Item - 2017.EX29.7

The Executive Committee recommends that:

1.  City Council direct the Deputy City Manager, Internal Corporate Services to negotiate with Enwave Energy Corporation, based on the principles in Attachment 1 to the report (November 15, 2017) from the Deputy City Manager, Internal Corporate Services, the terms for a Joint-Development Agreement for the purpose of developing Low-Carbon Thermal Energy Networks, and report back to Council in the first quarter of 2018.

2.  City Council direct the Deputy City Manager, Internal Corporate Services to undertake a business case study in consultation with the City Manager, to determine an appropriate governance and operational framework for a partnership with Enwave and to report back to Council in the first quarter of 2018.

3.  City Council direct the Deputy City Manager, Internal Corporate Services to work with Enwave and key City divisions, agencies and corporations on the development of a portfolio of near-term opportunities, including applying for grants, entering into contribution agreements for grants if successful, and other due-diligence related activities.

In June 2017, the Executive Committee directed the Deputy City Manager, Internal Corporate Services (then Chief Corporate Officer) to lead the negotiation of the necessary agreements for a business arrangement with Enwave Energy Corporation ("Enwave") for the development of Low-Carbon Thermal Energy Networks ("LCTEN").

The key objectives that have been identified include:

- Reduce greenhouse gas emissions, and improve energy resilience;
- Achieve speed to market, scalability, and ability to fund projects identified for development; - including attracting grants from external parties;
- Foster economic development, City building, and new revenue opportunities;
- Mitigate risks associated with project development and operation; and
- Create balance between long term project development and the capability to initiate projects that are ready for development now.
 

The City is considering several potential organizational and governance models. The initial step is to enter into a Joint Develop Agreement with Enwave that will lead to the definition of the preferred governance and operational framework to be implemented. Negotiations with Enwave are ongoing and we will report back to Council in the first quarter of 2018.

The next steps are:

- The City and Enwave negotiate the terms a joint-development agreement (non-binding until approved by Council), consistent with the principles outlined in Attachment 1 for consideration and approval by Council in the first quarter of 2018.
- The City prepare a business case study to determine an appropriate governance and operational framework for a partnership with Enwave and to report back to Council in the first quarter of 2018.
- The City and Enwave continue due-diligence on near-term Low-Carbon Thermal Energy Networks development opportunities in specific geographic nodes.