A report on phase 3 of Heat Quesnel was read at last (Tuesday) night’s City Council meeting.
Erin Robinson, the Forestry Initiatives Manager, says the project was now shelf-ready.
“Phase 3 of Heat Quesnel was completed in the summer of 2024 and Council received an update from TorchLight Bio Resources and West Fraser Mills on July 30th. It outlined a path forward for Quesnel to have district heating throughout North Quesnel utilizing heat from Cariboo Pulp and Paper. This scenario involves acquiring a new turbine for Cariboo Pulp and Paper.”
Robinson noted that phase 4 would involve costing of pipes for the system, setting up a utility to manage the system, and working with community of engagement and partnerships for moving to a new system.
However, she says the timing just wasn’t right.
“Phase 4 will be put on hold due to current factors in the operating environment such as: relatively low natural gas prices, uncertain carbon pricing, and the political relationships with the USA and uncertain grant and funding environment.”
Robinson said that the estimated cost of the project is 63 million dollars with an annual operating maintenance cost of around 2.1 million.
“Without a significant capital investment from outside sources, the project is too expensive for the City to undertake at this time. However, if a time comes in the future when infrastructure development for economic development is deemed essential, the City, West Fraser, and other partners will be ready to respond.”
The report was for information only and there were no questions from Council.
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