BOUNTIFUL BIOFUELS

Biofuels:

fueling growth and innovation in canada

In Canada, we are blessed with a rich bounty of natural resources. Most often, we associate this with the abundance of petroleum-based resources which make Canada a world leader in traditional energy and fuel supply. In addition to this however, Canada also has a wealth of biomass and cropland from which energy crops can sprout. And while our domestic biofuels industry has grown into a working success, the simple fact is that to meet our growing energy needs and stresses, we need to do more. As a country, simply recognizing our clean-energy potential is no longer suffi cient. Today, in the face of ever-increasing energy demands and global climate challenges, the need for innovation has never been greater. This is true both in terms of how we make our fuels, as well as capitalizing on the potential of where these fuels can come from; be it our farmer’s fi elds or even our landfi lls.

Domestic renewable fuel production strengthens our economy, protects the air we breathe, and plays a key role in securing and diversifying our energy future. It also speaks directly to the value of continued innovation in Canada, both on the science and technology frontier as well as in modernizing the market options for the products grown on Canadian farms. Already, the Canadian biofuels industry is creating a suite of innovative fuels. This includes traditional corn-based ethanol, biodiesel from canola, spent cooking oils and rendered animal residues. There are also advanced biofuels, notably feedstock agnostic cellulosic ethanol, which can include wood waste, forest biomass and reclaimed municipal solid waste. Right now, in addition to producing traditional biofuels, the industry is also at work improving effi ciencies in the production of fi rst-generation ethanol and biodiesel. This includes developing new processes and value-added co-products to advance Canada’s place in the emerging bio-economy.

When looking at innovation in the energy sector, the renewable fuels sector truly is the place where some of the most exciting work in the world is currently being done. This innovation started with the fi rst-generation technology for domestic production of ethanol and biodiesel. From there, the industry has evolved with the advent of new technologies that promise to extract even more energy potential with a broader range of crops, including the production of biopolymers, nutraceuticals and other advanced food-related sources, industrial plastics and advanced biofuels like cellulosic ethanol.

Refl ecting on the importance of these innovators, the Canadian Renewable Fuels Association (CRFA) created a new committee and classifi cation of membership specifi cally for the next-generation of biofuel producers in Canada. The new committee and its members represent leaders in advanced

Figure 1: On a life cycle basis, and depending on feedstock, biofuels can reduce emissions by as much as 99 per cent when compared to petroleum-based fuels.

Figure 2: Canadian GHG Emissions by Economic Sector

Source: Environment Canada Distribution of Greenhouse Gas Emissions by Economic Sector, Canada, 2010

biofuels with their cutting edge technologies and fi rst-of-a-kind projects.

The inaugural committee members include Enerkem, a Québec-based company developing municipal solid waste-to-biofuels projects in Edmonton, AB and another one in partnership with GreenField Ethanol in Varennes, QC. Also included is Mascoma, a US-based company developing a project in Drayton Valley, AB utilizing its low-cost proprietary Consolidated BioProcessing technology for the conversion of biomass into cellulosic ethanol, xylose, Isopropanol and green electricity.

Advanced biofuel plants, like these innovative pioneers, contribute almost $1.2 billion every year to the domestic economy, and generate almost $240 million a year in federal and provincial tax revenues.

Moreover, in addition to the economic advantages, clean burning biofuels are proven to signifi cantly reduce harmful greenhouse gas (GHG) and other emissions.

Around the world, our fuels and climate are linked together in a way that, left unchanged, will carry high environmental costs that will be paid by generations to come. And while the climate challenges facing our country, governments and consumers are essentially global; this is not to say that our solutions to these problems cannot be local, domestic and even home grown.

Depending on the fuel in question, cleanburning biofuels can reduce GHGs by up to 99 per cent in the process when compared to traditional fossil fuels. The government’s transportation sector strategy for GHG emission reductions, of which biofuels are an integral part, cut carbon emissions by 4.2 megatonnes. This is equal to removing one million cars from the roads. These benefi ts are even greater with next-generation cellulosic ethanol, which requires less energy to produce than traditional gasoline and can reduce GHGs by as much as 60 per cent.

Canada’s transportation sector accounts for about one quarter of overall GHG emissions. For this very reason, deploying alternative fuel technologies to reduce emissions from our transportation fuel presents a practical and essential solution. In fact, advanced biofuels made from non-recyclable and noncompostable municipal solid waste go a step further and carry a dual benefi t - reducing GHG emissions while at the same time diverting waste from landfi lls. Essentially, this solves two signifi cant environmental issues simultaneously. Recognizing the known environmental and economic benefi ts of domestic biofuel production, Canada introduced mandated requirements for renewable fuel inclusion in order to take advantage of our signifi cant biomass availability. Mandated levels of renewable fuel content have succeeded in securing a market for a product which burns cleaner when compared to petroleum-based alternatives. In addition, the federal ecoENERGY for Biofuels program has been highly effective in building-out a domestic industry for ethanol, resulting in the construction of several new facilities, and depending on seasonality, achieved its objective of including fi ve per cent renewable content in all gasoline through domestic production. The government also established a two per cent mandate for renewable content in diesel which continues to be fi lled with a growing percentage of domestic product.

As a direct result of these mandates, Canada’s renewable fuels industry is domestically producing almost 1.8 billion litres of ethanol and, by the end of 2013, is expected to produce over 400 million litres of biodiesel in Canada. These renewable fuels are already being easily incorporated into the current transportation fuel infrastructure. The net result is that consumers receive the benefi ts of

cleaner fuels, and Canada reduces its emissions while at the same time stimulating economic growth that comes with domestic biofuel production.

It is important, however, that these mandates be grown out over time and are by no means reduced. The CRFA is very concerned with a move by the government of Canada to reduce the mandated level for renewable diesel by excluding heating oil from the content required by the renewable fuel regulations. The proposal, based on the erroneous assumption that renewable diesel will adversely affect the cost of heating oil in Eastern Canada, would reduce the required volume of renewable diesel in Canada by as much as 15 per cent. Removing this product from the mandate will see a proportional decrease in the environmental benefit, and the available market for Canada’s innovative renewable fuels producers to meet this demand. Changing the mandate for heating oil will also further slow development of renewable fuels production and innovation in Canada’s Maritime provinces.

In many ways, these biofuels policies have ensured that Canada has kept pace with alternative fuel initiatives around the world. And while our domestic biofuels industry is a working success, the simple fact is that to meet our growing energy needs and stresses, much more needs to be done.

Maintaining policies that require renewable content in fuel is essential in order for Canada’s continued build-out of its established renewable fuels platform. And, at the same time, steps must be taken to support the successful integration and commercialization of emerging advanced biofuels technologies. Sustainable Development Technology Canada’s Next Generation Biofuels Fund is another key policy component for Canada’s renewable fuels industry and attracts private investment needed in the first years of operation. The fund, created in 2007, will be deployed toward establishing facilities that will produce the next generation of renewable fuels at a commercial stage and serves as a beacon for companies that are transitioning from an advanced demonstration stage toward a pathway to commercialization. If Canadian biofuels are to reach full potential, this fund has to be given the opportunity to succeed – and as construction begins on these plants, the economic impact will be re-invested into Canadian communities.

As a direct result of the aforementioned government programs and policies, Canadian advanced biofuels producers are establishing commercial plants that can produce biofuels from an array of new sources. They are also developing cutting-edge technologies and first-of-a-kind projects that prove the future of fuel is, in many ways, already here.

The CRFA and members remain committed to a strong domestic biofuels industry in Canada. As an industry, we also see the need to preserve and grow government support and consumer awareness to capitalize on the economic and climate benefits of domestic renewable fuel production, both from our first generation and advanced technological platforms.

Together, producers, decision makers and consumers must work together to promote and support initiatives that drive energy diversity and long-term prosperity in Canada.

The CRFA will be advancing this important dialogue at its 10th Anniversary Summit from December 2 to 4, 2013, in Montréal QC. The theme is “Fueling Growth and Innovation,” reflecting Canada’s tremendous opportunity as well as great responsibly in continuing to develop traditional and emerging biofuels in Canada. As the past decade has shown, a thriving and fully realized domestic renewable fuels industry is possible and working in Canada. And, as we strive to meet our energy and climate demands in the years ahead, the economic and environmental benefits of biofuels - for consumers, our country, and ultimately our planet - will become more important than ever.

Scott Thurlow is President of the Canadian Renewable Fuels Association.

Founded in 1984, the Canadian Renewable Fuels Association (CRFA) is a non-profit organization with a mission to promote the use of renewable fuels for transportation through consumer awareness and government liaison activities.

To see this story online visit www.biotechnologyfocus.ca/ biofuels-fueling-growth-andinnovation-in-canada/