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WIND POWER CUTS ENERGY COSTS FOR SIX CANADIAN MALLS

By Debra Hazel

Soaring energy prices are a problem for industries the world over. But for six malls in Alberta, Canada, the answer is blowing in the wind.

Seeking to save money — not to mention the environment — Ivanhoe Cambridge has joined up with Calgary-based energy supplier Enmax to obtain one-quarter of the power for its six malls and two office towers from wind. The malls are Mill Woods Town Centre, St. Albert Centre and Southgate Centre, all in Edmonton; and Deerfoot Outlet Mall, Southcentre and Sunridge Mall, all in Calgary.

This, the largest wind power purchase in the North American shopping center industry, saved C$1.6 million ($1.3 million) in energy costs last year, its first in operation, according to Ivanhoe.

“We’re very community focused,” said Belinda D. Sadlowski, SCMD, director of regional marketing Montréal-based Ivanhoe Cambridge. “What better way of committing to the community than by helping it environmentally?”

Not only did the deal reduce the landlord’s rate per kilowatt hour by 10 percent, a savings the landlord says it passed on directly to the retailers, but it reduces carbon dioxide emissions by 23,700 tons annually. That is the equivalent of adding 2.5 million mature trees to the environment, Sadlowski says. “That’s huge,” she said.

Power for the properties, which range in age from 18 to 35 years old, had come from Enmax and another energy supplier, Epcor. But Albertans got a chance to choose their power company when, faced with energy supply shortages and high prices, the province introduced energy deregulation in 2001. That is when Ivanhoe Cambridge saw an opportunity to help its retailers and the environment. Ivanhoe signed a deal with Enmax, which has a wind power farm in south Alberta.

But both companies wanted more, and in June 2004 Ivanhoe Cambridge and Enmax formed the Green Power partnership to create a marketing program promoting both Ivanhoe and Enmax. “We wanted to position ourselves as an environmental leader,” Sadlowski said.

Enmax, for its part , saw an opportunity to promote its Greenmax program to other customers, says James McKee, vice president of marketing and sales.

“It is a core of our brand to be a leader in green power,” McKee said. The agreement with Ivanhoe Cambridge “generates awareness for the folks going into the mall and seeing the logos and advertising.”

To announce the deal, the two companies collaborated on a marketing program and used the slogan “Your mall. Your future. Our commitment.” A press conference was held in June 2004. Staff wore T-shirts branded with the new logo. The general managers of the six malls participated in the ceremony, as did Enmax President Sean Durfy and Kim McInnes, executive vice president and CEO of Ivanhoe Cambridge.

In addition, Ivanhoe formed a relationship with Eco Kids, a Canadian organization that educates children about protecting the environment, and reproduced its literature, including tips for protecting the environment, on food court tray liners.

Recycling bins are throughout the malls, and Earth Day is now celebrated at the six Alberta centers. Enmax also offers its residential power customers discount cards at various retailers associated with the environment, such as florists.

The agreement runs for five years, and Enmax and Ivanhoe Cambridge are looking at other ways to collaborate. “This relationship has been going on for a year,” McKee said, “but we’re just getting into the marketing.”