The Corporation of Hamilton is evaluating a proposal to build four power plants to reduce the capital's carbon footprint and the cost of energy to building owners in the city.

The combined heat and power (CHP) units would use fossil fuel to generate electricity which would be sold to Belco for the national grid.

Engines enclosed in soundproof chambers filled with seawater would produce three by-products — chilled water, distilled water and biodiesel — which the municipality could use itself and sell to other businesses and organisations.

The cost of building the units could run into tens of millions of dollars but the company behind the proposal, Caliper Engineering Services Ltd., run by Patrick Caton, claims the environmental and economic benefits would be huge.

Corporation members discussed the proposal at a meeting at City Hall yesterday and agreed they were interested in hearing more after watching a presentation by Caliper associate Nalton Brangman last month.

Alderman Pamela Ferreira said: "I was very impressed. What they said was that they would help or find a way to put the chilled water around the city."

Corporation chief operating officer Ed Benevides said afterwards: "The next step is to evaluate whether this is something we could do or should do. It has excited the board enough that they want to look at it at the next stage."

Mr. Brangman told The Royal Gazette last night: "We have asked the Corporation of Hamilton to consider the construction of four CHP plants which they would pay for.

"Those plants would deliver electricity, not to the city, but to Belco. The Corporation would sell the electricity to Belco and supply the chilled water to everybody in the city, as well as selling the drinking water. It could sell the biodiesel or use it for its fleet of trucks."

Mr. Brangman explained that the chilled water produced by the units could be used for air conditioning throughout the city. Mr. Caton added: "This process alone will see huge energy and cost savings, as electricity will not have to be generated to create the same effect."

Belco projected in 2007 that there would be an annual 1.5 percent increase in demand for electricity over the next 20 years and that Bermuda would need to install 40 megawatts of new electricity generating capacity by 2010.

Last year, Government created an Energy Commission to license the sale of electricity to small and large scale independent power suppliers. It has committed to reducing Bermuda's dependency on fossil fuels.

Mr. Brangman said alternative sources of power generation were badly needed on the Island and that CHP, which uses fossil and renewable fuels, was ideal.

"The Island is going to be in a precarious position if we don't have enough power," he said, adding: "What we are not trying to do is recreate the Belco facility.

"The Corporation is not a major user of electricity. It would cost a fortune for everybody to get their supply from the Corporation of Hamilton. The easiest way is to sell that electricity to Belco."

He said the units would go on municipal land near Belco distribution points in the city. "The benefits are significant," said Mr. Brangman.

"The Corporation would be able to provide power at a lower cost to all users in the city because of the chilled water. The by-product of distilled water could be sold directly to the cruise ships, as well as the city buildings."

He said some of the salt water used in the units would have to be discharged back into the ocean and that it could be used for more efficient sewage treatment.

"From an environmental perspective, you are reducing the carbon footprint and the harmful environmental emissions [in the city] by 50 to 70 percent."

Typically, CHP uses an engine to generate heat, which is recovered in a boiler and used to raise steam for various industrial processes.

Minister of Energy Michael Scott declined to comment on the details of the proposal.

He stated: "As Minister with responsibility for Energy, we do not comment on the detailed questions relating to the ideas, business proposals or presentations made to the Minister by any Energy providers prior to the submission of a formal application to the Minister.

"Nor do we think it is appropriate to comment on the Corporation of Hamilton business plans with regard to the Caliper project as we have not had any formal presentation of this product and so again comment is premature."