Clyde Mission: energy masterplan

Appendix C: Feasibility Studies Definition

This appendix presents the proposed spatial and technical feasibility study scope for each of the four proposed projects under consideration to progress from the pre-feasibility to the feasibility study stage.

This section is subject to agreement on scope with Zero Waste Scotland.

For each of the four potential projects under consideration to progress from the pre-feasibility to the detailed feasibility stage, a potential feasibility study scope was prepared. The scope includes a stepwise consideration of technical requirements, economic and commercial requirements, and environmental requirements.

Technical Requirements:

• Step 1. Existing information review
• Step 2. Site surveys
• Step 3. Data Assessment
• Step 4. Energy centre(s) / Plant room
• Step 5. Heat supply technology
• Step 6. Network
• Step 7. Technical modelling
• Step 8: Outline energy centre design

Economic and commercial requirements:

• Step 1: Financial model development
• Step 2: Capital and operational cost assessment
• Step 3: Future price forecasting
• Step 4: Sensitivity testing and risk management
• Step 5: Initial commercial structure

Environmental requirements:

• Step 1: Input data confirmation
• Step 2: Carbon assessment
• Step 3: Additional environmental impacts

Options Appraisal - SEC

For the SEC, it is proposed that there be an initial options appraisal before moving on to the full detailed feasibility study. This would allow the energy opportunities to be more clearly identified, and potentially also some key stakeholder engagement.

Scottish Event Campus (SEC) – Technical Requirements

Step 1: Existing information review

Included in Scope

• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.) associated with the SEC Centre buildings and Clydeside Distillery
• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.) associated with other potential anchor loads within the red-line boundary including Crowne Plaza Hotel, Campanile SECC Hydro Hotel, Radisson Red Glasgow in connecting to the DEN.
• Gap analysis for missing data

Comments

Request for information will be provided to collect information about buildings within the red-line boundary including the SEC conference centre, The SSE Hydro, SEC Armadillo, Clydeside Distillery, Crowne Plaza Glasgow, Hilton Hotel, Radisson Red Glasgow Hotel and the Campanile Glasgow SECC Hydro: Rough floor area for each typology

Step 2: Site Surveys

Potentially in scope (see comments)

• Conduct non-intrusive surveys to main plant rooms (The site visit will comprise contacting the estates management team at the buildings in question).
  The outputs of the site visits will include sketches/schematics of the main heating system and plant rooms, key photographs and brief report of the location, capacity, constraints, and feasibility of a connection to the building.
  A brief assessment of the condition of the existing plant will also be made as boiler replacement can be a key driver for connection to a heat network for existing buildings.
  Identify high level retrofitting required for particular buildings e.g. change to secondary system, insulation.
• If information regarding existing buildings and site are not available, site survey to be carried out. However, its envisaged that this data should be obtainable without a site visit.

Step 3: Data Assessment

Included in scope

• Energy demand data will be compiled for heating, cooling, and electricity. The focus will be on using good quality billing data or other metering source rather than benchmarks.
• Gap analysis for missing data to determine hourly heating demand profiles using BH heat profiling tool and in-house benchmarks by building typology and floor areas.
  

Comments

Preference to use existing billing data if available otherwise online databases, benchmarks, and degree data will be used to calculate demand.

Step 4: Energy centre(s)/ Plant Rooms

Included in scope

• Review any proposals for a new energy centre or plant room based on the outcome of the demand assessment update.
• Discussions with relevant teams to review the energy centre and discuss size, constraints, and opportunities.

Step 5: Heat Supply Technology

Included in scope

High level assessment and recommendation of all feasible heat supply sources and heat storage options relevant to identified energy centre locations.

Step 6: Network

Included in scope

• Assess different routes and perform site walkover to assess preferred network route and identify barriers and constraints including but not limited to road and major utilities infrastructure
• Record asset search for key areas (budget £500 subject to survey company quotation)
• Identify point of connection per building and the feasibility of connection including any retrofitting requirements
• Develop indicative network routing for heating as relevant including any opportunities for soft dig and coordination with highways and urban realm developments
• Network technology selection and outline specification
• Outline network design and sizing – district heating.
• Development of interfaces including simplified schematics and outline plant sizing

Comments

This will be completed using satellite imagery only, e.g. Google Earth. As the network routing will be predominantly on the existing SEC site, it will be predominantly a hard dig, although it is assumed that there will not be any major utilities or underground constraints as SEC is likely to have access to site utility maps which should be used when identifying the preferred DEN route. This will need to be checked at the next stage.

Step 7: Technical Modelling

Included in scope

The energy demand information and connection feasibility will be fed into a detailed hourly energy model to simulate the energy demands. This will be used to test the proposed energy sources against these demands in order to select and optimise the plant type, size, location and use of thermal energy storage.

Step 8: Outline Energy Centre Design

Limited inclusion in scope

The energy centre design will be developed to a sufficient level to assess spatial implication and basic civil works required to be undertaken. We will also consider technology flexibility to allow future transition to alternative technologies if they are not currently deemed practical, mature enough or economic.

Comments

An indication of the spatial implications of the preferred heat-supply technology will be assessed in order to identify potential energy centre location(s).

No layout schematics or civil works assessment will be completed.

Scottish Event Campus – (SEC) Economic and Commercial Requirements

Step 1: Financial Model Development

Included in scope

Develop a financial model (MS Excel) that is sufficiently flexible to enable the viability of a number of options to be assessed. These options will be driven both by the technical analysis – considering physical and operational constraints.

Comments

This will be a simplified model to account for the options detailed in the brief only.

Step 2: Capital and operational cost assessment

Included in scope

Determine costs from manufacturer quotes and previous BH cost models developed for other district heating feasibility studies. To include:

• Capital cost for heating plant, ancillary plant, thermal storage and energy centre
• Capital costs for network and trenching (based on costs per metre based on pipe diameter)
• Capital costs for building connections and substations
• Operation and maintenance costs, staff costs, plant replacement costs

Comments

High-level costing will be completed using currently available data and through engaging with heat pump suppliers along with other relevant technology providers.

Provisional sums will be used for civils works and building connections.

Step 3: Future price forecasting

Included in scope

Assessment of energy price inflation and indexing in line with BEIS projections and current rates for energy purchase and retail values. Projections beyond 2030 to be fixed at 2030 retail values.

Step 4: Sensitivity testing + risk management

Not included in scope

Sensitivity to key inputs will be tested based on appropriate low, baseline and high values for each input. This will support an assessment of key risks to the project and enable an understanding of how to enhance viability e.g. through capital costs, heat pricing, electricity sales contract arrangements, operational tactics (electricity v heat led).

Comments

It is suggested this should be included in future feasibility study and business case modelling.

Step 5: Initial commercial structure

Limited inclusion in scope

Review commercial options with the client, considering stakeholders, potential sources of funds, delivery timeframes etc. Through this exercise, we will confirm scheme boundaries and governance options.
Review of funding options including:

• Assessment of opportunities for offsetting capital through grant funding
• Assessment of financial incentives available for low carbon heat generation
• Assessment of opportunities for private wire heat sales for CHP and retail rates.
• Review of lifetime of financial incentives and risk to project delivery and supply source selection.

Comments

Study will consider:

Capex, OPEX and REPEX funding requirements if necessary

Some general advice will be provided on possible procurement routes and funding opportunities.

Scottish Event Campus (SEC) – Environmental Requirements

Step 1: Input Data Confirmation

Included in scope

All major assumptions will be tested to show their degree of influence on scheme paybacks and CO2 savings.

Step 2: Carbon Assessment

Included in scope

We will provide a detailed assessment of the CO2 emissions for different options. Emission factors based on BEIS/DEFRA projections or selected heat supply source(s) will be used at time steps (e.g. 2025,2030,2040), to test CO2 savings over business as usual scenario.

Step 3: Additional Environmental Impacts

Potentially included in scope

In addition to assessing CO2 emissions we will also review other potential impacts and regulatory consent requirements for the following as a minimum:

• Air quality as a result of different technologies (NOx, PM10 etc.)
• Scottish Environmental Protection Agency regulation and approvals
• Local Authority policy alignment

Fortum EfW Heat Network – Technical Requirements

Step 1: Existing information review

Included in scope

• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.)
• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.) associated with other potential anchor loads within the red-line boundary
• Gap analysis for missing data

Comments

Request for information will be provided to collect information about buildings within the red-line boundary, the main focus will be on the Queen Elizabeth Hospital campus but their interest in connecting to the DEN needs to be established first: Rough floor area for each typology

Step 2: Site Surveys

Potentially included in scope (see comments)

• Conduct non-intrusive surveys to main plant rooms (The site visit will comprise contacting the estates management team at the buildings in question).
• The outputs of the site visits will include sketches/schematics of the main heating system and plant rooms, key photographs and brief report of the location, capacity, constraints, and feasibility of a connection to the building.
• A brief assessment of the condition of the existing plant will also be made as boiler replacement can be a key driver for connection to a heat network for existing buildings.
• Identify high level retrofitting required for particular buildings e.g. change to secondary system, insulation.

Comments

If information regarding existing buildings and site are not available, site survey to be carried out. However, its envisaged that this data should be obtainable without a site visit through engagement with the relevant stakeholders.

Step 3: Data Assessment

Included in scope

• Energy demand data will be compiled for heating, cooling, and electricity. The focus will be on using good quality billing data or other metering source rather than benchmarks.
• Gap analysis for missing data to determine hourly heating demand profiles using BH heat profiling tool and in-house benchmarks by building typology and floor areas.

Comments

Preference to use existing billing data if available otherwise online databases, benchmarks, and degree data will be used to calculate demand.

Step 4: Energy centre(s)/ Plant Rooms

Included in scope

• Review any proposals for a new energy centre or plant room based on the outcome of the demand assessment update.
• Discussions with relevant teams to review the energy centre and discuss size, constraints, and opportunities.

Step 5: Heat Supply Technology

Included in scope

High level assessment and recommendation of all feasible heat supply sources and heat storage options relevant to identified energy centre locations.

Step 6: Network

Included in scope

• Assess different routes and perform site walkover to assess preferred network route and identify barriers and constraints including but not limited to road and major utilities infrastructure
• Record asset search for key areas (budget £500 subject to survey company quotation)
• Identify point of connection per building and the feasibility of connection including any retrofitting requirements
• Develop indicative network routing for heating as relevant including any opportunities for soft dig and coordination with highways and urban realm developments
• Network technology selection and outline specification
• Outline network design and sizing – district heating.
• Development of interfaces including simplified schematics and outline plant sizing

Comments

This will be completed using satellite imagery only, e.g. Google Earth. Its envisaged that it will be predominantly hard dig due to the built-up nature of the site. This will need to be checked at the next stage.

Step 7: Technical Modelling

Included in scope

The energy demand information and connection feasibility will be fed into a detailed hourly energy model to simulate the energy demands.

Comments

This will be used to match the waste heat produced from the EfW appropriately with the local heat demand.

Step 8: Outline Energy Centre Design

The energy centre design will be developed to a sufficient level to assess spatial implication and basic civil works required to be undertaken. We will also consider technology flexibility to allow future transition to alternative technologies if they are not currently deemed practical, mature enough or economic. Limited Discussions with Fortum will take place to establish whether space can be allotted on the Fortum site for district heat network infrastructure such as back-up boilers etc.

No layout schematics or civil works assessment will be completed.

Fortum EfW Heat Network – Economic and Commercial Requirements

Step 1: Financial Model Development

Included in scope

Develop a financial model (MS Excel) that is sufficiently flexible to enable the viability of a number of options to be assessed. These options will be driven both by the technical analysis – considering physical and operational constraints.

Comments

This will be a simplified model to account for the options detailed in the brief only.

Step 2: Capital and operational cost assessment

Included in scope

Determine costs from manufacturer quotes and previous BH cost models developed for other district heating feasibility studies. To include:

• Capital cost for heating plant, ancillary plant, thermal storage and energy centre
• Capital costs for network and trenching (based on costs per metre based on pipe diameter)
• Capital costs for building connections and substations
• Operation and maintenance costs, staff costs, plant replacement costs

Comments

High-level costing will be completed using currently available data and through engaging with relevant technology providers.

Provisional sums will be used for civils works and building connections.

Step 3: Future price forecasting

Included in scope

Assessment of energy price inflation and indexing in line with BEIS projections and current rates for energy purchase and retail values. Projections beyond 2030 to be fixed at 2030 retail values.

Step 4: Sensitivity testing + risk management

Not included in scope

Sensitivity to key inputs will be tested based on appropriate low, baseline and high values for each input. This will support an assessment of key risks to the project and enable an understanding of how to enhance viability e.g. through capital costs, heat pricing, electricity sales contract arrangements, operational tactics (electricity v heat led).

Comments

It is suggested this should be included in future feasibility study and business case modelling.

Step 5: Initial commercial structure

Limited inclusion in scope

Review commercial options with the client, considering stakeholders, potential sources of funds, delivery timeframes etc. Through this exercise, we will confirm scheme boundaries and governance options.
Review of funding options including:

• Assessment of opportunities for offsetting capital through grant funding
• Assessment of financial incentives available for low carbon heat generation
• Assessment of opportunities for private wire heat sales for CHP and retail rates.
• Review of lifetime of financial incentives and risk to project delivery and supply source selection.

Comments

Study will consider:

Capex, OPEX and REPEX funding requirements if necessary

Some general advice will be provided on possible procurement routes and funding opportunities.

Fortum EfW Heat Network – Environmental Requirements

Step 1: Input Data Confirmation

Included in scope

All major assumptions will be tested to show their degree of influence on scheme paybacks and CO2 savings.

Step 2: Carbon Assessment

Included in scope

We will provide a detailed assessment of the CO2 emissions for different options. Emission factors based on BEIS/DEFRA projections or selected heat supply source(s) will be used at time steps (e.g. 2025,2030,2040), to test CO2 savings over business as usual scenario.

Step 3: Additional Environmental Impacts

Potentially included in scope

In addition to assessing CO2 emissions we will also review other potential impacts and regulatory consent requirements for the following as a minimum:

• Air quality as a result of different technologies (NOx, PM10 etc.)
• Scottish Environmental Protection Agency regulation and approvals
• Local Authority policy alignment

Kilcreggan/Rosneath Low Carbon Heating – Community Scale

Kilcreggan/Rosneath Low Carbon Heating – Community Scale – Technical Requirements

Step 1: Existing information review

Included in scope

• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.)
• Gap analysis for missing data

Comments

Request for information will be provided to collect information about the building stock within the red-line boundary. Argyll and Bute Council will be consulted to gain insight into the housing stock under their ownership.

Step 2: Site Surveys

Potentially included in scope (see comments)

• Conduct a review of the make-up of the building stock in both towns (tenure, age, construction type, energy improvements conducted, fuels used etc.)
• Identify high level retrofitting required for particular buildings e.g. change to secondary system, insulation.

Comments

Its envisaged that this data should be obtainable without a site visit through engagement with the relevant stakeholders and using existing public databases.

Step 3: Data Assessment

Included in scope

• Energy demand data will be compiled for heating, cooling, and electricity. The focus will be on using good quality publicly available information.
• Gap analysis for missing data to determine hourly heating, electricity demand profiles using BH profiling tool and in-house benchmarks by building typology and floor areas.
  

Comments

Online databases, benchmarks and degree day data will be used to calculate demand.

Step 4: Heat and Electricity Supply Technology

Included in scope

High level assessment and recommendation of all feasible heat supply sources and heat storage options as well as electricity generation and storage options relevant to the different types of buildings within both towns.

Comments

The study will focus on a wide variety of technologies which are best suited to the type of property, the property location, and other location-specific resources. Properties will be grouped by category in terms of tenure, age, type of property, construction type.

Step 5: Technical Modelling

Included in scope

The energy demand information will be fed into a detailed hourly energy model to simulate the energy demands.

Comments

The feasibility of different heat and electricity technologies will be assessed for different property categories.

Kilcreggan/Rosneath Low Carbon Heating – Community Scale – Economic and Commercial Requirements

Step 1: Financial Model Development

Included in scope

Develop a financial model (MS Excel) that is sufficiently flexible to enable the viability of a number of options to be assessed for different property categories. These options will be driven by the technical analysis – considering physical and operational constraints.

Comments

This will be a simplified model to account for the options detailed in the brief only.

Step 2: Capital and operational cost assessment

Included in scope

Determine costs from manufacturer quotes and previous BH cost models developed. To include:

• Capital cost for heating plant, ancillary plant, thermal storage, electricity generation etc.
• Operation and maintenance costs, plant replacement costs.

Comments

High-level costing will be completed using currently available data and through engaging with relevant technology providers.

Provisional sums will be used for civils works.

Step 3: Future price forecasting

Included in scope

Assessment of energy price inflation and indexing in line with BEIS projections and current rates for energy purchase and retail values. Projections beyond 2030 to be fixed at 2030 retail values.

Step 4: Sensitivity testing + risk management

Not in scope

Sensitivity to key inputs will be tested based on appropriate low, baseline and high values for each input. This will support an assessment of key risks to the project and enable an understanding of how to enhance viability e.g. through capital costs, heat pricing, electricity sales contract arrangements, operational tactics (electricity v heat led).

Comments

It is suggested this should be included in future feasibility study and business case modelling.

Step 5: Initial commercial structure

Limited inclusion in scope

Review commercial options with the client, considering stakeholders, potential sources of funds, delivery timeframes etc. Through this exercise, we will confirm scheme boundaries and governance options.
Review of funding options including:

• Assessment of opportunities for offsetting capital through grant funding
• Assessment of financial incentives available for low carbon heat generation and electricity generation
• Review of lifetime of financial incentives and risk to project delivery and supply source selection.

Comments

Study will consider:

Capex, OPEX and REPEX funding requirements if necessary

Some general advice will be provided on possible procurement routes and funding opportunities.

Kilcreggan/Rosneath Low Carbon Heating – Community Scale – Environmental Requirements

Step 1: Input Data Confirmation

Included in scope

All major assumptions will be tested to show their degree of influence on scheme paybacks and CO2 savings.

Step 2: Carbon Assessment

Included in scope

We will provide a detailed assessment of the CO2 emissions for different options. Emission factors based on BEIS/DEFRA projections or selected heat supply source(s) will be used at time steps (e.g. 2025,2030,2040), to test CO2 savings over business as usual scenario.

Step 3: Additional Environmental Impacts

Potentially included in scope

In addition to assessing CO2 emissions we will also review other potential impacts and regulatory consent requirements for the following as a minimum:

• Air quality as a result of different technologies (NOx, PM10 etc.)
• Scottish Environmental Protection Agency regulation and approvals
• Local Authority policy alignment

Former Exxon Site Redevelopment

Technical Requirements – Former Exxon Site Redevelopment – Technical Requirements

Step 1: Existing Information Review

Included in scope

• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.)
• Review existing systems, energy usage data (half-hourly data preferably) and Buildings Schedule (GFA, typology, occupancy etc.) associated with other potential anchor loads within the red-line boundary
• Gap analysis for missing data

Comments

Request for information will be provided to collect information about proposed buildings: Rough floor area for each typology

Step 2: Data Assessment

Included in scope

• Energy demand data will be compiled for heating, cooling, and electricity. The focus will be on using good quality benchmarks.
• Gap analysis for missing data to determine hourly heating demand profiles using BH heat profiling tool and in-house benchmarks by building typology and floor areas.
  

Comments

Online databases, benchmarks and degree data will be used to calculate demand.

Step 3: Energy centre(s)/ Plant Rooms

Included in scope

• Review any proposals for a new energy centre or plant room based on the outcome of the demand assessment update.
• Discussions with relevant teams to review the energy centre and discuss size, constraints, and opportunities.

Step 4: Heat and Electricity Supply Technologies

Included in scope

High level assessment and recommendation of all feasible heat supply sources and heat storage options relevant to identified energy centre locations.

Comments

The feasibility of a variety of potential heat-supply technologies will be assessed along with the feasibility of a large-scale solar PV installation.

Step 5: Network

Included in scope

• Assess different routes and perform site walkover to assess preferred network route and identify barriers and constraints including but not limited to road and major utilities infrastructure
• Record asset search for key areas (budget £500 subject to survey company quotation)
• Identify point of connection per building and the feasibility of connection including any retrofitting requirements
• Develop indicative network routing for heating as relevant including any opportunities for soft dig and coordination with highways and urban realm developments
• Network technology selection and outline specification
  Outline network design and sizing – district heating.
• Development of interfaces including simplified schematics and outline plant sizing

Comments

This will be completed using satellite imagery only, e.g. Google Earth. Its envisaged that it will be predominantly soft dig as it is a brownfield site. This will need to be checked at the next stage.

Step 6: Technical Modelling

Included in scope

The energy demand information and connection feasibility will be fed into a detailed hourly energy model to simulate the energy demands.

Step 7: Outline Energy Centre Design

Limited inclusion in scope

The energy centre design will be developed to a sufficient level to assess spatial implication and basic civil works required to be undertaken. We will also consider technology flexibility to allow future transition to alternative technologies if they are not currently deemed practical, mature enough or economic.

Comments

Discussions with SW will take place to establish whether space can be allotted on the Dalmuir WWTP site for the energy centre.

No layout schematics or civil works assessment will be completed.

Former Exxon Site Redevelopment – Economic and Commercial Requirements

Step 1: Financial Model Development

Included in scope

Develop a financial model (MS Excel) that is sufficiently flexible to enable the viability of a number of options to be assessed. These options will be driven both by the technical analysis – considering physical and operational constraints.

Comments

This will be a simplified model to account for the options detailed in the brief only.

Step 2: Capital and operational cost assessment

Included in scope

Determine costs from manufacturer quotes and previous BH cost models developed for other district heating feasibility studies. To include:

• Capital cost for heating plant, ancillary plant, thermal storage and energy centre
• Capital costs for network and trenching (based on costs per metre based on pipe diameter)
• Capital costs for building connections and substations
• Operation and maintenance costs, staff costs, plant replacement costs

Comments

High-level costing will be completed using currently available data and through engaging with relevant technology providers.

Provisional sums will be used for civils works and building connections.

Step 3: Future price forecasting

Included in scope

Assessment of energy price inflation and indexing in line with BEIS projections and current rates for energy purchase and retail values. Projections beyond 2030 to be fixed at 2030 retail values.

Step 4: Sensitivity testing + risk management

Not in scope

Sensitivity to key inputs will be tested based on appropriate low, baseline and high values for each input. This will support an assessment of key risks to the project and enable an understanding of how to enhance viability e.g. through capital costs, heat pricing, electricity sales contract arrangements, operational tactics (electricity v heat led).

Comments

It is suggested this should be included in future feasibility study and business case modelling.

Step 5: Initial commercial structure

Limited inclusion in scope

Review commercial options with the client, considering stakeholders, potential sources of funds, delivery timeframes etc. Through this exercise, we will confirm scheme boundaries and governance options.
Review of funding options including:

• Assessment of opportunities for offsetting capital through grant funding
• Assessment of financial incentives available for low carbon heat generation
• Assessment of opportunities for private wire heat sales for CHP and retail rates.
• Review of lifetime of financial incentives and risk to project delivery and supply source selection.

Study will consider:

Capex, OPEX and REPEX funding requirements if necessary

Some general advice will be provided on possible procurement routes and funding opportunities.

Former Exxon Site Redevelopment – Environmental Requirements

Step 1: Input Data Confirmation

Included in scope

All major assumptions will be tested to show their degree of influence on scheme paybacks and CO2 savings.

Step 2: Carbon Assessment

Included in scope

We will provide a detailed assessment of the CO2 emissions for different options. Emission factors based on BEIS/DEFRA projections or selected heat supply source(s) will be used at time steps (e.g. 2025,2030,2040), to test CO2 savings over business as usual scenario.

Step 3: Additional Environmental Impacts

Limited inclusion in scope

In addition to assessing CO2 emissions we will also review other potential impacts and regulatory consent requirements for the following as a minimum:

• Air quality as a result of different technologies (NOx, PM10 etc.)
• Scottish Environmental Protection Agency regulation and approvals
• Local Authority policy alignment