The City of Port Alberni has been looking for ways to reduce the community's greenhouse gas emissions, to capture carbon credits, to create green jobs and to develop non-tax revenue sources. An ‘Integrated Resource Recovery Study’ done in 2010 showed that a fibre based biomass district energy system was feasible and would accomplish those goals.

District energy systems bring heated water to buildings from a central source, through underground, insulated pipes. These systems are common in Europe, and are now beginning to catch on in Canada. District energy in Port Alberni could provide heat and hot water to buildings such as West Coast General Hospital, North Island College, the Athletic Hall, Multiplex, Aquatic Centre, Library, Echo Village, Heritage Place, Fir Park Village, Pioneer Towers, and others.

The feasibility study for this project concludes it would decrease the community's greenhouse gas emissions by approximately 5,100 tonnes/year; conserve 60,000 GJ/year of natural gas and 122 MWh/year of electricity; divert 2,800 tonnes/year of wood waste from landfilling; retain greenhouse gas offsets of $65,000/year that are currently paid to external organizations; generate non-tax revenues and create 53 construction jobs and 2 permanent positions.

Because of the ‘green’ aspects of the project, the City is applying for $5 million in funding from the Federation of Canadian Municipalities Green Municipal Fund and the Gas Tax Innovation Fund. The project has a $10 million total cost.