Polycon Industries in Guelph, a division of automotive parts giant Magna International, received an $8 million energy efficiency incentive this week.
The money is part of the Ontario Independent Electricity System Operator’s Save on Energy program, which is administered in Guelph by Guelph Hydro Electric Systems for its industrial and commercial customers.
The funding — coming from a process and systems upgrade purse — will go into an 8-megawatt, natural-gas fired heating and power-generating plant.
The announcement was made Monday by Guelph MPP and Ontario Treasury Board president Liz Sandals.
The new heat and power plant will be one of the largest co-generation facilities of its kind in southwestern Ontario, according to a Guelph Hydro press release.
It is expected to reduce Polycon Industries’ peak energy demand by nearly 50 per cent. The plant's annual electricity consumption from the provincial grid will be reduced by nearly 51,000 megawatt hours each year.
The new system uses waste heat to generate steam and hot water that is used in the company’s plastic forming process.
The incentive will help Polycon offset the up front costs of the major capital investment.
“Energy conservation is our cleanest and most cost-effective energy resource,” Sandals said in the release. “I am pleased to see businesses in Guelph take advantage of the energy conservation incentives offered by our government agency through the Save on Energy suite of programs.”
In the release, David Gray, Polycon's general manager, said the new energy system will reduce energy costs in a substantial way, “helping ensure that Magna maintains its competitive position and makes a positive impact on the communities where we live and work.”
Pankaj Sardana, Guelph Hydro CEO, said his agency’s conservation professionals worked hand-in-hand with Polycon to implement a new system that will enhance the plant’s operational efficiency.
