Ottawa, June 23, 2026 – the Government of Canada officially marked the launch of the modernized National Capital Region District Energy System (NCR DES), one of the federal government's most significant projects to reduce greenhouse gas emissions from its own operations. Delivered through the Energy Services Acquisition Program (ESAP) and a 35-year public-private partnership with the Innovate Energy consortium, the $3.4-billion system now provides cleaner, more reliable heating and cooling to federal and non-federal buildings across Ottawa and Gatineau. As the consortium's operations and maintenance (O&M) partner, Equans Services will operate and maintain the network for decades to come.
The announcement was made by the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, and coincided with the International District Energy Association's 2026 conference in Ottawa, where global industry leaders gathered to advance low-carbon district energy systems.
A Major Milestone for Canada's Energy Transition
For decades, the NCR DES relied on aging, high-temperature steam infrastructure built between 50 and 100 years ago. Through ESAP, Public Services and Procurement Canada (PSPC) has transformed this legacy network into a modern, efficient, and flexible system powered primarily by low-carbon electricity, with high-temperature steam replaced by a low-temperature hot water system and electric chillers, improving energy efficiency, reliability, and safety across the board.
The result is a system designed to deliver reliable, cost-effective heating and cooling while significantly cutting emissions, now and as it expands in the years ahead.
What Is the NCR District Energy System?
A district energy system connects multiple buildings to a centralized, shared source of heating and cooling, rather than relying on individual on-site boilers and chillers. The modernized NCR DES now includes:
- Four energy centres: Tunney's Pasture, Cliff, and Gatineau, plus the modernized Confederation Heights facility, supported by two pump houses
- More than 14 kilometres of distribution piping connecting key components across the region
- Approximately 200 megawatts of heating capacity and 150 megawatts of cooling capacity
- A direct connection to Hydro-Québec's electricity grid, enabling greater use of low-carbon electricity and a gradual reduction in reliance on natural gas
- Built-in capacity for future expansion, allowing additional federal, provincial, and private-sector buildings to connect to clean, reliable energy over time
Equans Services' Role in the Innovate Energy Consortium
Equans Services is a member of Innovate Energy, the consortium delivering ESAP through a 35-year public-private partnership (P3) alongside PCL Constructors Canada Inc., PCL Investments Canada Inc., and Black & McDonald. Of the project's $3.4 billion in total value, $1.3 billion was dedicated to design and construction, and $2.1 billion to long-term operations and maintenance, the portion of the project where Equans Services' multi-technical expertise plays a central role, providing 24/7/365 supervision and continuous response across the network for the decades ahead.
" ESAP is an extremely important project in the National Capital Region, and working with the Government of Canada to help them achieve their sustainability goals was a perfect fit for EQUANS. In the case of ESAP, the public-private partnership worked as we all have the same goal in mind: to decarbonize and green the Government of Canada's heating and cooling operations in the National Capital Region. "
— Tom Burton, General Manager for ESAP at Equans Services
Why District Energy Matters for Urban Decarbonization
District energy systems are widely recognized as one of the most effective ways to cut emissions in dense urban environments, where buildings, vehicles, and infrastructure are concentrated. By centralizing thermal energy production, integrating renewable and local energy sources, and capturing waste heat, networks like the NCR DES reduce the need for individual, less efficient on-site equipment, while improving reliability through redundancy and professional, centralized operations.
The project also reflects the Government of Canada's commitment to reconciliation, with PSPC engaging Indigenous communities on commemorative installations and environmental monitoring initiatives, and integrating Indigenous knowledge and perspectives throughout.
" Canadians understand the need to protect the air we breathe, particularly in cities, where people, cars and infrastructure are more concentrated. District energy systems are among the most efficient ways to reduce emissions in urban environments, and the Energy Services Acquisition Program reflects our government's commitment to build a more sustainable future in the National Capital Region. "
— The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant
"The Energy Services Acquisition Program is the proof point the world needs to see, and Ottawa is a working model for what federal ambition and district energy expertise can achieve together."
— Rob Thornton, President and Chief Executive Officer, International District Energy Association
Looking Ahead
Designed for future growth, the modernized NCR DES will continue to welcome new federal, provincial, and private-sector buildings onto a clean, reliable network, reinforcing Ottawa and Gatineau's position as a model for large-scale, decarbonized district energy in North America.
As O&M partner, Equans Services will continue to ensure the long-term performance, safety, and reliability of this critical infrastructure for the National Capital Region.
Frequently Asked Questions
The NCR DES is a centralized network that provides heating and cooling to federal and non-federal buildings across Ottawa and Gatineau. Recently modernized through ESAP, it now runs primarily on low-carbon electricity, replacing an aging, high-temperature steam system built 50 to 100 years ago.
ESAP is one of the Government of Canada's most significant initiatives to reduce greenhouse gas emissions from its own operations. It financed and delivered the modernization of the NCR DES through a 35-year public-private partnership with the Innovate Energy consortium.
Equans Services is part of the Innovate Energy consortium, alongside PCL Constructors Canada Inc., PCL Investments Canada Inc., and Black & McDonald. Equans Services contributes to the long-term operations and maintenance of the modernized system across the National Capital Region.
The project is valued at $3.4 billion in total: $1.3 billion for design and construction, and $2.1 billion for long-term operations and maintenance over the life of the 35-year contract.
The system now runs primarily on low-carbon electricity sourced from Hydro-Québec's grid, with natural gas used only to meet peak seasonal demand. This significantly reduces emissions compared to the previous high-temperature steam system.
The network serves federal and non-federal buildings across Ottawa and Gatineau, with built-in capacity for future expansion to additional buildings from other levels of government and the private sector.
District energy connects multiple buildings to a shared, centralized heating and cooling system instead of individual on-site equipment. It is widely recognized as one of the most efficient ways to reduce emissions in dense urban environments while improving reliability.
Innovate Energy is the consortium responsible for delivering ESAP through a 35-year public-private partnership. Its partners are PCL Constructors Canada Inc., PCL Investments Canada Inc., Equans Services, and Black & McDonald.
