Queens Quay CLYDEBANK District Heating Network Queens Quay

Queens Quay CLYDEBANK District Heating Network

Queens Quay Regeneration ● Civic Project ● True Public / Private Collaboration ● A Site of Historical Significance The Aspiration / Ambition ● 160 Acres ● A Future that Inspires / Drives Regeneration ● Sustainable Development Using Best Practice

LCITP Application Additions • • • 4. 1 Refreshed Capex 4. 2 Refreshed Financials 4. 3 Refreshed Financials 5. 1 Business Case included as appendix 5. 2 Project Programme included as appendix 5. 5 Risk Register included as appendix

LCITP Application Additions cont. • 6. 1 Low Carbon information included • 7. 1 Economic Impact narrative included • 7. 3 Community Engagement narrative included • 7. 4 Community Ownership narrative included

Current Status • • • Initial Feasibility Commenced 2015 (CRL) Technical Feasibility 2016 (CRL) EOI for LCITP funding – Sept. 16 (34 bids) Invited to develop Business Case Oct 16 17 Projects shortlisted Determined by Jan 2017

Low Carbon Infrastructure Transition Programme- Aims • Low Carbon Heat • Scotland will meet 11% of its non-electrical heat demand by 2020 • Significant Carbon emission reductions 42% reduction cut by 2020 (SG) – 15% WDC Target • Large scale demonstrator projects - Replicable • Funding Availability • 50% of Capex (£ 5 M - £ 20 M)

Business Case Financial • Capital requirement overall - £ 12 M • 50% from LCITP - 50% of Loan Funding • Discussion with SG backed SPRUCE fund • Loan will be repaid by year 2038 • Expected Surplus in Year 25 (2043) is £ 3. 1 m in nominal terms • And in Year 40 (2058) £ 4. 5 m in nominal terms

Business Case Current User Demand • WDC – Aurora House , Titan Enterprise , Town Hall , Library , Leisure Centre (2017) and Care Home (2018) and • West College Scotland • NHS Medical Centre (2019) • 200 Homes for Social Housing

Business Case Current User Demand (cont. ) • • 1, 000 Private homes Golden Jubilee Hospital Clydebank area Clyde Regional Shopping Centre

Business Case Heat Usage Requirements • All users in Queen Quay – 10, 190 MW Hrs yearly • Golden Jubilee Hospital - 12, 000 MW Hrs yearly

Business Case 3 Stage approach for LCITP Programme Stage 1 Stage 2 Stage 3 Energy Centre Build and Pipework to serve existing users. Main spine distribution pipework and connection to new build developments Connection in phases to private housing

Business Case Funding Breakdown: 3 Stage approach for LCITP Stage 1 Energy Centre Build Stage 1 Plant Stage 2 Network connection Stage 3 Network for QQ plots Main contactor prelims Allowance for Risk Total Capex £ 2, 549, 182 £ 4, 635, 107 £ 2, 385, 425 £ 793, 922 £ 1, 036, 364 £ 600, 000 £ 12, 000

Business Case Transformational Potential: • Stage 4 Golden Jubilee Hospital • More than double the scale of proposed Network • 800 metres to connect – Cost £ 1. 9 m • Consideration of expansion to Dalmuir Area/ Clyde Regional Shopping Centre

Business Case Proposed Structure • Creation of a Municipal Energy Supply Company (ESCo) • Wholly owned by WDC • Board Membership – Councillor Led

Business Case Procurement ESCo will select a Design, Build, Operate and Manage Contractor to; • Generate Heat • Distribute Heat to customers • Achieve and maintain performance requirements • Collect revenue from Customer • Operate, Maintain and expand the network

Business Case Delivery Programme • Energy Centre Design and Build 02/17 – 02/18 • Pipework Distribution 2017 • Plant Installation by Summer 2018 • Fully commissioned August 2018(LCITP O 9/18) • First connections operational Autumn 2018

Business Case LCITP Timetable • Bid deadline for submission 24/11/16 • Bid Selection process December- January 17 • Bid Awards Jan/ Feb 2017 • Scheme Design Jan – March 2017 • ESCo Formed Jan / Feb 2017

QUESTIONS