CAfE announces start of district energy scheme feasibility work

The Christchurch Agency for Energy (CAfE) has announced the letting of
contracts for feasibility studies for New Zealand's first city heating and
cooling District Energy Scheme (DES). A DES distributes heating and cooling
energy to city buildings using an underground network of pipes.

The Christchurch proposals call for the use of renewables as the primary fuel
source. Being a "smart grid" it will be possible to capture energy from
other sources, including waste heat, as well. Such schemes are common in
Europe and North America and can result in significant savings for building
owners and their tenants.

CAfE along with the Energy Efficiency and Conservation Authority (EECA) has
confirmed selection of the agencies to undertake three feasibility studies.

The studies commissioned from the RFP process are:
1. Technical study which will determine technical aspects and commercial
viability has been awarded to a consortium consisting of Bizcat, Aurecon and
FVB.
2. Social, Environmental and Economic study - awarded to a consortium led by
MWH Global, Taylor Baines and Associates, and PricewaterhouseCoopers.
3. A study considering possible ownership and investment options has been
awarded to KPMG.

Octa Associates will project manage the three feasibility studies on behalf
of CAfE.

CAfE CEO Merv Altments has welcomed the appointments, "These studies will
tell us if Christchurch can realistically take a major step-change towards a
more renewable and sustainable energy future. We will be keen to share with
Christchurch the outcomes of the studies in early 2012, at which stage we
will be better placed to consider the next steps.

"The rebuilding of Christchurch has created a one-off opportunity to move
forward with 21st century solutions to our energy requirements without the
burden of legacy costs associated with existing building systems," said Mr
Altments.

About Christchurch Agency for Energy

The Christchurch Agency for Energy (CAfE) Trust is a charitable organisation (Reg # 44869), established by the Christchurch City Council in partnership with a number of other organisations to:
* raise awareness and promote energy efficiency initiatives and the
use of renewable energy in Christchurch;
* reduce environmental problems caused by the use of fossil fuels in
Christchurch; and
* introduce initiatives to address the negative health and social
impacts caused by fuel poverty and energy affordability issues in
Christchurch.

CAfE is tasked with investigating options for enhancing Christchurch's
energy mix, such as the district heating project proposed in the recently
released draft Central City Plan.

CAfE works with Government, Councils, local businesses and building and
property owners.

ENDS

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