The Yukon government has given final approval to Yukon Energy’s Whitehorse liquefied natural gas project.
The government announced yesterday that it has accepted the Yukon Environmental and Socio-economic Assessment Board’s recommendation that the project go ahead.
The board suggested in January that 13 conditions be attached to the project licence, including requirements for greenhouse gas and air quality monitoring, employee training and the development of an emergency plan.
The government has accepted each of those recommendations.
The $35 million project will replace aging diesel generators with ones that burn natural gas by late 2014 or early 2015.
Yukon Energy expects to save $1.3 million in fuel costs in the first year of operation, with that figure increasing dramatically as demand for peak power rises.
Critics have argued that the project is short-sighted and will delay necessary investments in renewable energy infrastructure.
Some also worry about the consequences of natural gas that has been produced through the controversial method of hydraulic fracturing, or fracking.
Yukon Energy will source its gas from a liquefaction facility near Vancouver that uses a mix of fracked and conventional gas.
The Yukon Utilities Board approved the project in May.