Developing Regional Energy Ecosystems (REEs) by Capitalizing on the Implementation of Thermal Networks

Thermal energy networks (TENs) are a promising part of our decarbonization toolkit. Flexible and efficient, modern fourth- and fifth-generation TENs can help cut emissions, strengthen energy resilience, and create local economic benefits when deployed strategically.

For all their flexibility, TENs face major hurdles: regulatory uncertainty, the lack of standardized planning tools, and the complexity of coordinating multiple stakeholders are slowing deployment in Canada.

The TENs White Paper, published in September 2025 by the Building Decarbonization Alliance, draws on dozens of interviews with stakeholders across Canada and input from our expert advisory group. It provides a pan-Canadian State of Play, examines the range of benefits TENs can deliver and the key barriers to adoption, and proposes a framework with three key strategies to help scale strategic TENs.

This presentation will summarize what we learned in developing the White Paper, and will preview the tools, research, modelling, and collaborations we’ll be rolling out to inform growth of the sector.

District heating and cooling networks facilitate the integration of renewable energy resources and storage, thus shaving peak loads and valorizing heat rejection or low temperature heat sources when available. To derisk the investment, we develop digital twins of existing or new built urban areas to model the heating and cooling demand and automatically size district energy solutions. We show how different demand scenarios impact the network dimensioning and costing and how networks can be designed in different temporal phases of urban development.

A Regional Energy Ecosystem (REE) refers to an interconnected network of energy-related resources, entities, and infrastructures—including industrial sites and emerging technologies—within a defined geographic area. These interconnections are shaped by economic factors, policies, regulatory frameworks, and social dynamics.

A well-functioning REE can enhance energy security and resilience, support climate and decarbonization goals, stimulate innovation and economic development, and empower communities through local initiatives.

In Québec, several REEs are already in place. Most of them focus on valorizing local waste—especially biodegradable materials—to produce energy (e.g., renewable natural gas, RNG) that is consumed within the same region.

Although many studies have identified industrial synergies, energy symbiosis remains underexplored. This project aims to assess the potential for developing an REE in the Saguenay-Lac-Saint-Jean region, known for its aluminum production.

A detailed mapping of energy resources (electricity, natural gas, hydrogen, biomass, etc.), greenhouse gas emissions, and residual heat will be developed for this region. Potential energy synergies between the industrial, residential, and commercial sectors will be explored and analyzed, with a focus on decarbonization and resource optimization.

For several years, Enbridge Gaz Québec has been planning a regional energy ecosystem that utilizes local waste to reduce energy consumption, greenhouse gases, and grid overload. Part of the ecosystem specifically targets the recovery and distribution of industrial thermal waste. This conference will provide an opportunity to explore the potential, and the challenges associated with the deployment of such an initiative.

Waste heat recovery (WHR) is a solution that directly contributes to energy efficiency and sobriety by reducing peak winter electricity demand while simultaneously reducing greenhouse gas (GHG) emissions and energy consumption. Using waste heat from one source to meet the heating needs of others is central to the circular economy, as it involves recovering a waste product (heat) to reduce resource requirements (fuel or electricity).

According to the study of the technical and economic potential of WHR conducted by Polytechnique Montréal for the MELCCFP in 2024, WHR heating mixed-use neighborhoods near population centers could meet the needs of more than one million homes. The estimated potential for greenhouse heating would allow heating an area significantly larger than the current greenhouse area in Ontario, which represents almost 10 times the current greenhouse area in Quebec.

In March 2023, the MELCCFP launched the Valorisation des rejets thermiques Program, which offers up to $150,000 in financial assistance for a feasibility study and up to $40,000,000 for project implementation.

The conference will present what WHR is, current WHR projects in Quebec, as well as the financial assistance and support offered by the MELCCFP.