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Geothermal 'on the shelf'
Council rushes through new application for district energy funding

Simon Whithouse
Northern News Services
Published Friday, December 14, 2012

SOMBA K'E/YELLOWKNIFE
The centralized district heating system planned to heat 39 downtown buildings is now "on the shelf" after Mayor Mark Heyck acknowledged Monday the city is scaling back the project and now looking only to heat city buildings with a centralized system.

City council unanimously approved an administration recommendation to re-submit an application to Natural Resources Canada's Clean Energy Fund in order to help pay for a project that would ultimately heat 12 city buildings with waste wood and cardboard from the landfill.

"Essentially we are looking at trying to take advantage of funding that might be available from the Clean Energy Fund to proceed with a project on a smaller scale than the centralized district heating program that was presented to council almost two years ago," said acting senior administrative officer Dennis Kefalas.

Buildings included in the planned project are the Multiplex, Fieldhouse, Pumphouse No. 4, city garage, Ruth Inch Memorial Pool, Yk Community Arena, the Pine Point garage, fire hall, the community services and municipal enforcement warehouse, Lift Station No. 5, the water reservoir on Reservoir Road and the new garage at the public works site.

The city applied for a $14.1-million Clean Energy grant in September 2009 to fund the geothermal portion of the district energy project that would have tapped warm water from underground at Con Mine to heat buildings downtown. The city was successful in securing the grant but it was contingent on voter approval in a city-held referendum to borrow up to $49 million to fund the rest.

Last October, Natural Resources Canada requested either reaffirmation for the district energy system from the new council, or a submission for a new project that would fit into the funding criteria by Dec. 31.

An interim feasibility study on the scaled back district energy system is expected mid-January with a final report on the direction of the project in March.

At that time council will make a decision on whether it wants to actually proceed. It is uncertain when the federal government will reply to the application, although it is expected to be before March 31, Heyck said.

Heyck said the concept for the new district energy system is still in place with hot water running through pipes between city buildings. If council approves the project, the laying of extra pipe for district heating will take place in 2014.

"In 2014 we have our corrugated replacement program from the Multiplex to the arena and pool and that would be an opportunity, if we were to go ahead with the project," said Heyck. "We would essentially be laying one more pipe beside the other pipes that are going in."

Heyck said the project could potentially save between $500,000 and $800,000 in heating costs.

Kefalas told council the city has had a hard time acquiring customers for the downtown district energy project from the private sector, especially after the 2011 referendum failed, and securing a viable energy source, which had originally been a combination of geothermal and biomass.

There was some concern among councillors Monday, particularly Phil Moon Son, Adrian Bell and Linda Bussey about the lack of time they had to review the amended project. Council only received notice of the application last week and saw initial plans for a project Monday afternoon before approving it that night.

Yellowknifer could not obtain the eight-page document of the plan by press time, but Heyck said it includes preliminary costs for the project, potential fuel sources and the list of city facilities to be connected.

"I agree that the vision of this project is a great thing, but I had only about four or five days to review this application," said Moon Son, adding he had been critical of the last council for approving items too hastily.

Bell concurred, saying it sounded to him like the project put before council was a "plan B." He said the lack of information was a similar situation to the events leading up to the 2011 referendum.

"The similarity with the last attempted project is striking in terms of us racing against a deadline," said Bell. "That provides me a great deal of discomfort and I am not happy with that."

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