City on the hook for millions as steam heating pipe to be decommissioned

Centennial Hall in London, Ont. (Daryl Newcombe/CTV News London)

London taxpayers will likely feel steamed after learning the hefty price tag for installing new heating systems in four municipal buildings slated to lose access to their current source of heat.

On April 30, Enwave Energy announced it will be shutting down most of its medium-pressure steam line that feeds a district heating system beneath part of downtown London, including City Hall, Centennial Hall, Museum London, and the Central Library.

A report going to the Infrastructure and Corporate Services Committee estimates the cost to install new in-building systems for heating, humidity control, and water heating, will total $8.35 million.

• City Hall $2 million
• Centennial Hall $1.7 million
• Central Library $2.25 million
• Museum London $2.4 million

If the solutions for City Hall and Centennial Hall can be combined, there is potential cost avoidance of approximately $800,000, lowering the total to $7.55 million.

“Most manufacturing of these steel intensive products occurs in the United States, making pricing sensitive to tariff conditions,” the report warns. “This introduces both a schedule and cost risk to this project.”

These unplanned projects were not included in the 2024-2027 Multi-Year Budget, so city staff recommend funding the project from the corporate contingency budget.

Enwave has indicated that some sections of its steam system are becoming increasingly unreliable and could present safety concerns in the future.

The city’s been left with little time to complete the design and installation of alternative systems based on Enwave’s intention to cease operating most of the medium-pressure steam line by October 31, 2026.

“This will be a complex and challenging undertaking that will require external resources for engineering design and project implementation support and the procurement of appropriate systems,” reads the report.

Challenges identified by city staff

• October 2026 deadline creates additional time urgency for Enwave customers.
• All the affected facilities are large, specialized facilities with limited or no opportunities for planned service interruptions.
• Humidity and temperature control is especially sensitive for Museum London, City Hall and the Central Library for artifact and archival management, and important for occupant comfort at Centennial Hall.
• Potential complexity of required electrical or natural gas upgrades for the new systems could threaten timeline
• Availability of mechanical and electrical skilled trades may be limited due to competing demands from other Enwave customers with similar projects.
• Given the schedule risks it may be necessary to install temporary boilers until an alternative solution can be installed.
• Greenhouse gas reductions are an evaluation criterion for building upgrades but the most efficient and expeditious solution will be the primary driver