Yukon Energy announced Tuesday it’s eliminating the North Klondike Highway site as an option for its new battery storage project.

It also announced it was beginning the process of attracting qualified firms to carry out the project by issuing a request for proposals which will close Feb. 15.

“In Stage 1, vendors are being asked to submit a proposal demonstrating their technical capability, experience and corporate capacity to deliver a battery designed to meet Yukon Energy’s operational requirements and Yukon’s northern climate,” says the press release.

“Qualified vendors chosen in Stage 1 of the process will be invited to submit a proposal in Stage 2, which will evaluate vendors based on technical specifications, price, First Nations benefits and other components.”

The release points out the North Klondike Highway site adjacent to the Takhini Substation was eliminated because of public opposition, leaving two sites along Robert Service Way as the remaining options.

The intent is to have the battery operational by the end of 2022, says the release.

“It feels great to reach this critical milestone,” Andrew Hall, the president and CEO of Yukon Energy, said in a statement.

“We knew when we started this project that the most difficult and time-consuming part of it would be sourcing the right kind of battery for our unique needs and climate.

“Issuing this RFP now sets us up to have the battery installed and in service by the end of 2022 like we always planned.”

The battery is identified in the Crown corporation’s 10-Year Renewable Electricity Plan to meet the territory’s growing energy needs. The cost is estimated at between $27 million and $30 million.

The project calls for a seven-megawatt storage battery that can be charged during periods of excess generation in off-peak hours and used to help meet the load in periods of peak demand, particularly in the winter.

The release notes once installed, the battery storage unit will be the largest in the North and among the largest in Canada.

“The new seven-megawatt battery is a critical investment in Yukon Energy’s ability to meet the growing demand for electricity and to secure Yukon’s energy future,” Energy, Mines and Resources Minister Ranj Pillai said in a ministerial statement to the legislature Tuesday.

“The battery will help maximize the use of renewable electricity to meet peak demands for power, burn less diesel fuel, and improve the reliability of our grid. The battery will also provide stability to the grid as new intermittent renewables are added.”

Pillai said the battery is a critical building block to support future renewable electricity projects and Yukon Energy’s goal of generating an average of 97-per-cent renewable electricity by 2030.

It’s expected the battery will reduce greenhouse gas emissions from diesel and natural gas generation by 20,000 tonnes during its 20-year life.

Pillai also tabled Yukon Energy’s 10-year Renewable Electricity Plan Technical Report.

Both of the remaining site options are located on First Nation settlement and will be subject to a lease with the First Nation.

Settlement land was chosen as part of Yukon Energy’s commitment to include First Nations in economic development and investment opportunities whenever possible, the corporation has explained in the past.

One of the sites is across Robert Service Way from Yukon Energy, in the area the city uses for a snow dump. The site is owned by the Ta’an Kwäch’än Council.

The other is at the top of the roadway, near the intersection of Robert Service Way and the Alaska Highway. The site is owned by the Kwanlin Dün First Nation.

Tuesday’s release indicates site selection will be announced once the lease arrangements with each First Nation have been finalized.

The seven-megawatt battery is designed to provide as much electricity as generated by the largest hydro unit at the Whitehorse Rapids Dam, so that if the unit were to go down, the battery could be used to supply an equivalent amount of electricity temporarily.

The battery unit will be able to provide 40 megawatt hours of electricity, or 20 megawatt hours for two hours or five megawatts for eight hours.

The unit would be available at the flick of a switch in case of a power outage.

The federal government has committed $16.5 million for the project, with Yukon Energy picking up the remaining $10 million to $13.5 million.

Operational costs at both sites are estimated at $214,000 annually, with an additional $214,000 paid annually in property taxes to the City of Whitehorse.

Not having to pay property taxes to the city was one of the advantages of the Klondike Highway site, as it’s outside city limits.