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Prototype testing of the Rocks heat exchange system has failed, with the NSW government confirming that re-engineering of the concept design is underway.

The system was first announced by the Sydney Harbour Foreshore Authority (SHFA) in 2010.

At the time, the government said the system will provide water cooling and heating for the air conditioning and refrigeration services of some of the state's most valuable heritage assets in The Rocks.

"The Harbour Heat Exchange project has substantial environmental, social and economic benefits that will significantly reduce a building's energy and resource use and improve its Australian Building Greenhouse Ratings,” the then-government announced.

"The system will allow the water consumption of the buildings and the maintenance costs of the heat rejection equipment to be reduced by 70 to 90 per cent.

"The system's key feature is a battery of submerged heat exchange coils that would be located within the harbour, which would remove the need for cooling towers and boilers on heritage buildings in The Rocks.

"In total, the heat exchange system will deliver savings of at least 23 per cent in energy consumption compared with conventional cooling towers or boilers.”

The SHFA found the most feasible location for the coils was adjacent to the Overseas Passenger Terminal, which is owned and managed by the Sydney Ports Corporation.

Since the project was announced, progress has been slow due to a number of challenges.

An SHFA spokesperson told CCN that once an alternative design and prototype has proven successful, it will be considered by the authority.

If the project still meets the original objectives, the spokesperson said it will proceed to the second stage.

While the spokesperson did not detail the problems that emerged during prototype testing, he said the SHFA remained committed to a heat exchange system.

CCN understands the original design was a closed loop seawater heat exchange system with a capacity of 7MW, making it one of the largest of its type in the world.

The project is part of the NSW government's commitment to reduce carbon emissions in The Rocks by eight per cent by 2020.

The original budget for the project was $6.27 million. Obviously, this has been revised
as a result of design shortfalls and reengineering.

Key benefits of the project range from minimised lifecycle costs to a 56 per cent reduction in energy savings.

The 7 megawatt, closed loop system is expected to reduce maintenance costs to $25,000 annually.

Other benefits include: less rooftop clutter, minimal heritage impact, no separate heating system, no legionella risk, seamless staged refurbishment, less water, power and chemicals, optimised adaptive re-use, the ability to connect and forget.

For all the latest news check out CCN's heat exchanger feature in the July edition of the magazine.