A system to distribute heat to municipal buildings and businesses to downtown Haliburton will be expensive.

TorchLight Bioresources made the presentation to Dysart et al council, and a district energy system could cost up to $5 million.

The system would burn wood chips purchased from the Haliburton Forest in a boiler, and the heat would be distributed through pipes to 44 properties.

Dysart is applying for a grant under the Greenhouse Gas Emissions Challenge Fund that could cover up to $2.5 million.

Reeve Murray Fearrey says the municipality will have to look for other financing options.

Haliburton Forest Managing Director Malcom Cockwell says being able to put the forest’s wood chips to good use is a win-win for everyone.

TorchLight Bioresources is managing the project and says this could end up saving the municipality and businesses between 20-to-40 per cent on annual heating costs.