Jess McDiarmid
Northern News Services
Published Friday, January 25, 2008

YELLOWKNIFE - The city is considering a wood pellet heating system for the pool, community arena and curling rink that would save an estimated $93,000 a year and reduce emissions from city facilities by 19 per cent.

At Monday's priorities, policies and budget committee meeting, councillors debated whether to award a contract to Arctic Green Energy to purchase and install a wood pellet boiler that would heat the Ruth Inch Memorial Pool and the Yellowknife Community Arena and Curling Rink. Under the terms of the contract, the company would operate the boiler, selling the heat to the city while operating and providing maintenance training to city staff for a year.

It also includes a pellet supply contract that expires in 2011.

The overall cost of the project is $537,500 and the go-ahead is contingent upon receiving $240,000 the city has applied for from the Municipal Rural Infrastructure Fund (MRIF).

"It's a really good deal for the city," said Coun. Kevin Kennedy.

He added that because the payback period - when savings would pay off the costs of the system, which is roughly six years without outside funds - was so short, he didn't think the proposal had to be contingent on receipt of MRIF funding.

Several other councillors said they would support moving ahead with the plan even if the MRIF cash didn't come through, though administration said approval was fully expected. The remainder of the cash needed for the system is available through the city's Community Energy Plan budget.

That plan calls for the city to reduce 2004 emissions from its operations by 20 per cent by 2014, meaning the wood pellet boiler system would leave it just one percentage point short of the target, six years ahead of schedule.

"One of the reasons it's exciting is the reduction of greenhouse gases," said Kennedy. "Perhaps we weren't ambitious enough in our Community Energy Plan."

Two facilities in Yellowknife, the North Slave Correctional Facility and Northern Property's Bison Hill Apartments, have successfully used wood pellet heat for more than a year and Sir John Franklin high school is adding a system next month.

Mark Henry, community energy co-ordinator for the city, said the system isn't without risks but they've been carefully considered.

Pellets have to be shipped 800 kilometres north from La Crete, Alta., and are subject to market fluctuations much like fuel. But the pellet manufacturer is "solid" and long-term supply is considered stable.

"We're kind of putting ourselves out there," said Henry. "But it's related to our goals as an organization to reduce emissions."

Council is scheduled to vote on approval of the contract at its Jan. 28 meeting.