Hefty retrofit bill likely as Enwave plans shut down of more London steam lines

The City of London will likely face millions in retrofitting costs as Enwave looks to decommission more of its downtown steam infrastructure, including a line which heats city hall.

Enwave, which owns London District Energy (LDE), told the municipality at the end of April that it would shut down most of its medium-pressure steam lines downtown by Oct. 31, 2026.

In a report to next week's infrastructure and corporate services committee meeting, city staff said the reason was that sections of the line were becoming increasingly unreliable despite regular maintenance and "could present safety concerns in the future."

City councillors will vote to receive the report for information.

The move will impact four city properties, including City Hall, Centennial Hall, the Central Library, and Museum London, the report said. Twelve customers overall will be affected, Enwave said on its website. The Centennial House apartment building will also be impacted.

This follows the company's announcement last year that it will decommission a separate low-pressure steam line in the core. It's set to shut down by the end of this month, impacting 17 customers, including the Grand Theatre and the city-owned J. Allyn Taylor building at 267 Dundas St.

Converting just the J. Allyn Taylor building from steam to in-building boilers cost at least $810,000, the city said. The Grand Theatre faced a similar estimate, and council voted in August to give the venue $400,000 from the Municipal Accommodation Tax fund to help offset the cost.

"Based on our experience, it is likely the total cost to address this issue will exceed $5 million for all affected buildings," city staff write in the report.

"As the work to provide an alternative to steam heating is unplanned and not included as part of the adopted 2024-2027 multi-year budget, a source of financing will need to be identified for council approval to support the cost of this work."

Converting city hall from steam to hot water heating, or hydronic heating, would be difficult, the report says. Doing the same to Centennial Hall would be very difficult, as steam is used directly in the building's heating coils.

City staff say Enwave is assessing the installation of temporary boilers during the notice period until October 2026. One could be located on the west side of city hall, which sits near the end of a steam line branch.

Feasible options, timelines, and cost estimates will come after a detailed impact assessment.

CBC News reached out to Enwave for comment but did not receive a response before publishing. Jones Entertainment Group, which manages Centennial Hall, referred questions to the city.

In a statement on the LDE website, the company says it will work with impacted customers to assist in switching to alternative heating sources. The decommissioning process, it adds, will be structured to minimize customer inconvenience and maintain continuity of service.

"We have made sure to provide impacted customers within each respective zone with ample notice to switch to alternative heating systems before the onset of the upcoming winter seasons," the statement says.

The company says it's completing an analysis of the remainder of the network.

"If our assessments highlight areas that pose safety and/or reliability risks, we will take the necessary actions to either upgrade or decommission those sections to uphold the safety, integrity and efficiency of our service delivery to customers," the LDE website reads.

No members of city administration were available to comment Wednesday.

"There's a high-pressure line. I do not necessarily foresee anything coming up in the future from that, from what Enwave has informed us," Ward 13 Coun. David Ferreira said Wednesday.

He hesitated to comment further, as the city is still assessing impacts.

Enwave and LDE provides chilled water for cooling and steam for heating to city hall, Centennial Hall, the Central Library, Museum London, RBC Place and the J. Allyn Taylor Building. The current service contract between the city and company dates to 1992.

Previous figures on Enwave's website say it serves at least 60 customers, including St. Joseph's Hospital and University Hospital, and operates 10 kilometres of steam pipes.

It also operates three kilometres of chilled water pipes, which will not be impacted.