Annual REPORT
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VISION. Innovation. Application. Our vision is a Canada with a thriving advanced biofuels industry that is socially, economically and environmentally sustainable. Our mission is to support the growth of Canada’s advanced biofuels industry through coordinated research, innovation, effective education, smart policy and strategic partnerships.
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TABLE OF CONTENT
Our Approach
transforming visions into actions
Showcase Projects
creating successes that shape the future
Government Involvement
recognizing the importance of policy
Business Development
engaging industry and investment communities
Training and Education
developing a highly qualified workforce
Networking
building partnerships and opportunities
Media and Communications connecting to the world
BioFuelNet Phase II
implementing strategic changes
Annexes
A-Board and Committees B-Network Community C-Network Researchers D-Financial Statements
who we are BioFuelNet is funded by the Government of Canada through the Networks of Centres of Excellence program, a joint initiative of the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research, the Social Sciences and Humanities Research Council and Industry Canada. The goal of the NCE program is to mobilize Canada’s research talent in universities, industry and government to create new economy jobs, stimulate growth and improve the quality of life of Canadians.
From left to right: Alessandra Hechanova (Intern, Communications and Public Relations), Annie Webb (Manager, Communications and Pulbic Relations), Xiaomin Zhou (Manager, Financial Operations), George Mahmourides (Manager, Business Development and Knowledge Transfer), Guillaume Champeau (Coordinator, Administration and e-Communications), Jorin Mamen (Executive Director), Terry McIntyre (Officer, Government Liaison and Quality Assurance) and Donald Smith (CEO and Scientific Director).
BioFuelNet is proudly hosted by McGill University in Montreal, Quebec, Canada.
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37.21
tonnes co neutralized 2
through carbon credits, making our Advanced Biofuels Symposium carbon neutral, a first in Networks of Centres of Excellence history. 6
Introduction by
DR. DONALD SMITH CEO & Scientific Director
I It’s hard to believe, but BioFuelNet has already passed the mid-way point of our first five-year grant; time really flies! It seems like just yesterday that we stood next to Minister Goodyear that spring morning in 2012 as he announced the creation of a McGill-hosted pan-Canadian biofuels network involving 25 universities and multiple partners from government, industry and international organizations. Since that time, thanks to the strength of the network’s community, we have witnessed fantastic progress towards achieving the network’s objectives. The present report highlights, for the reader, some of these accomplishments. For one thing our network has grown in size. Since the original announcement, an additional two Canadian universi-
ties have joined the network - Dalhousie and Lakehead - bringing our total to 27 (the rest can be found in the annexes of this report). Notably, our network now involves 142 partner organizations, 130 researchers, and 277 students last year alone, all of which has resulted in 160 publications that were either in-press or published this past year (an additional 100+ are in preparation or have been submitted). However, our impact is being felt more than just through academic journals. For example, as the primary national network covering all elements of the advanced biofuels value chain from the growth of the biomass to the consumption of the final product, BioFuelNet is
We have witnessed fantastic progress towards achieving the network’s objectives. uniquely positioned to offer a comprehensive online course, which we dubbed biofuels ABCs – the Advanced Biofuels Course. For the typical student, the ABCs course provides valuable insights about the challenges being faced all along the value chain, and catalyzes thought pro-
cess for how strategic collaborations can clear these hurdles. This report will help you learn more about the dozens of BioFuelNet workshops held across the country, the technical advances reported from our research, the ways we are using digital media to improve internal communications and to get our message out to the world, and – most importantly – how to get involved moving forward. Over the next couple of years, BioFuelNet will not rest on its laurels; rather, we have already begun the process of evaluating Phase I of our program (defined as April 2012 – March 2015), and we’ll be launching a streamlined research program in April 2015 that will see us through the end of this first grant and hopefully through a renewal period a couple of years down the road. On behalf of the network’s board, management, and the network as a whole, we hope that you will join us in our quest to achieve a thriving advanced biofuels industry in Canada. Together, we can do it!
Kind regards,
Dr. Donald Smith, CEO & Scientific Director.
introduction
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THE BIOFUELNET APPROACH We work to synchronize research and innovation as well as create strong strategic partnerships with industry
economy sector through training opportunities that complement their classic scientific education. With a clear focus, attainable goals and expertise across academia, industry and government, BFN’s multidisciplinary group is providing an essential hub for the development of a thriving biofuels industry in Canada.
Spearheading National Research & Development
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Our Approach
ioFuelNet (BFN) is a national network that is paving a sustainable path toward the commercialization of advanced biofuels. BFN brings together academic researchers, industry professionals and government representatives in order to harness the opportunities and address the barriers to sustainable biofuels production. Biomass producers, conversion scientists, engine specialists and sustainability experts all work together under the umbrella of BFN in order to harmonize and focus their research, as well as create strong strategic partnerships with industry. Just as innovation is the key to progress, a bright and well-trained community of professionals creates the conditions for discovery. BFN provides a springboard for High Quality Personnel (HQP) to find entry into the emerging bio-
Advanced biofuels research requires a multitude of experts in many different fields and sectors. BFN invests in research projects that involve the entire biofuels value chain by addressing the following core themes: Feedstock, Conversion and Utilization. A fourth research theme addresses the socio-economic and environmental sustainability (SEES) of Canadian biofuels production. While each represents a cluster of disciplines, our structure fosters collaboration. Our research projects are organized across four regional platforms; East, West, Central and Prairies. While enriching the network as a whole, this approach provides the opportunity for focus on local biofuel production. The figure to the right illustrates how the four themes and regional platforms intersect. The interaction between the themes and platforms helps catalyze creativity and innovation.
Utilization
SEES
Conversion
Feedstock
West Prairie Central East
Social, Economic, Environmental Sustainability
Advanced Biofuels
BFN‘s technology platforms each contain elements of feedstock, conversion and utilization. The SEES group provides analysis for each of these steps in the value chain. *See the 2013 Annual Report for more info on BFN Themes and Platforms.
Our Approach
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research projects Drawing on the expertise of over 130 leading researchers and 277 HQP (highly qualified personnel) our research projects cover all aspects of the biofuel value chain, from feedstock to life cycle analysis. This body of research makes BioFuelNet Canada the largest advanced biofuels research network in Canada.
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The Pan-Canadian Feedstock Trials National model uses marginal lands to test feedstock for future biomass production
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Showcase Projects
s BFN is a network that spans the entire country, the opportunity arose to launch a new national-scale collaborative research project this year: the pan-Canadian feedstock trials, an exciting new project involving both agriculture and forestry research. The trials are taking place in four distinct climatic regions across Canada, on lands that are classified as marginal lands (class 3 or 4) and that are not fit for growing food. This year, all four sites were established with two clones of hybrid poplar and two varieties of switchgrass, in addition to region-specific species grown on all sites. The sites are located in Edmonton, Alberta; Guelph, Ontario; Kemptville, Ontario; and Nappan, Nova Scotia. Partners include Agriculture and Agri-food Canada and the Canadian Wood Fibre Centre, in addition to several private partners. Growing the same species in these four
separate regions will help the researchers determine the most – and least – hospitable growing conditions for the plants. “All inputs, like labour, fuel, pest controls, etc., used in establishing, maintaining and harvesting the crops at the four test sites are being meticulously monitored so that a life cycle analysis of the energy, economic and carbon balances of the productions systems can be estimated,” says Dr. Kevin Vessey, the trial’s primary coordinator based out of
Saint Mary’s University in Halifax. The trial will deliver critical data on the performance of select varieties in their regions over multi-year test period. Arguably most important of all, they’ll assess the cost-effectiveness of growing these crops and selling them in the local market. If all goes as planned, land owners can use this information to produce biomass on an economically viable scale to supply the emerging liquid biofuel industry in Canada.
Contributing Researchers: Andrew Gordon, Yousef Papadopoulos, Derek Sidders, Naresh V. Thevathasan, Ashraf Tubeileh and Kevin Vessey.
Showcase Projects
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GREENER HEATING FOR GREENHOUSES Dr. Mark Lefsrud, Bioresource Engineering (McGill University)
C A new control system for biomass furnaces leaves greenhouses with a smaller carbon footprint
urrently, greenhouses aren’t all that green when it comes to energy consumption. Heating is one of the highest operating costs for greenhouse producers, sending many on the hunt for lower cost alternatives. Who better to rise to the challenge than researchers at McGill University’s Department of Bioresource Engineering? In their pursuit of a better, more efficient heating system for their greenhouses, they have developed a greener way to use wood pellets. Not only does their new system, the Biomass Furnace Flue Gas Emission Control System (GECS), recover heat and purify emissions, it also cycles carbon dioxide (CO2) back into the greenhouse, enhancing plant growth and increasing yields. “We confirmed that the GECS improves the thermal efficiency of the furnace and reduces atmospheric CO2 emissions,” says Dr. Mark Lefsrud, the engineering professor leading the project. This means both a lower heating bill and a lower carbon footprint. It’s also very cost-effective: “The capital investment required for the GECS is far lower than that of alternative heating systems currently on the market”, adds Lefsrud. Furthermore, when the exhaust from the furnace chimney was pumped directly into the greenhouse, the air remained well within Health Canada’s air quality guidelines for acceptable levels of indoor gases and contaminants. Lefsrud has high hopes for the new technology. “I’m confident our system will make it economically feasible for greenhouse operations of all sizes to use wood-pellet biomass furnaces.”
Contributing Researchers: Julien Bouchard, Louis-Martin Dion, Francis Filion, Antony Glover, Mark Lefsrud, Quoc Nguyen and Yves Roy.
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Showcase Projects
Showcase Projects
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Ford’s wonder diesel Engine Dr. Ming Zheng, Clean Diesel Engine Laboratory (University of Windsor)
A greener, adaptable engine that’s ready for any biofuel/diesel blend the world throws at it
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Showcase Projects
hese days, fuel standards seem to vary almost as much as the cars themselves. Each country has its own standards for biofuel content, resulting in a mishmash of fuel compositions. Thus, when a company makes vehicles for sale abroad, the engines have to work with the host country’s standards, whatever they might be. “Creating efficient engines that accommodate all these different fuel types is an enormous challenge,” says Dr. Ming Zheng, co-founder of the state-of-the-art Clean Diesel Engine Laboratory at the University of Windsor. Over the past 10 years, his lab has received an infusion of $11 million from government and industry – and it looks every bit the model of the public-private partnership. “It’s a university setting, but we focus on solving real-world problems,” says Dr. Zheng, who also served
two terms as Canada Research Chair in Clean Diesel Engine Technology. One of the lab’s ongoing industrial partners, The Ford Motor Company, has been working with Dr. Zheng’s laboratory to help design the versatile engines needed for the international market. “We manufacture our diesel engines so that they’re able to run efficiently with up to 20 percent biofuel,” says Dr. Jimi Tjong, manager and technical leader at Ford. “That way we can sell them in many parts of the world.” Recognizing the importance of this work, BFN began supporting the project in 2012.The project also receives support from the National Science and Engineering Research Council and the Canadian Foundation for Innovation. Dr. Tjong says he applauds a collaboration that sees university researchers, graduate students and industry partners joining forces for a common goal.
Contributing Researchers: Shouvik Dev, Prasad Divekar, Tongyang Gao, Xiaoye Han, Tadanori Yanai, Shui Yu and Ming Zheng.
Showcase Projects
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NOVEL REACTOR CUTS WASTE TO THE BONE Dr. Cedric Briens, Institute for chemicals and fuels from alternative resources (Western University)
C A mechanically fluidized reactor makes the conversion of biomass into energy more efficient
ost-effective conversion processes has been an ongoing research area in recent years in the advanced biofuels sector. Seizing this opportunity, Western University’s Institute for Chemical and Fuels from Alternative Resources (ICFAR) designed and built a reactor that improves on current pyrolysis technology. Their mechanically fluidized reactor (MFR) goes a large step beyond conventional fluidized bed pyrolyzers or auger reactors and offers lower capital and operating costs, due to the unit’s cooling efficiency and gasless technology. The MFR blasts the biomass with “temperatures of about 500°C in the absence of oxygen,” says ICFAR’s director of R&D Cedric Briens. Under these conditions, “The biomass doesn’t actually burn, but ‘cracks’ into different chemicals.” Upon cooling, these chemicals produce hydrocarbon gases, liquid bio-oil, and solid bio-char – all products with strong commercial potential. For example, bio-oil is being investigated as a substitute for petroleum, and the solid bio-char can “condition” soil and thus reduce the use of polluting chemical fertilizer. “Current pyrolysis technology is too complex and expensive to be of practical value to smaller farms or cooperatives,” notes Dr. Franco Berruti, a founding member of ICFAR. “The MFR puts biomass conversion within reach of these smaller operations.” The next milestone is commercialization of the reactor. To this end, the group will spend the next year ramping up the MFR’s capacity from 20-40 kg/h to 200 kg/h. That mission accomplished, they’ll deploy the technology in a regional biorefinery at the Agglomération de La Tuque in Québec.
Contributing Researchers: Franco Berruti, Cedric Briens, Francisco Sanchez Careaga, Charles Greenhalf and Stefano Tacchino.
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Showcase Projects
Super Yeasts Deliver Super Yields Dr. Hung Lee, School of environmental sciences (University of Guelph)
A progressive research team upgrades the age-old tradition of fermentation
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ne of the most fascinating aspects of biofuels research is the constant and creative experimentation involved. It’s a world where standard practices don’t stay standard for very long, especially if there are new efficiencies to be had. Take the common practice of drawing ethanol from sulphite liquor, a waste product from the pulp and paper industry, using plain old baker’s yeast or Saccharomyces cerevisiae. Baker’s yeast can easily convert glucose into alcohol, but it can’t convert the pentose sugar, xylose, leaving a quarter of its alcohol producing potential on the table. But thanks to a team of BFN researchers at the University of Guelph and their novel yeast strain, a new high-efficiency conversion process is delivering incredible results. University of Guelph professor Hung Lee and his team used genetic techniques such as random mutagenesis and genome shuffling in hopes of producing hardier strains. Next, they tested their strains on spent sulfite liquor supplied by several partners, including BP Biofuels, FPInnovations, GreenField Ethanol, Tembec and others. “We found that our genetically modified strains are more efficient in fermenting the sugars in the biomass than the native strains,” says Dr. Lee. “We’ve had very encouraging results in terms of ethanol yield, and some companies have shown strong interest in our inhibitor-tolerant yeast strains,” he says. Building on this success, the team plans to conduct similar genetic refinements on other pentose-fermenting yeasts.
Contributing Researchers: Paramjit Bajwa, Mehdi Dashtban, Nicole Harner, Hung Lee, Terri Richardson, Sukhdeep Sidhu and Xin Wen.
Showcase Projects
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Taking Coal to the Cleaners Dr. Shahab Sokhansanj, Biomass and Bioenergy Research Group (UBC)
A new process for producing bio-coal reduces both carbon emissions and wood waste
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Showcase Projects
oal is responsible for a third of the world’s carbon dioxide emissions but coal is making a comeback with a decidedly cleaner look. Bio-coal, coal’s close cousin, holds great promise as an eco-friendly replacement for a variety of industry and home heating purposes. To prove the point, researchers at the University of British Columbia (UBC) have teamed up with a Vancouver-based Global Bio-Coal Energy (GBCE). The result is a new process for producing high-quality bio-coal from wastes and residues from sawmills and forest harvesting operations. The UBC research team, known as BBRG or the Biomass and Bioenergy Research Group, has developed a torrefaction process where the biomass is subjected to conditions of extreme heat and low oxygen. The process conserves more than 85 percent of the dry weight
of the original biomass, while enriching most of the carbon and boosting its energy value. What does this all mean? A bio-coal product with energy properties similar to those of traditional coal, but with one big difference: It’s carbon neutral. “The product is odour-free, moisture-proof, highly hydrophobic, contains very few undesirable pollutants and releases dramatically lower emissions during storage,” says Professor Shahab Sokhansanj, the BBRG’s lead researcher. BBRG engineers have also shown their process to cut energy costs by 20 percent compared with conventional bio-coal production methods. GBCE, together with major investors, is setting up its first commercial plant on Watson Island, British Columbia. Set to go into full production in early 2015, the facility expects to generate 200,000 tonnes of bio-coal per year for markets in North America, Europe and Asia. Looking forward, the team will continue to improve the quality of the biocoal product to make it suitable for a range of applications including in the steel industry.
Contributing Researchers: Tony Bi, Bahman Ghiasi, Chang Soo Kim, Linoj Kumar, Jim Lim, Staffan Melin, Shahab Sokhansanj, Anthony Turhollow and Fahimeh Yazdanpanah.
Showcase Projects
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he aviation sector is increasing its interest in and commitments to using biofuels for air travel. Reducing the environmental impact of fuel consumption, improving fuel supply security and reducing fuel price volatility are some of the major motivators behind these initiatives. Transport Canada and several other Canadian companies are pushing full speed ahead with the goal of establishing a sustainable biojet fuel supply chain as a part of the Clean Transportation Initiative. Since 2008, a large number of biofuel powered test flights have been conducted, but many complex hurdles remain. From finding adequate sources of feedstock to the complex conversion and distribution obstacles throughout the supply chain, the industry is faced with a titanic challenge. To address this challenge, a project team was created, including BFN, SkyNRG, Novo Energy and Waterfall Group to undertake this project under Transport Canada’s Clean Transportation Initiative. External advisors to the project include Air Canada, AirTrav, the International Air Transport Association and Pierre Poitras et Associés. Their deep domain expertise and understanding of the technical, environmental and commercial considerations of aviation biofuels will bring unique insights and solutions. While building on existing research, the team is assessing the feasibility, cost and environmental impact of establishing biojet fuel supply chains at key locations across the country. The study now underway is designed to find practical and implementable solutions to reduce emissions from the aviation sector. The results will present real, practical and sustainable solutions for all aviation fuel users, and will help the Canadian industry take concrete steps towards the introduction of a biojet fuel supply chain.
Participating Organizations: Air Canada, BioFuelNet Canada, Novo Energy, IATA, Pierre Poitras et Associés, SkyNRG, Transport Canada, AirTrav and the Waterfall Group.
THE CLEAN TRANSPORTATION INITIATIVE implementing a biojet fuel supply chain
AVIATION IS EXPECTED TO BE ONE OF THE FASTEST GROWING TRANSPORTATION SECTORS Global jet fuel emissions are expected to increase
3.0% every year
4.8%
forecasted passenger growth per year until
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SHOWCASE PROJECTS
2036
GOVERNMENT INVOLVeMENT BFN has been bestowed with a prominent position and mandate within Canada’s biofuels development strategy. Just 2 years on and we can already see an impact on all levels of government that relate to biofuels. Through our government liaison, we are actively involved with government policy, providing important data and evidence to support policy decisions.
To ensure visibility and to help drive consensus and alignment, BFN’s government liaison attended over 45 bilateral meetings this year alone. Additionally, a strategy meeting was held in Ottawa in March 2014 involving Transport Canada, Environment Canada and the National Research Council of Canada. Many of BFN’s researchers are collaborating with federal, provincial and foreign government agencies on advanced biofuels projects. Examples include ongoing collaboration with Agriculture and Agri-
policy brief to the Quebec Government
BFN came together and spoke as a unified voice to help the Quebec government determine its biofuels development priorities. BFN’s policy brief was presented to the Quebec government during the public consultation on energy issues on October 8th, 2013. A set of recommendations was presented to the government, many of which were reflected in the final recommendations of the commission. They supported continued research, development and commercialization efforts of new biofuels technologies. The recommendations also included increased consideration of residual agricultural, forestry and municipal biomass for biofuels production. It was also agreed that Quebec should progressively develop the biofuels industry by creating biofuel blending mandates into petroleum fuels, while respecting sustainability standards.
Let’s talk energy week
BFN was among the collaborators of Let’s talk energy week (February 21st-28th), the first awareness week of its kind in Canada. In support of the effort and to raise visibility nationally, BFN secured the display of biofuel samples at 7 Canada Science & Technology museums across Canada through contacts at National Resources Canada. The displays provided museum staff great visual aids, which opened discussions with museum visitors about the challenges and opportunities associated with biofuels. BFN will be continuing its outreach efforts to bring advanced biofuels to the general public.
Food Canada, the Canadian Forest Service, Transport Canada, Canada Science and Technology Museums Corporation and Natural Resources Canada. As a Canadian not-for-profit, BFN is proud of the commitments and the support that Ottawa has provided in the drive for advanced biofuels. We’re honored to have to have a seat at the table and to continue to play a powerful and persuasive role in igniting and nurturing the evolution of Canada‘s bioeconomy.
NSERC Science Kiosk on Parliament Hill
Members of BFN met with senators, parliamentarians and other prominent biofuel researchers at NSERC’s Science Kiosk event on Parliament Hill in Ottawa in March 2014. This event provided an exciting opportunity to discuss advanced biofuels and renewable energy, share scientific information with key decision makers and drive home the important impacts and benefits that energy research projects hold for Canadians.
NUMBER OF PROJECTS WITH GOVERNMENT PARTNERSHIPS 14 projects
Federal
22 projects
Provincial
5 Projects
International
GOVERNMENT INVOLVEMENT
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BUSINESS DEVELOPMENT A sustainable bioeconomy requires the alignment of innovation objectives among the academic, industry, investment and governmental communities. Buy-in from each of these stakeholder groups is essential to building a sustainable biofuels industry. BFN has developed a visionary approach for the accelerated commercialization of advanced biofuels. It sees all the key stakeholder groups as “clients”. By simulta-
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PARTNER ORGANIZATIONS
57
INDUSTRIAL PARTNERS
contributed to research since 2012
$4.3M 1.3
24
RS
DOLLA
$6M
2013-2014 FISCAL YEAR PARTNER SUPPORT TOTAL
LEVERAGED for every NCE dollar invested
BUSINESS DEVELOPMENT
neously taking into consideration the needs of these groups, BFN ensures that its research dollars are effectively channeled towards goals that will lead to compelling and highly sought-after winning solutions that will address their collective needs. BFN manages this approach by constantly monitoring the movements within these stakeholder communities.
ACADEMIC FOCUS
Whereas BFN is already maintaining relationships with its researchers across the network, it also is nurturing a discourse with those university offices involved in technology transfer and commercialization. BFN routinely updates these offices about BFN BD activities. Officers are solicited for their feedback whenever BFN embarks on a new initiative.
INDUSTRY FOCUS
A key focus of BFN’s year round industry outreach is maintaining and updating an extensive database of the organizations found along the Canadian biofuel–value chain. Companies are contacted directly; BFN and its services are then introduced to upper management. Companies are encouraged to visit the website and to call BFN whenever they have questions. A description of partnership services is also available on the BFN website. Companies are also informed of potential businessto-business (B2B) opportunities. The objective is to become a valued ally/resource for the client. Potential clients are asked to complete surveys detailing their research needs. These surveys are then directed to the appropriate subject matter experts within the network.
INVESTMENT APPROACH
Given the central role played by the investment community in driving innovation, BFN is also cultivating closer ties with the investment community. It has set up a Canada-wide, BFNfriendly investment network and taken the initiative to track investments made in North America. Several investor organizations have already joined (See the Investment section on the website.) These efforts will permit BFN to understand what parameters drive and influence their financing decisions. Startups, industry and entrepreneurs are encouraged to seek their counsel and to pitch their stories. In return, these organizations have agreed to speak to network researchers and HQP about entrepreneurism, and the role of venture capital and equity markets in financing. Such information exchanges can only generate goodwill.
Top: SBS attendees (Montreal Sheraton Hotel). Bottom left: Dr. Nicolas Abatzoglou (Université de Sherbrooke) presenting to stakeholders. Bottom right: George Mahmourides (BioFuelNet Canada).
STRATEGIC BUSINESS SUMMIT
BFN’s first SBS was held in Montreal last December alongside the AGM for Canadian Renewable Fuels Association’s (CRFA). This day-long summit brought together approximately 50 representatives from the biofuel stakeholder communities. The objective was to uncover the sustainability challenges faced by industry and to share strategies needed for a vibrant bioeconomy. The SBS provided a new vehicle to engage its stakeholders. The format used was modeled on a focus-group approach. A focus group was a very natural and comfortable method of engaging exchange among this group of strangers. It engendered an accepting and safe environment that puts participants at
ease allowing them to thoughtfully answer questions while encouraging lively conversation. The SBS was a most successful milestone for BFN. This summit transformed the way BFN saw all its stakeholders and how these stakeholders, in turn, perceived BFN. Aside from the networking opportunities and introductions made, BFN can now see the concrete ways how it can involve this community to forge competitive advantage for Canada. The findings of the first SBS helped identify the priorities for a restructuring of BFN’s research programs for 2015.
BUSINESS DEVELOPMENT
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HQP EXCHANGES
Graduate students must often find ways to learn new skills and techniques that may not be available at their university or even in the country. We offer HQP the opportunity to travel to other labs, within Canada or abroad, to learn new skills and become more competitive in the biofuels research community. (4 sample exchanges displayed)
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SEATTLE
HALIFAX
BELFAST
HELSINKI
United States
Nova Scotia
Ireland
Finland
McGill University PhD candidate, Simerjeet Kaur, visited Washington State University to learn modern tools and techniques for cellulosic cell wall analysis in cereals and grasses. She also had the opportunity to develop expertise for functional analysis of cell wall synthesis genes.
Cheng Guo is Master’s student in chemical engineering at Western University who undertook an exchange at Dalhousie University in Halifax in order to evaluate the feasibility of bio-diesel production from the energy crop, camelina. A second objective for the exchange was knowledge transfer between the laboratories.
Valerie Orr, PhD candidate in Biochemical and Biomaterials Engineering at the University of Western Ontario, visited Queen’s University Ionic Liquid Laboratories in Belfast, Northern Ireland. The purpose of this exchange was to screen ionic liquids for their ability to partition lipids from residual microalgae biomass.
Tatiana Rafione, PhD candidate in chemical engineering at Polytechnique Montréal, spent two months at Aalto University in Finland working on the concept of Green Integrated Forest Biorefinery (GIFBR). Her main focus was learning about process integration and evaluation of energy efficiency of a GIFBR for furfural production.
TRAINING AND EDUCATION
TRAINING AND EDUCATION Essential to the mission of bringing a thriving bioeconomy to Canada is the need for world-class workforce of Highly Qualified Personnel (HQP). Be they graduate students or post-doctoral fellows working on various aspects of advanced biofuels research, they are the future workforce of the emerging Canadian bioeconomy and require a broad set of skills in order to build their ca-
reers in such a multidisciplinary sector. Under the umbrella of BFN, they are producing original research, receiving mentoring, training and field practice to gain their stripes, to prepare for their future careers in the bioeconomy. HQP have various academic backgrounds but their creativity, insightfulness and openness to multidisciplinary study are the hallmarks of their work. BFN provides a unique opportunity to complement the scientific training and research HQP receive in university. En-
Domestic travel awards international travel awards
suring accessibility, our programs include industrial internships, funded travel to conferences, a student exchange program, an advanced biofuels course, workshops, webinars and social media engagement. A minimum of 60% of BFN grant funds go to HQP stipends. This ensures reasonable salaries and helps to attract high quality candidates, allowing Canada to keep its competitive edge.
139 students 14 students
HQP TRAVEL AWARDS
Presenting research during conferences, participating in panel discussions, making new contacts and networking with the biofuel community at large are experiences that positively contribute to career development. All HQP can apply for travel grants and request to have their travel expenses reimbursed when attending biofuel-related conferences.
HQP Workshops
BFN ensures that HQP benefit from quality workshops when it comes to understanding the biofuels sector and having the right tools to work in industry or start their own business. Inperson training for network HQP provides not only the skills they will need for a successful career in the biofuels industry, but also great networking and discussion opportunities.
WEBINARS
SCAN TO VIEW Optimizing the value creation network of the woody biomass-based industry (youtube webinar)
Free webinars on all topics biofuels-related are offered to any that have internet access. These lectures feature international and Canadian thought leaders that explore a wide spectrum of biofuel topics. The webinar format is simple and digestible, intended to inform scientists and non-scientists alike.
TRAINING AND EDUCATION
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SCAN TO VIEW COURSE WEBPAGE
ADVANCED BIOFUELS COURSE
We believe that biofuels research should be integrative. A thorough understanding of the diverse aspects of the biofuels sector is essential to research remaining relevant and ultimately having an impact. We developed our online Advanced Biofuels Course to provide our HQP with an overview of the complex advanced biofuels sector. The course covers all the major aspects of the biofuels value chain, feedstock supply, conversion technologies, end uses of fuels, as well as sustainability, government policy and aspects of intellectual property and commercialization. It consists of 14 one-hour long lectures given by 12 subject matter experts. Providing this foundation to our HQP is a key element of building consensus on how to achieve our goal of a thriving advanced biofuel industry in Canada.
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TRAINING AND EDUCATION
The course was launched in January 2014 with enrollment at full capacity, and the inaugural semester has now been successfully completed. Participants included BFN graduate students and postdocs from across Canada, but also industry and government representatives from the biofuels sector.
Leadership training
Twelve of our senior HQP receive special leadership and management training through mentoring by BFN’s platform and this specialized training provides valuable exposure and experience in network management and complements their scientific education, providing unique skills for career development.
NETWORKING One of the most important things we can do as a network is networking. Effective networking fosters increased engagement and coordinated actions from the Canadian biofuels research community, industry and government. Below are some examples of how BFN is connecting people from diverse areas and nurturing the relationships we’ve established.
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ATTENDEES
PANELISTS
MEMBER PORTAL
Strong networking and communications is a top priority of BFN, and that’s why we’ve developed a private member portal to connect the whole network. The portal allows BFN to interact, share and access information easily and securely. The portal also generates a myriad of important statistics that helps us accurately track our progress.
ADVANCED BIOFUELS SYMPOSIUM
Held in June 2013, BFN’s first Annual General Meeting (AGM) brought together over 200 biofuels experts from all over Canada, plus many international guests. The AGM provided an opportunity for the top biofuels researchers in Canada and key stakeholder communities to meet in person and discuss issues of central importance to the Canadian biofuels sector. In 2014, we expanded the scope of the AGM to include a wider audience from academia, industry and government and re-branded it as the Advanced Biofuels Symposium (ABS). The ABS was held from May 27-29, 2014 in Ottawa. Multi-disciplinary experts in the energy field discussed key areas of advanced biofuels research, such as sustainability, commercialization and policy development. The theme of the Advanced Biofuels Symposium was Bridging the gaps between research, industry and government to accelerate the development of the Canadian biofuels sector.
Theme and platform workshops
BFN themes and platforms hold their own workshops to establish closer interactions, increase collaborative work and plan future steps. For example, in February, the BFN West Platform held a workshop at the University of Alberta and BFN’s forestry cluster held a workshop in Montreal. BFN’s East Platform also hosted a student webinar competition in November 2013. HQP were awarded prizes for the best presentations.
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Graduate student HQP SPEAKERS
85
HQP WORKSHOp PARTICIPANTS
100
SCIENTIFIC POSTERS
40%
SESSIONS INVOLVED GOVERNMENT
60%
SESSIONS INCLUDED INDUSTRY
Collaborative events with Biotech Annecto
BFN co-hosted two networking events with Biotech Annecto, a social networking organization specializing in the biotech sector. Both events were held in a trendy Montreal lounge; the first event focused on biofuels development in Canada, the second highlighted the role of biojet fuel in greening the aviation sector.
NETWORKING
29
MEDIA and communications
BFN maintains an active, organic social media presence. Facebook, Twitter, LinkedIn and YouTube form a modern, far-reaching voice for sharing research stories, promoting events as well as raising awareness about notable initiatives in the biofuels sector. We routinely publish event updates, photos, blog posts, newsletters, research breakthroughs, important news and key biofuels stories.
WEBSITE
NEWSLETTER
Our website continues to be expanded to bring the biofuels community an even more informative and streamlined experience. Website page views (2013-2014): 60,000 (10x increase from the previous year) Visit us at biofuelnet.ca
We recently released a compilation of success stories, entitled Fueling Success. BFN researchers highlighted breakthroughs in their areas of expertise using non-scientific language. The stories were published in a magazine format and first released during the Advanced Biofuels Symposium. We will regularly interview our researchers to release subsequent volumes of Fueling Success, to engage and inspire the BFN community as well as the general public. Read them all at issuu.com/biofuelnet
30
MEDIA AND COMMUNICATIONS
Forming a new, original and engaging voice on advanced biofuels, the Biofueled Blog quickly grew its readership in 2014. HQP regularly publish posts about their research or their experience at biofuels conferences. Other content contributors include international stakeholders and industry partners.
SOCIAL MEDIA
Being a network, BFN regularly communicates important information to its members but also shares compelling content and stories through dynamic media in order to build a community that believes in a more sustainable future. Our multimedia approach helps us accurately target varied audiences.
SUCCESS STORIES
BIOFUELED BLOG
Our monthly e-newsletters are the main vehicle for informing BFN’s community about new calls for applications, upcoming deadlines, events and activities, opportunities for HQP and general news. Current recipients: 630 (4X increase since April 2013)
PUblications
Our media strategy involves communicating breakthroughs, ideas and events in the news, as well as in more specialized biofuels related publications. In May 2013, an article about BFN’s collaboration with Air Canada and Airbus was published in the Toronto Star. We’ve also published several op-eds in the Hill Times, Canada’s politics and government newsweekly, and collaborated with Canadian Biomass Magazine on several articles.
This conference gave me the opportunity to see
what others are doing in their respective fields and bring those tools, techniques and ideologies back to solving issues related to biofuels. The intricacies of modeling and network analysis presented at this conference were truly astounding, and I am looking forward to applying the knowledge from this conference to my work in metabolic engineering.
Naveen Venayak, Master’s Student (University of Toronto) Blog Article: BioFuelNet goes to Copenhagen to get involved with systems biology
31
32
$25M
FEDERAL FUNDING BioFuelNet Canada has been granted $25 million from the federal Networks of Centres of Excellence (NCE) program to lead a large-scale biofuels research network involving partners from academia, industry, government and not-for-profit organizations.
33
PHASE II
The network Evolves BFN has been funded by the Networks of Centres of Excellence for a total of 5 years, and we’ve passed the halfway mark. This means that our first cycle of funding, or Phase I, is soon coming to an end on March 31st, 2015. We have been consulting with all of our stakeholders on how BFN’s research structure could be improved for Phase II, which will cover the period
from April 1st, 2015 to March 31st, 2017.
34
PHASE II
Objectives for Phase II: Build on Phase I progress towards achieving BFN’s vision and mission. Become more focussed and reduce the number of projects. Projects should focus on small number of priority areas. Be more specific in addressing barriers, expanding beyond technical research if necessary. Emphasize research areas of particular importance to Canada. What are Canada’s natural advantages, and how can BFN mobilize these? Ensure BFN’s program is informed by and aligned with the broad priorities of government and industry.
SCAN TO VIEW THE BIOFUELNET PHASE II WEBPAGE AND LEARN MORE
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ANNEX A BOARD & COMMITTEES Board of Directors Gerald Butts Formerly CEO (WWF Canada) Carl Carson Director, Research & Technology (Rolls Royce) Esteban Chornet Chief Technology Officer (Enerkem) Goretty Dias Assistant Professor (Waterloo University) Anne Drost (Vice Chair) Partner (Fasken Martineau) Paul Feher CEO & President (Fedinco) Rose Goldstein VP Research & International Relations (McGill University)
Research Management Comittee
Knowledge & Technology Exploitation Committee
David Bressler Associate Professor (University of Alberta)
Nicolas Abatzoglou Professor (Université de Sherbrooke)
Pascal Brun President (Enel Green Power Canada) Shi-You Ding Senior Scientist (NREL) Emily Heaton Assistant Professor (Iowa State University) Michel Lachance Director (Industrial Bioproducts CQVB) Henry Ling Director of Research (Mitacs) Warren Mabee Assistant Professor (Queen‘s University)
Dave Harwood Senior Research Manager (Pioneer)
Jorin Mamen Executive Director (BioFuelNet Canada)
Katie Lafferty Executive Director (CPSR)
Pierre Paffenhoff Manager, Virtual Incubator TM & Funding Applications (SDTC)
Renée Leduc Program Administrator (NCE) Jorin Mamen Executive Director (BioFuelNet Canada) Doug Singbeil Principal Scientist (FPInnovations) Donald Smith CEO & Scientific Director (BioFuelNet Canada) Thierry Vandal (Chair) CEO & President (Hydro Quebec) Robert Zittrer Partner (RSM Richter Chamberland)
Ziyad Rahme SVP & General Manager (Iogen)
David Boulard Executive Vice President (Ensyn Technologies inc) Jean-Nicolas Delage Patent & Trademark Agent (Fasken Martineau) Richard Gold (Chair) Professor & Associate Member (McGill University) Marie-Helene Labrie VP Government Affairs & Communications (Enerkem) George Mahmourides Manager, Business Development & Knowledge Transfer (BioFuelNet Canada) Jorin Mamen Executive Director (BioFuelNet Canada) Astrid Reimann Commercialization Officer (McGill University)
Donald Smith (Chair) CEO & Scientific Director (BioFuelNet Canada)
HQP Committee
Murray Thomson Associate Professor (University of Toronto)
Olumoye Ajao HQP Representative (Polytechnique de Montréal)
Kevin Vessey Professor (Saint Mary‘s University)
Mark Lefsrud Associate Member (McGill University) Jesse Vincent-Herscovici (Chair) Director, Strategic Accounts & Business Development (Mitacs) Naveen Venayak HQP Representative (University of Toronto) Annie Webb Manager, Communications (BioFuelNet Canada) Xiaomin Zhou Manager, Financial Operations (BioFuelNet Canada)
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ANNEX A
ANNEX A BOARD & COMMITTEES Executive Committee Anne Drost (Vice Chair) Partner (Fasken-Martineau) Rose Goldstein VP Research & International Relations (McGill University) Jorin Mamen Executive Director (BioFuelNet Canada) Donald Smith CEO & Scientific Director (BioFuelNet Canada) Thierry Vandal (Chair) CEO & President (Hydro Quebec) Robert Zittrer Partner (RSM Richter Chamberland)
Environmental Review Committee
Human Resource Governance Committee
Platform & Theme Leader Committee
Rose Goldstein (Chair) VP Research & International Relations (McGill University)
Nicolas Abatzoglou Professor (Univeristé de Sherbrooke)
Jorin Mamen Executive Director (BioFuelNet Canada) Rachel Schafts Human Resource Advisor (McGill University) Donald Smith CEO & Scientific Director (BioFuelNet Canada ) Xiaomin Zhou Manager, Financial Operations (BioFuelNet Canada)
Finance & Audit Committee
Jeffrey Bergthorson Professor (McGill University) Franco Berruti Professor (University of Western Ontario) David Bressler Professor (University of Alberta) Jean Michel Lavoie Professor (Université de Sherbrooke) David Levin Associate Professor (University of Manitoba) Jack Saddler Professor (University of British Columbia)
Paul Feher CEO & President (Fedinco)
Donald Smith (Chair) CEO & Scientific Director (BioFuelNet Canada)
Katie Lafferty Executive Director (CPSR)
Murray Thomson Professor (University of Toronto)
Jorin Mamen Executive Director (BioFuelNet Canada)
Jorin Mamen Executive Director (BioFuelNet Canada)
Kevin Vessey Professor (Saint Mary‘s University)
Donald Smith CEO & Scientific Director (BioFuelNet Canada)
Doug Singbeil Principal Scientist (FPInnovations)
Joann Whalen Professor (McGill University)
Anne Drost (Chair) Partner (Fasken-Martineau) Terry McIntyre Officer, Government Liaison & Quality Assurance (BioFuelNet Canada)
Xiaomin Zhou Manager, Financial Operations (BioFuelNet Canada)
Robert Zittrer (Chair) Partner (RSM Richter Chamberland) Xiaomin Zhou Manager, Financial Operations (BioFuelNet Canada)
ANNEX A
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ANNEX B NETWORK COMMUNITY Universities
Collaborators
Concordia University
Aalto University
CEGEP de Rimouski (SEREX)
Abritech
Dalhousie University
Acadian Seaplants Ltd
École de technologie supérieure
Agence de l‘efficacite énergétique (Gouvernement du Québec)
École polytechnique de Montréal Lakehead University McGill University Memorial University Queen‘s University Ryerson University Saint Mary‘s University Université de Montréal Université de Sherbrooke Université du Québec à Trois-Rivières Université Laval University of Alberta University of British Columbia University of Calgary University of Guelph University of Manitoba University of Ontario (UOIT) University of Ottawa University of Saskatchewan University of Toronto University of Waterloo University of Western Ontario University of Windsor
Agriculture & Agri-Food Canada (AAFC) ALGA-Labs Inc. Altantec Bioenergy Corporation Amico Inc. Aurel Systems AV Group Biovalco Innovative Products Inc. Buoyant Aircraft Systems International Canadian Forest Service CanmetENERGY Cascades Canada ULC CEATI International Centre Collégial de Transfer Technologique de Trois-Rivières (QC)/CIPC Centre Collégial de Transfert Technologique de Montreal (QC)/CEPROCQ Centre Collégial de Transfert Technologique de Shawinigan (QC)/CNETE Centre de recherche sur les biotechnologies marines Centre for Forest Science & Innovation Provincial Department of Natural Resources (NL) Cestoil CFSI/Natural Resources CNH Saskatoon Corner Brook Pulp and Paper
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ANNEX B
CRIBIQ/Consortium de recherche et innovations en bioprocédés industriels au Québec Enel Green Power Enerkem Inc. Ensyn EnVertis Inc. Evergreen Biofuels Fasken Martineau Fedinco Ford Canada FPInnovations GreenField Ethanol Inc. Highbury Biofuel Technologies, Inc. Hydro Quebec Imperial Oil Innofibre Inocucor INPT Toulouse INSA Tunis Institut de recherche en biologie végétale (IRBV)/Montreal Botanical Garden International Institute for Sustainable Development (IISD) Iogen Iowa State University KMX Kruger Le Fort Serre Lignoworks MacDon Industries Manitoba Centres of Excellence Fund McCain Foods
CQVB Network (Conseil Quebecois de la Valorisation des Biotechnologies)
MDEIE/Ministère du Développement économique, de l’Innovation et de l’Exportation (MDEIE)
CRB Innovations
Merck-Frost
ANNEX B NETWORK COMMUNITY MITACS
Thermeal
Mount Sinai Hospital-Toronto
TimberWest
MRNF/Ministère des ressources naturelles et de la faune
Trojan Technologies
Myera Fuels National Instruments National Research Council of Canada Natural Resources Canada Nethasol Nexterra NREL Ontario Graduate Scholarship Program
TU Berlin TU Chalmers U Canatria University of Ghent Washington State University World Trade Center Winnipeg WWF Canada York University ZAE Berlin
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) Ontario Ministry of Natural Resources Ontario Research Council/Ontario Ministry of Research & Innovation Pinnacle Energy Pioneer/Dupont Queen‘s University Renewable Energy Group Rio Tinto Alcan Roll Royce Canada RSM Richter Chamberland S2E Samuel Lunenfeld Research Institute Saskatchewan Innovation Council Saskatchewan Canola Development Commission Saskatchewan Ministry of Food and Agriculture Sexton Sawmill Co Statistics Canada Stem Cell Network Stove Builder International Inc. Syngenta Canada Inc.
ANNEX B
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ANNEX C NETWORK RESEARCHERS Researchers Nicolas Abatzoglou Université de Sherbrooke Belay Ayele University of Manitoba Kristin Baetz University of Ottawa Simon Barnabé University of Quebec at Trois-Rivières Jeffrey Bergthorson McGill University Franco Berruti University of Western Ontario (ICFAR) Madjid Birouk University of Manitoba David Bressler University of Alberta Cedric Briens University of Western Ontario (ICFAR) John Caspersen University of Toronto Stefan Cenkowski University of Manitoba Paul Charpentier University of Western Ontario (ICFAR) Nazim Cicek University of Manitoba Ajay Dalai University of Saskatchewan Goretty Dias University of Waterloo Zhongmin Dong Saint Mary‘s University
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Omer Gulder University of Toronto Institute for Aerospace Studies Jean Hamelin Université du Québec à Trois-Rivières Kelly Hawboldt Memorial University Quan He Dalhousie University Robert Helleur Memorial University Michel Huneault Université de Sherbrooke Yannick Huot Université de Sherbrooke Leivong Jiang University of Calgary (Gas Turbine Laboratory, Aerospace, National Research Council) Mario Jolicoeur École Polytechnique de Montréal Serge Kaliaguine Université Laval Andrea Kirkwood University of Ontario Institute of Technology Charles Robert Koch University of Alberta Priti Krishna University of Western Ontario Amit Kumar University of Alberta
Robert Legros École Polytechnique de Montréal David Levin University of Manitoba Warren Mabee Queen‘s University Heather MacLean University of Toronto Radhakrishnan Mahadevan University of Toronto Shawn Mansfield University of British Columbia Mariya Marinova École Polytechnique de Montréal Vincent Martin Concordia University George Nakhla University of Western Ontario Jean Paris École Polytechnique de Montréal Michel Perrier École Polytechnique de Montréal Fred Pries University of Guelph Wensheng Qin Lakehead University Lars Rehmann University of Western Ontario Steven Rothstein University of Guelph Jack Saddler University of British Columbia
Louis Fradette École Polytechnique de Montréal
Michel Labrecque Institut de recherche en biologie végétale/Université de Montréal
Andrew Gordon University of Guelph
Jean-Michel Lavoie Université de Sherbrooke
Sandra Schillo University of Ottawa
John Grace University of British Columbia
Luc Lebel Université Laval
Marcel Schlaf University of Guelph
Clinton Groth University of Toronto Institute for Aerospace Studies
Hung Lee University of Guelph
Patrice Seers École de technologie supérieure
Mark Lefsrud McGill University
Jaswinder Singh McGill University
ANNEX C
Oumarou Savadogo École Polytechnique de Montréal
ANNEX C NETWORK RESEARCHERS Non-Network Collaborators C.T. Smith University of Toronto
Zaid Abou Mamdouh NRC
Staffan Melin Wood Pellet Association of Canada
Donald Smith McGill University
Vaughan Basset Pinnacle Renewable Energy Corp
Cliff Mui Nexterra
Shahab Sokhansanj University of British Columbia
Andréanne Bastien CRBM
Nathaniel Newlands Agriculture and Agri-Food Canada
John Sorensen University of Manitoba
Nic Bate Syngenta
Jeff Norrie Acadian Seaplants Inc
Richard Sparling University of Manitoba
Maggie Bywater-Ekegärd Inocucor
Stephen O‘Leary NRC Halifax
Adam Steinberg University of Toronto Institute for Aerospace Studies
Irena Chandrawana Rio Tinto ALCAN
Yousef Papadopoulos AAFC
Ron Coles Atlantec Bioenergy Corp.
David Paré Canadian Forest Service
Denis Cormier FP Innovations
Mario Parenteau Innofibre
Jake DeBruyn Ontario Ministry of Agriculture and Food
David Sanscartier SRC
Kanwarpal Dhugga DuPont-Pioneer, USA
Domenico Santoro Trojan Technologies
Jeff Fera Canadian Forest Service
Bijan Shams Cogent Industries
Peter Fransham Abritech
Raju Soolanayakanahally AAFC
Roger Gaudreault Cascades Canada NORAMPAC
Evelyne Thiffault Canadian Forest Service
Kulvinder Gill Washington State University
Jimi Tjong Ford Canada
Chi-Yip Ho Mount Sinai Hospital
Sundaramurthy Vedachelam Saskatchewan Research Center
Trevor Jones Ontario Ministry of Natural Resources
Guy Viel CRBM
Paul Stuart École Polytechnique de Montréal David Stuart University of Alberta Lope Tabil University of Saskatchewan Naresh V. Thevathasan University of Guelph Paul Thomassin McGill University Murray Thomson University of Toronto Ashraf Tubeileh University of Guelph Henry David Venema University of Manitoba Kevin Vessey Saint Mary‘s University John Wen University of Waterloo Joann Whalen McGill University
Mark Jordan Agriculture and Agri-Food Canada (Cereal Research Center)
Malcolm Whiteway Concordia University
Rick LeHoux Green Field Ethanol
Chunbao (Charles) Xu University of Western Ontario (ICFAR)
Bao-Luo Ma Agriculture and Agri-Food Canada Patrick McGinn NRC Halifax
ANNEX C
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ANNEX D FINANCIAL STATEMENTS
Financial statements of BioFuelNet Canada Network Deloitte LLP, March 31, 2014.
Independent auditor’s report ............................................................................................................................ 1–2 Statement of operations ....................................................................................................................................... 3 Statement of changes in net assets ..................................................................................................................... 4 Statement of financial position ............................................................................................................................. 5 Statement of cash flows ....................................................................................................................................... 6 Notes to the financial statements ................................................................................................................... 7–11
Deloitte LLP 1 Place Ville Marie Suite 3000 Montreal QC H3B 4T9 Canada Tel: 514-393-7115 Fax: 514-390-4116 www.deloitte.ca
Independent auditor’s report To the Members of BioFuelNet Canada Network We have audited the accompanying financial statements of BioFuelNet Canada Network, which comprise the statement of financial position as at March 31, 2014, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Page 1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of BioFuelNet Canada Network as at March 31, 2014, and the results of its operations and its cash flows for the year then ended, in accordance with Canadian accounting standards for not-for-profit organizations.
September 29, 2014 ____________________ 1
CPA auditor, CA, public accountancy permit No. A133206
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BioFuelNet Canada Network Statement of operations Year ended March 31, 2014
Notes
Revenue Network of Centres of Excellence grant McGill contributions Services in-kind Research contract Annual general meeting Other revenues
6 6 and 7 7 6
Expenses Mission Fulfillment Research programs HQP training programs Communications and outreach Business development Annual general meeting Research contract
Governance and administration General and administration Service in-kind Professional and consulting fees Board and committees Amortization
7
(Deficiency) excess of revenue over expenses
2014 $
2013 $
4,385,428 168,105 54,200 39,474 26,093 3,902 4,677,202
2,165,996 207,660 54,200 — — — 2,427,856
3,346,357 387,859 117,710 127,770 87,178 39,474 4,106,348
1,643,880 162,499 70,720 47,890 — — 1,924,989
438,256 54,200 39,768 30,583 34,287 597,094 4,703,442 (26,240 )
234,063 54,200 33,968 20,246 22,709 365,186 2,290,175 137,681
The accompanying notes are an integral part of these financial statements.
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BioFuelNet Canada Network Statement of changes in net assets Year ended March 31, 2014
Restricted capital assets 2014 $ Balance, beginning of year (Deficiency) excess of revenue over expenses Balance, end of year
The accompanying notes are an integral part of these financial statements.
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137,681 (26,240 ) 111,441
2013 $ — 137,681 137,681
BioFuelNet Canada Network Statement of financial position As at March 31, 2014
Notes
Assets Current assets Cash Account receivable Prepaid expenses
Restricted cash Capital assets
3 4
Liabilities Current liabilities Accounts payable and accrued liabilities Government remittance payable Research grant payable Deferred contributions
6
Commitments
8
Net assets Restricted capital assets
2014 $
2013 $
5,354,561 50,056 7,281 5,411,898
4,997,361 — 3,966 5,001,327
7,148 111,441 5,530,487
7,000 137,681 5,146,008
30,221 9,299 23,223 5,356,303 5,419,046
80,484 — — 4,927,843 5,008,327
111,441 5,530,487
137,681 5,146,008
The accompanying notes are an integral part of these financial statements.
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BioFuelNet Canada Network Statement of cash flows Year ended March 31, 2014
2014 $ Operating activities (Deficiency) excess of revenue over expenses Adjustment for Amortization
Changes in non-cash-working capital items Account receivable Prepaid expenses Accounts payable and accrued liabilities Government remittance payable Research grant payable Deferred contributions
Investing activities Purchase of investment in restricted cash Purchase of capital assets
Increase in cash Cash, beginning of year Cash, end of year The accompanying notes are an integral part of these financial statements.
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2013 $
(26,240 )
137,681
34,287 8,047
22,709 160,390
(50,056 ) (3,315 ) (50,263 ) 9,299 23,223 428,460 365,395
— (3,966) 80,484 — — 1,855,843 2,092,751
(148 ) (8,047 ) (8,195 )
(7,000) (160,390) (167,390)
357,200 4,997,361 5,354,561
1,925,361 3,072,000 4,997,361
BioFuelNet Canada Network Notes to the financial statements March 31, 2014
1.
Nature of operations The BioFuelNet Canada Network (the “Network”) was established in 2012 as a not-for-profit organization. The Network was established with support by funds from the Network of Centres of Excellence (“NCE”) program, private as well as public sectors. The Network was registered as a not-for-profit corporation in February 23, 2012, with goals to: 1) facilitate rapid deployment of a fully functional biofuel sector, based on biomass that is not otherwise needed in the food chain; 2) remove research and policy obstacles impeding a viable biofuel economy at all levels; and 3) development and commercialization of technologies that may be positioned within the market place. The NCE was created in 1989 as a joint initiative of the Natural Sciences and Engineering Research Council, the Social Sciences and Humanities Research Council, the Canadian Institutes of Health Research and Industry Canada and Health Canada. The program supports large-scale, academically-led research networks that harness the creativity and inventiveness of Canadian health, natural, and social scientists and engineers. The Network has been approved for $24.95 million in funding from 2012-2017.
2.
Accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and reflect the following significant accounting policies. Revenue recognition The Network follows the deferral method of accounting for contributions, which include government grants. Funds are received from the Canadian federal government as well as McGill University (the “University”), the host university. Grants approved, but not received at the end of the accounting period, are accrued. Restricted contributions are recognized as revenue during the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Contributions and services in-kind Many organizations and individuals contribute a significant amount of volunteer effort in each year. The fair value of these services is often difficult to determine. Contributed services are not recognized in the financial statements unless a fair value can be reasonably estimated; such services are used in the normal course of operations and the provider of the services has explicitly defined the value of the services to the Network. The Network is dependent on such contributors to appropriately report the value of all contributions and services in-kind to its administrative centre. Research programs expenses Research programs expenses are recorded as expenses when they become payable.
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2.
Accounting policies (continued) Allocation of expenses The Network allocates salaries and benefits based on an estimate of the percentage of time each person typically spends on each area. The Network has applied this on a consistent basis. Financial instruments Financial assets and financial liabilities are initially recognized at fair value when the Network becomes a party to the contractual provisions of the financial instrument. Subsequently, all financial instruments are measured at amortized cost. Transaction costs are added to the carrying value of the asset or netted against the carrying value of the liability and are then recognized over the expected life of the instrument using the straight-line method. Any premium or discount related to an instrument measured at amortized cost is amortized over the expected life of the item using the straight-line method and recognized in the statements of operations as income or expense. The Network recognizes in the statements of operations an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written-down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss shall be reversed in the statements of operations in the period the reversal occurs. Capital assets Purchased capital assets are recorded at cost. Donated capital assets are recorded at their estimated fair value at the contribution date, and recognized in the statements of operations based on their related amortization policy. Capital assets are amortized over their respective useful lives using the following rates: Leasehold improvements Furniture and fixtures Computer equipment Telephone equipment Computer software Audiovisual equipment
Straight line Diminishing balance Diminishing balance Diminishing balance Diminishing balance Diminishing balance
5 years 20% 33% 33% 100% 33%
Use of estimates The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the statement of financial position date and the reported amounts of revenues and expenses during the year. Items requiring the use of significant estimates include useful lives of capital assets, accrued liabilities and allocation of salaries and benefits expenses. Actual results could differ from those estimates.
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BioFuelNet Canada Network Notes to the financial statements March 31, 2014
3.
Restricted cash Restricted cash is invested in a non-redeemable guaranteed investment certificate and is held by the Network’s bank as collateral for their Visa account. The non-redeemable guaranteed investment certificate bears interest at 2% and matures on September 12, 2015.
4.
Capital assets
Leasehold improvements Furniture and fixtures Computer equipment Telephone equipment Computer software Audiovisual equipment
2014
2013
Cost $
Accumulated amortization $
Net book value $
Net book value $
124,887 21,655 13,749 5,889 1,465 791 168,436
37,466 8,106 5,504 3,926 1,465 528 56,995
87,421 13,549 8,245 1,963 — 263 111,441
112,399 15,544 5,285 3,926 — 527 137,681
During the year, capital assets of $8,047 ($160,389 in 2013) were purchased with restricted funds not specifically allocated to capital assets. As such, the full balance was recognized as an increase in revenue and a decrease in deferred contributions.
5.
Allocation of expenses Salaries and benefits have been allocated as follows:
Salaries and benefits HQP training programs Communications and outreach Business development General and administration
2014 $
2013 $
64,962 62,004 81,976 233,427 442,369
29,999 60,810 40,115 170,247 301,171
Highly qualified personnel (“HQP”) trainings are programs to gain professional skills as well as personal management skills.
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6.
Deferred contributions
Balance, beginning of year Contributions received Less: amount recognized as revenue Balance, end of year
2014
2013
Other $
Total $
Total $
—
—
4,927,843
3,072,000
139,075
50,000
28,392
5,021,467
4,229,499
(4,385,428 )
(168,105)
(39,474)
5,253,576
63,809
10,526
Network of Centres of Excellence $
McGill $
Research Contract $
4,835,004
92,839
4,804,000
— 28,392
(4,593,007 ) (2,373,656) 5,356,303
4,927,843
NCE funds are managed in accordance with the funding agreement between the grant agency, the University and the Network.
7.
Related party transactions The Network is related to the University by virtue of the fact that the University is the hosting academic institution under the NCE program. Under the host agreement, the University provides accounting and administrative support services as well as partial office space without charge to the Network. The University also provides contributions for annual office rental as well as the Network office establishment (renovation and furniture purchase). The estimated value of the in-kind contribution received for services in fiscal 2014 was $54,200 (54,200 in 2013). The University also contributed $139,075 ($300,499 in 2013) for the Network related administration and HQP training activities. Whereas both NCE and the University supported the Network, the majority of its funding was received from NCE. The NCE funds were managed via the funding agreement signed between NCE, the University and the Network. The use of funds is restricted only for biofuel research, which will lead to commercialization of technology and social/economic benefit for Canadians. With the exception of the in-kind contributions from the University, which are reported at fair value, the transactions between the Network and the University are incurred in the normal course of activities and are presented at the exchange amount, which is the amount established and agreed to between the parties.
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BioFuelNet Canada Network Notes to the financial statements March 31, 2014
8.
Commitments The Network has committed to funding the following research activities: $ 2015 2016 2017
9.
3,521,088 209,500 112,500
Financial instruments Liquidity risk The Network’s objective is to have sufficient liquidity to meet it liabilities when due. The Network monitors its cash balance and cash flows generated from operations to meet its requirements. As at March 31, 2014, the financial liabilities are the accounts payable and accrued liabilities and the research grant payable.
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BioFuelNet Canada 355 rue Peel, Suite 201 Montreal, QC, Canada, H3C 2G9 T. 514-508-2884 E. info@biofuelnet.ca Visit us: www.biofuelnet.ca ŠBioFuelNet Canada. All rights reserved. Design by Guillaume Champeau Infographic sheets Alessandra Hechanova Ehsan Oveisi, Jean-FranÇois Perreault, Photo credits Martin Schwalbe, Fahimeh Yazdanpanah. Gabrielle Bauer, George Mahmourides, Copywriting Jorin Mamen, Donald Smith, Annie Webb.
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This is a carbon neutral print. Greenhouse gas emissions from the paper lifecycle, the transport, and the printing of this item have been offset through investments in energy efficiency and green technologies.
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Our vision is a Canada with a thriving advanced biofuels industry that is socially, economically and environmentally sustainable.