Mr. Speaker, energy costs are a concern to all of us. The Department of Public Works and Services has an opportunity to test a cheaper alternative energy source this coming year at the North Slave Correctional Centre.
Public Works and Services and the Department of Justice recently received a proposal from a Yellowknife-based company, Arctic Green Energy, to provide a wood pellet boiler system at the North Slave Correctional Centre.
Providing heat for buildings using wood pellet boilers has been common practice in Europe for decades, with systems reliably heating numerous facilities such as hotels, office buildings and recreational facilities. Money is saved by using less expensive wood by-products, specifically crushed sawdust pellets. They also significantly reduce greenhouse gas emissions.
The North Slave Correctional Centre needs a boiler to provide backup heat. Capital of $225,000 was approved for this boiler. Arctic Green Energy proposed to provide a wood pellet burning boiler system instead of installing a third oil-fired boiler. It would be the primary heating unit and would provide 50 percent of the heating requirements for the facility.
Arctic Green Energy will be responsible for the design, installation, operation and maintenance of the wood pellet system at no cost to the Government of the Northwest Territories, and for provision of the pellets. Arctic Green Energy would act as an energy service provider, billing the GNWT for heat supplied to the facility.
The system will include a storage unit to hold adequate wood pellets for one month's required output in winter conditions. This should enable the system to continue to operate during ferry and ice road closures.
We anticipate many benefits from the wood pellet system. For example:
- • Capital savings of $225,000 from the original third boiler project;
- • Estimated $50,000 annual savings in heating costs for the facility; and
- • Estimated reduction in greenhouse gas emissions of 1,450 tonnes annually.
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The new wood pellet boiler system will be operational by November 1, 2006. After one year, the system's effectiveness will be evaluated. If it is efficient and reliable, we will consider this heating system for other major projects. If it is found not to meet our needs, the system will be removed and the deferred oil-fired boiler will be installed.
Public Works and Services, together with our GNWT client departments, is committed to reducing energy costs in buildings for the benefit of all northerners. Thank you, Mr. Speaker.
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