Yellowknife City Council is once again exploring a district energy program.

Councillors are trying to find out if it's feasible to use material from the dump, such as wood and cardboard, to heat and power the fire hall, Multiplex, field house and public works building.

Mayor Mark Heyck said the system could potentially save up to $800,000 a year in power and heating costs.

"Power is such a huge component of the city's cost drivers that if we can start to address that in some of our facilities with materials from the dump and co-generation, the savings could be huge," he said.

Federal clean energy funding would cover up to half the cost of the program.

A preliminary report on whether such a system would work is due next month.

The previous city council wanted to use geothermal and pellet heat to warm downtown buildings, but residents voted down a nearly $50 million borrowing plebiscite for the project.