Emergency power and sustained occupancy

A Magnolia Generation Combined Heat & emergency Power (CHeP) solution provides residential buildings with emergency power and long-term back-up power to ensure sustained occupancy in prolonged outages.

Our solution uses proven, robust technology. We provide, install and service a reliable, efficient, quiet, natural gas-powered microturbine. We fund and manage the turnkey solution under a 20-year agreement at competitive rates. You rest assured that when the grid fails (and it will) your power won’t.



Microturbine-based CHeP is a proven technology that’s already in extensive use throughout North America. It’s ideally suited to small-scale power generation in multi-level residential buildings.

SMALL FOOTPRINT – fits close to electrical and mechanical systems

FLEXIBLE - microturbine-generated energy can be used for space heating, domestic hot water, thermal storage, de-humidification and cooling

LOW MAINTENANCE – vibration-free, quiet, clean and can run extensively without maintenance


See How It Works




What are CHP and CHeP?
CHP stands for Combined Heat and Power. CHeP stands for Combined Heat and emergency Power. CHP is recognized as a more efficient use of fuel resources as the resulting heat from the combustion process to generate electricity is not wasted to atmosphere, but is recaptured for use. Additionally, central power plants have electrical line losses that are avoided in CHP. Historically, CHP was deployed into large facilities, universities and/or hospitals. With the development of microturbines, high efficient CHP is now possible and feasible for multi-level residential applications.

What is the source of the facility's power?
100% of the facility’s electricity is currently obtained from the local distribution company (LDC), which distributes power throughout the city and to the facility over its electrical grid. Power from the grid to the facility may be interrupted for extended periods due to widespread blackouts, such as those caused by severe weather events like the flooding in the GTA in early summer of 2013 and the ice storm of December 2013. Due to urban growth and increasing population densities, there is increasing stress on the capacity of the grid, which could lead to power failures, rotating blackouts and brownouts. Under these circumstances, natural gas fed CHeP has several significant advantages.

Why is emergency and back-up power important to your facility and its residents?
Fire and safety systems must be available to operate by law. These emergency systems include emergency lighting, elevator and fire safety systems to safely evacuate a building in the event of fire. Additionally, there are “Sustained Occupancy” systems, such as water pumps, to provide running water and space heating to support basic living conditions services in the event that the power grid is down for an extended period.

Where does Magnolia Generation’s CHeP plant obtain power?
The CHeP plant located in the facility generates its power from natural gas to generate power connected to the building’s electrical systems. Since the CHeP plant runs on natural gas, it is independent of the local hydro company and the grid.

Since the CHeP plant operates and supplies power continuously, why is it considered to be a back-up system?
Since the CHeP plant operates independent of the grid, it will continue to generate power without interruption whenever electricity from the grid becomes unavailable, whether due to blackouts, severe weather events or other causes. The CHeP plant is sized and designed to meet the thermal load (domestic hot water and space heating). As such, it provides 30% to 50% of a facility’s total electricity requirements on average. This means that when the grid is down the facility will continue to have available 30% to 50% of its normal power requirement.

What other power back-up systems are available?
A diesel generator is capable of providing back-up power and, until now, has been the only option. Diesel has been shown to have significant drawbacks (see next question).

What are the advantages of Magnolia Generation’s CHeP plant, compared to a diesel generator back-up?

Reliability – the CHeP plant is designed for and capable of continuous operation, so there is less concern it will not start when needed.

Maintenance- even when a diesel generator is not used (because there are no blackouts), it must still be maintained and periodically tested under load to increase the likelihood it will start and not break down, which costs money and power interruptions to the facility. Magnolia’s CHeP plant requires less maintenance due to the use of a different technology.

Environmental – the environmental concerns of storing diesel fuel on premises and keeping the fuel fresh via safe replacement are avoided, as are building upgrades to handle diesel replacement. A Magnolia CHeP plant’s emissions are cleaner than a natural gas fired boiler.

Cost – because Magnolia Generation provides the up-front capital, and the facility pays for power generated by the CHeP plant at prevailing rates, there should be no material difference to what the facility would pay for power if it was 100% percent supplied by the grid. In comparison, the costs of acquiring, maintaining, repairing and re-fuelling a diesel generator are avoided. In most cases, adequate testing and maintenance of diesel generators is not maintained to proper standards to ensure reliability.

How can Magnolia Generation pay all the up-front capital costs and the facility won’t pay more than prevailing rates?
Magnolia will charge the same prevailing rates for electricity that the LDC charges, which will keep the facility’s power costs unchanged from what it would otherwise pay. The price permits Magnolia Generation to cover all the expenses of installing, commissioning, monitoring, and maintaining the CHeP plant and to amortize the up-front capital costs, over a 20-year term.

How much will the CHeP plant and the Energy Supply Agreement cost?
There is no up-front capital cost to acquire and install the CHeP plant. These costs are invested by Magnolia Generation and are recouped over the initial 20-year term. For the facility, the effect on its total utility costs will be neutral – it purchases energy generated by the CHeP Plant from Magnolia Generation at prevailing rates.

How will operation of the CHeP plant affect your facility’s natural gas bill?
The utility costs will not change. The CHeP captures the heat generated by the burning of the natural gas and transfers it to the building’s heating system. As a result, the effect on the consumption of natural gas will be reduced. This reduction in gas costs, however, will be off-set by the thermal costs so the facility will not be materially affected.

What are the applicable safety requirements?
Magnolia’s CHeP plant complies with all applicable fire and building codes including CSA C282 regulations. The CHeP plant cannot be put into operation without inspection and approval by the LDC (for the Connection Impact Assessment), the Municipal Building Department, ESA (Electrical Safety Authority), TSSA (Technical Safety Standards Authority) pursuant to their respective areas of jurisdictions. All compliance is the responsibility of Magnolia Generation at its expense.

Who is Magnolia Generation?
Magnolia Generation is an Ontario limited partnership that funds the installation and commissioning of CHeP plants, and provides management and engineering expertise to maintain operations for a 20-year term.


Magnolia Generation’s team has 15 years of hands-on experience deploying microturbines into Combined Heat and emergency Power applications.

Our Team



James Kennedy brings diverse power reliability expertise to Magnolia Generation, including 15 years of deploying microturbines into Combined Heat & emergency Power applications. In addition, he brings relevant expertise from economic consulting, mechanical contracting, and power quality and reliability roles.

In 1996, James joined On Power Systems, where he was instrumental in ensuring power reliability for medical facilities, utilities, and other mission critical operations. He developed and managed relationships with Philips Medical, Toshiba, Siemens as well as directly with hospitals across the country, including Sunnybrook Health Sciences Centre, St. Michael’s, Trillium Health Centre, Humber River Regional, Ottawa Heart, and more.

During this time, he also played a key role in providing reliability solutions for large data centres for RBC, RIM, Bell, Rogers, Telus and others, managing the deployment of multi-MW rotary UPS Systems as well as power quality monitoring and verification services. These projects ultimately led to the creation of the Smarter Reliability Initiative, which examines mission critical facilities through the lens of power quality monitoring.

In 2000, James launched and managed On Power’s CHP Business by deploying microturbines into targeted applications. Over 20 microturbines were installed across Canada from 2001 to 2013, for customers such as Union Gas, Blue Mountain, Minto Suites, University of Toronto, and the Town of Grimsby, among others. A microturbine project for McMaster University is to be used for industry-leading thermal battery research development.

He holds a Bachelor of Science degree from the University of Guelph.

Stephen Condie, B. ASc. – Principal

Stephen Condie’s career in district energy began in 2006, when he became Project Manager of Engineering and Innovation for Enwave, managing capital projects through all phases, from research and budgeting to construction and commissioning. In 2008, he became acting Manager of Operations, overseeing the operations of three steam plants and one chilled water plant. In addition, he worked with the operations analyst and plant Chief Engineers to identify and justify capital improvement projects. In 2009, he was appointed Manager of Engineering, and played an integral role in the improvements that made Enwave’s Pearl Street Steam Plant the world’s most efficient steam plant with advanced emissions controls.

Stephen’s critical responsibilities included supervising plant and distribution line operations, engineering, construction, external plant management and health and safety. He assumed progressively senior responsibilities, culminating in his direct participation in several large-scale business development initiatives across North America. Prior to leaving Enwave, Stephen was responsible for a large turbine-based 11MW co-generation plant as part of the Enwave District Energy System.

In 2011, Stephen co-founded Magnolia Energy Corporation to focus on developing innovative district energy solutions with integrated electrical systems. By incorporating renewable energy technologies with traditional energy sources, Magnolia continues to lead the way by demonstrating the long-term benefits of innovation, while maintaining the high level of reliability expected of today’s energy infrastructure.

He holds a Bachelor of Applied Science degree in Chemical Engineering from the University of Waterloo.

E.S. Fox Ltd

www.esfox.com established in 1934, is a fully integrated Canadian multi-trade constructor and fabricator providing solutions for the industrial, commercial and institutional markets. With headquarters in Niagara Falls, E.S. Fox maintains full-service offices in Hamilton, Toronto, Kingston, Thunder Bay, Sudbury, Edmonton, and Saint John. ES Fox will install and service Magnolia’s sites with a 1 hour response and 24 hour coverage.

Mulvey & Banani International

www.mbii.com is an electrical engineering firm, established in 1955. With a staff of 85, MBII is focused on electrical engineering for building, campus and regional energy infrastructure, including back-up power systems. Recent projects include Enwave Deep Lake Water Cooling Plant, Enwave Corus District Energy Plant, Telus Data Centre, and Enwave Pearl Steam Plant Upgrade, Toronto.

Doherty Engineering

www.dohertyengineering.ca is a leading engineering company for Cogeneration / CHP. Doherty provide full service engineering consulting services, and acts as an embedded energy manager for industrial, institutional and commercial sectors, large commercial entities, university and college campuses, and district energy corporations.

SBR Mechanical

Mechanical engineer for Engineering Concepts Niagara, and CEM Engineering, specializing in cogeneration/energy and industrial projects, completing several MicroTurbine projects. Trish Knebel is on the board of Directors for Grimsby Power.

Contact Us

Magnolia Generation Inc.
412 Roncesvalles Ave. Suite 204
Toronto Ontario M6R 2N2



James Kennedy, President & CEO



Stephen Condie, VP & COO