WHITEHORSE, YUKON--(Marketwired - July 4, 2013) - The Yukon government has approved an addition to the borrowing limits for the Yukon Development Corporation (YDC) and the Yukon Energy Corporation (YEC) in order to replace two aging diesel electric generators with new modular natural gas engines.

"The boards of the Yukon Development Corporation and Yukon Energy Corporation have determined that using natural gas fueled generators will help reduce future costs and emissions," Minister responsible for the Yukon Development Corporation Brad Cathers said. "The Yukon government has provided authorization for the project to proceed to the next stage, which includes review by both YESAB and the Yukon Utilities Board."

"Replacing existing on-grid diesel generation with a lower carbon technology is a commitment identified in our Climate Change Action Plan," Environment Minister Currie Dixon added. "Replacing diesel with natural gas will help reduce our carbon footprint in the short-term as the government works towards its longer term goal of increased hydro capacity."

The Yukon government has approved, in principle, the corporations' request to include up to $39.2 million in 2013 and 2014 as part of Yukon government's debt limit in order to meet YDC/YEC's construction financing requirements for the LNG project. This financing will allow the corporations to replace the aging diesel backup generators at the Whitehorse hydroelectric facility with cleaner, greener, quieter, more affordable and more reliable generators that burn natural gas.

"Backup generators are crucial for ensuring continuous services, especially when demand exceeds our hydro capacity," Yukon Development Corporation chair Joanne Fairlie said. "Liquefied natural gas replacements are the best choice when you weigh the important factors of air quality, noise, safety and cost."

"The backup diesel generators have reached the end of their lives," Yukon Energy Corporation chair Piers McDonald said. "By replacing them with natural gas, we expect to save Yukoners $4.2 million in fuel costs each year by 2017, compared to the anticipated cost of diesel generation."

For more information about replacing the backup generators, visit http://www.yukonenergy.ca/energy/lng.

Contact Information:

Matthew Grant
Cabinet Communications
Government of Yukon

Chris Wearmouth
Communications, Energy,
Mines and Resources
Government of Yukon