In spite of being a greenhouse gas itself, a new liquefied natural gas tank has been approved for the Inuvik Power Plant under the GNWT’s Greenhouse Gas Grant program.
An announcement that Northwest Territories Power Corporation has gotten approval for a $878,000 grant throught he program was released Dec. 13. The new LNG tank will reduce the amount of electricity generated in the town from the much more-carbon intensive diesel fuel by 25 per cent. It’s predicted the new tank will reduce the diesel used in Inuvik by up to one million litres each year, and reduce the town’s carbon footprint by up to 606 tonnes of greenhouse gas emissions annually.
“Adding additional LNG capacity will reduce GHG emissions as we use less diesel generation,” said NTPC president Cory Strang. “Not only will this project assist with achieving the NWT 2030 energy and climate change goals, but it also increases system resiliency and helps to maintain rates as we use a lower cost fuel source.”
It’s estimated the new tank will provide NTPC with a cost savings of $303,000 each year. NTPC will cover the remaining $383,300 cost of the $1,261,300 installation.
Designed to support emission reduction projects, the GHG Grant Program for Governments allows governments of various levels from municipal to Indigenous to apply for support up to 75 per cent of eligble costs. It has a budget of $1.8 million each year to allocate.
“The GNWT is committed to an energy system that contributes to the territory’s economic, social and environmental well-being, while doing our part in the transition to a lower-carbon economy,” said Minister of Infrastructure Diane Archie. “This program is assisting the NWT in developing projects that result in GHG reductions but also make communities more sustainable and save program participants money. It’s a win-win for the territory and program participants.”
The new tank is expected to be in service by 2023.