcome that the Edinburgh St
James development has plans for a low carbon, energy efficient scheme. The
energy centre, which will be delivered as part of the infrastructure agreement
with the council, will provide homes and businesses at the site with affordable
heat and encourage sustainability by generating power to be used elsewhere”

ENGIE is anticipated to
complete the centre in late 2019. The retail element of Edinburgh St James is
set to open in October 2020.