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SOMBA K'E/YELLOWKNIFE
Arctic Energy Alliance executive director Louie Azzolini has been beside himself since a new wood pellet boiler was installed at the company's office a month ago.

Louie Azzolini shows the new WoodMaster wood pellet boiler system at the Arctic Energy Alliance building. He says from a purely economic standpoint, businesses may now begin to look at getting a similar system, which cut costs by half compared to using heating oil. - Simon Whitehouse/NNSL photo

If the alternative energy company's yearly fuel savings from the appliance continue as he expects, he said it may set a precedent for other businesses to follow.

This could lead downtown businesses to explore their own methods of heating facilities, as opposed to working with the city on a district energy system, he said.

"I see local businesses who want to save money (getting their own systems) and doing something and taking action on their own," said Azzolini. "If we are speaking in terms of a district energy system as opposed to the city-wide district heating system, ultimately it is going to become an economic decision that businesses are going to make. They can only wait so long before they take decisions on their own."

Azzolini said the recent installation, which is designed to gasify four tonnes of wood pellets over four months at his organization's building, will lead to the cutting of heating costs by 50 per cent. Traditionally, heating the building has cost $26,000 to $27,000 a year, he said. With the new wood pellet boiler system, he said it will now cost $13,000.

"When businesses are looking at that kind of savings, it is kind of hard for us not to take action," he said. "Our pellet boiler system will pay for itself in two to three years and in the event that we are not tenants, because of how it is designed, we can put it on pallets and move it to wherever we go."

Since the installation, installer Bruce Elliott, owner of Arctic Green Energy, said he has had 10 inquiries about wood pellet boiler systems. He wouldn't say who the interested parties are, but he added most of them are downtown businesses.

Redcliff Developments, which is working on townhouses at Bayview Estates, has inquired about the system.

"We're definitely looking into it as an option, but we have definitely not made a decision yet," said Redcliff co-owner Jordan Harker.

He said townhome owners are interested in energy efficiency and the company is looking to make a final decision on how the homes are heated within four or five weeks.

Other downtown building owners have not jumped on board with their own heating systems as of yet.

Kelly Hayden, vice-president of commercial property with NPR Limited Partnership, said he had been expecting to hear more about the city's plans for district heating during the election but was disappointed when the discussion centered around the politics of the geothermal referendum of 2011. He still hasn't heard from the city on the file since the early summer.

"We worked with the city to look at district heating and we modeled up a price that if we did it ourselves, here is a ballpark figure," he said. "We haven't done anything like (setting up our own district heating system).”

Spencer Decorby of Polar Developments said there have been no developments on working with the city on the proposed district energy system since he was contacted by Yellowknifer in August, but he says his company is currently constructing its own wood pellet boiler system for the Anderson Thompson Tower. It should be functioning by mid-winter and, depending on how much is saved based on the price of oil, he says another wood pellet boiler system could be used in his other high-rise building in the future.

"It is the same as the last time in that we are trying to proceed with our own wood pellet boiler system at the Anderson Thompson," he said. "If everything goes good with this one, we might consider doing it again in a few years from now.

"The more the price of oil goes up, the more we would save."

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