A proposed LNG power generation facility in Fort Simpson is receiving an influx of federal dollars as part of a plan to replace the town’s ageing diesel plant.
The federal government announced on Wednesday $31.3 million through its Arctic Energy Fund for a new liquefied natural gas power plant. The NWT Power Corporation is contributing $10.4 million.
The new power plant is forecast to run on LNG 90 percent of the time and will include two backup diesel generation units, according to a news release.
“The existing diesel plant in Fort Simpson has become vulnerable to erosion along the Mackenzie River and is nearing the end of its operational life,” the news release stated.
In a video posted to Facebook, NWT MP Rebecca Alty said the new plant “will reduce emissions by lowering reliance on diesel and ensure the community has dependable power for years to come.”
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In 2019, the federal government committed funding worth more than $11 million for the LNG power plant from the Arctic Energy Fund. Nearly $4 million was also contributed by “other” funding sources, according to a 2019 document associated with the plant. Whether the money from 2019 is included in this latest funding for the project was not immediately clear. (This article will be updated when the federal government clarifies how much of the announcement is new money.)
The federal news release noted the GNWT has provided key funding applications and prefeasibility studies to move the project forward.
“The new plant will resolve several issues that will enhance quality of life for our Fort Simpson customers, including a reduction in greenhouse gas emissions, less noise in the community and places the new plant away from the riverbank, which has seen erosion over the years,” Cory Strang, the NWT Power Corporation’s boss, was quoted as saying in the press release.
“The new plant will also be better able to integrate future renewable projects into the local electricity grid.”
The news release noted that making the switch to LNG is aligned with the GNWT’s goals to reduce greenhouse gas emissions and communities’ reliance on diesel generation.
LNG is still a fossil fuel which, when burned, adds planet-warming greenhouse gas emissions to the atmosphere.
