Exploring Barge Delivery of Biomass to Remote Communities
In 2023, the Government of the Northwest Territories (GNWT) partnered with Nihtat Energy Limited to study whether shipping wood pellets by barge could be a cost-effective, low-carbon heating option for 12 remote communities along or near the Mackenzie River. These communities include Tuktoyaktuk, Inuvik, Aklavik, Fort McPherson, Tsiigehtchic, Fort Good Hope, Norman Wells, Tulita, Wrigley, Fort Simpson, Jean Marie River, and Fort Providence. At the time of the study, Marine Transportation Services (MTS) and Cooper’s Barging were the two main barge operators on the Mackenzie River, providing services to six
of the 12 communities included in the study.
For each community, the study looked at:
- Overall heating needs
- The logistics of delivering wood pellets
- The total delivered (landed) cost of pellets, to be compared to heating oil
Results showed that in most communities, wood pellets are a cheaper alternative to heating oil. The study also found that in the Sahtu and Dehcho regions, private businesses have successfully created supply chains with little or no public funding, although the GNWT is a major customer.
The study also highlighted the following challenges:
- Low water levels on the Mackenzie River (linked to climate change) have disrupted barge service in 2023 and 2024 and will likely continue to affect the availability of barging as effects from climate change intensify.
- Extreme weather and warmer temperatures (also fueled by climate change) are affecting road access and ice roads, delaying pellet deliveries.
- MTS’s costs are higher than Cooper’s, partly due to larger boats and a cost-recovery pricing model.
- NWT currently relies on one main pellet supplier (based in Alberta), which poses a long-term supply risk.
One key recommendation is to increase storage capacity, especially in the Beaufort-Delta, to help prevent future supply disruptions.
The study supports one of the Strategic Objectives of the NWT 2030 Energy Strategy by looking at ways to advance towards the goal of reaching 40% share of renewable energy used for space heating in the building sector by 2030. The study also supports the availability of cheaper heating options such as biomass across the NWT as affordable energy is one key element of the vision of the NWT 2030 Energy Strategy.