The City of Nelson is seeking other options to reduce borrowing costs on its planned district energy system.
The Biomass Hot Water Distribution Project could cost up to $6 million and the city can get a low-cost loan from the Municipal Finance Authority.
But Nelson Hydro GM Alex Love says they’ll also try a different federal scheme that could secure about $4.7 million.
The energy system would burn wood waste from local mills and pipe hot water to heat various large public buildings in town.
That would save on big natural gas costs.