On June 7, 2010, City Council approved the next steps towards development of a wood fibre-based downtown district energy system that would provide carbon neutral green energy to buildings in downtown Prince George.
Construction of the District Energy System (DES) began last July, 2011. The Peaking Backup Energy Centre on George St was completed March 2012.

This building houses our distribution pumps and peaking backup natural gas fired boilers. These are in the system to provide hot water to the District during times when Lakeland Mills is shutdown for routine maintenance or during times of very cold weather when there is high demand for heat.
The distribution piping (DPS) from Lakeland to the Energy Centre, City Hall, Civic Centre, Coliseum, and the Four Seasons Pool was completed May 2012 along with the Energy Transfer Stations (ETS) in each building. We are now providing space heating and domestic hot water to these buildings using hot water heated by Sinclar Group Forest Products' Lakeland Mills energy system using woody biomass. The District Energy System has optimized the system already in place at Lakeland Mills operation to burn sawmill residues with greater efficiency and reduced emissions.

The District Energy System will:
- reduce particulate emissions in the city airshed
- permit the City and its customers to meet greenhouse gas reduction goals
- reduce the City's reliance on non-renewable fossil fuels
- help position the City as a leader in bioenergy application
- assist with energy security and stability
- keep energy related funds in the community
- assist with downtown renewal
- generate non-tax revenue for the City