PROJECT LEAP - A big step towards becoming Climate Positive - Ontario Geothermal Association: Growing The Heating & Cooling Industry.

The following is a brief case study on a significant infrastructure project that will reduce the University of Toronto’s St. George campus greenhouse gas emissions by over 50% by the end of 2027.

The University of Toronto’s (U of T) downtown St. George campus, founded in 1827, is one of Canada’s largest and most complex urban energy networks serving over 100,000 campus users each day. Its century‑old district‑energy system has quietly powered research labs, libraries and classrooms for generations and continues to do so today.

Launched in 2021, the university’s Climate Positive Plan committed U of T to eliminate more greenhouse gases than it emits by 2050. This dual challenge — aging infrastructure and ambitious climate goals — set the stage for Project Leap, a $138 million transformation that reimagines how an academic institution can electrify, decarbonize and modernize the backbone of how it manages energy.

Driving the change

Originally commissioned in 1912 with coal as its energy source, the St. George campus district energy system transitioned to natural gas in 1952 and adopted cogeneration in 1994. Over time, it has faced increasing pressure to modernize. Deferred maintenance costs were increasing, while high‑intensity research facilities require uninterrupted increased capacity and clean power. Simply replacing aging boilers would not align with U of T’s long‑term emissions targets and sustainability vision, so a system‑level redesign became the most viable path.

Key drivers for this transformation include:

Legacy steam infrastructure reaching end‑of‑life and limited efficiency potential.
Electricity supply stability in Ontario, making large‑scale electrification feasible.
Escalating operational and carbon costs associated with natural gas combustion.
Desire to demonstrate leadership and influence others on the world stage.
Integration opportunity with deferred maintenance renewal projects.

Engineering the LEAP

Project Leap is a multi‑phase, campus‑wide initiative designed to reduce campus emissions (scope 1 and 2) by more than 50 % by the end of 2027. It combines electrification, efficiency and thermal‑energy storage technologies into a cohesive, resilient system. Each component contributes to decarbonization while maintaining operational continuity on a live campus.

Major system components are:

Central Plant electrification. Replacement of one of four natural gas boilers with two 15 MW electric boilers for steam production. Six new industrial heat pumps feeding the low‑temperature hot‑water (LTHW) network. Repurposing of the existing 6 MW Cogeneration plant.
Geoexchange – Utilizing the full capacity of a 368-borehole field beneath front campus providing significant thermal capacity, capturing summer heat and storing it underground for reuse in the winter.
Deep Energy Retrofits – Ventilation optimization, heat‑recovery units and advanced humidity control in energy intensive buildings to reduce campus demand intensity.
Network Integration – Conversion from high‑pressure steam to low‑temperature hot‑water distribution improves efficiency by 20–30 % and enables heat‑pump compatibility.
Lighting Retrofits – Reducing energy use and emissions by upgrading to energy-efficient LED lighting in 37 buildings.

The project is structured as an interconnected nodal network — an approach common in advanced European district‑energy systems — allowing phased integration and redundancy without interrupting academic operations.

Technical highlights:

Peak heating capacity: 64 MW (mix of electric and recovered heat).
Expected GHG reduction: 46,000 t CO₂e  (> 50 % reduction).
Service reliability: > 99.99 % uptime maintained through redundant loop configuration.

Financing and partnerships

Project Leap’s scale and complexity required innovative financing and governance. U of T adopted an outcome‑based procurement and blended‑finance model that attracted both public and private capital while sharing risk across partners.

Funding structure:

Total project value: ~$138 million.
$56 million low‑interest loan from the Canada Infrastructure Bank (CIB). o Federal decarbonization incentive funding and provincial Save on Energy program contributions.
University capital reinvestment from avoided‑cost savings.

Procurement emphasized performance, not lowest cost. Proposals were scored on technical merit (50 %), delivery capacity (17 %), and financial impact (33 %). This outcomes‑based model encouraged innovation and accountability among bidders. The selected consortium developed a solution that advanced the university’s climate‑positive timeline by a decade while reducing projected capital cost relative to the feasibility baseline.

Collaborative framework features:

Multi‑party contracts linking university, contractors, private lender, CIB.
Guaranteed energy and carbon‑performance metrics with shared incentives.
Agile governance structure allowing iterative design and schedule adjustments on a living campus.
Transparent data‑sharing and coordinated commissioning to minimize operational risk.

Results and impact

By the end of 2027, Project Leap will deliver measurable performance gains across environmental, financial, operational, and educational dimensions.

Sustainability:

46,000 t CO₂e annual reduction (> 50 % of scope 1 and 2 emissions).
Cut campus fossil fuel use by 75%
Elimination of a natural gas boiler and transition to electric, low‑temperature hot‑water distribution.
Significant drop in campus combustion emissions and local air pollution.

Financial and operational:

Positive net present value
Deferred maintenance addressed through equipment replacement and system standardization
Improved infrastructure and energy supply resilience to climate extremes.
High‑efficiency equipment lifespan extended by 20 – 25 years.

Educational/Communications:

Real‑time monitoring and public display systems to showcase energy flows.
Integration with academic curriculum and research in sustainability and thermal systems.
Visible evidence of U of T’s leadership in urban decarbonization to influence others.
Communicating “it can be done” to inspire the U of T community and beyond.

Lessons and takeaways

Project Leap demonstrates that campus decarbonization is as much about culture and governance as it is about technology. The initiative reframed energy transition as an institutional collaboration rather than a facilities project.

Key lessons:

Set a clear north star. A bold target like ‘Climate Positive by 2050’ aligns technical and financial decisions.
Link carbon goals with asset renewal. Tackle deferred maintenance while advancing emissions reduction.
Design for flexibility. Iterative planning allows adaptation to new technologies and funding windows.
Procure for outcomes vs. inputs. Reward verified performance rather than upfront cost. o Build cross‑sector partnerships. Collaboration with lenders, utilities and engineers reduces institutional risk.
Keep sustainability visible. Making infrastructure part of the educational experience sustains engagement and accountability.

Ultimately, Project Leap shows that deep decarbonization can accelerate — not delay — operational renewal. By fusing electrification, innovation, collaboration and leadership, U of T is demonstrating how complex institutions can enable a climate‑positive future.