Dr' CarolAnn Brown

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Bio-Products and Climate Change

• Dr. Carol-Ann Brown
• THECIS BioProducts Seminar
• Saskatoon
• September 27, 2005

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Presentation Outline

• Brief intro to Climate Change Central
• BioProducts
• Climate Change Challenges
• Bioproducts Opportunities and Challenges
• Canadas Offsets System
• Bioenergy Example

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Climate Change Central (C3)Introduction

• Incorporated as a not-for-profit company in early
  2000
• Designed as a private-public partnership
• The multi-stakeholder board includes
  representatives from major industry sectors,
  environmental associations, municipalities, the
  federal government and the provincial government
• Core staff of 20 individuals with expertise and
  experience across all stakeholder groups
• Head office in Calgary, smaller office in
  Edmonton

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Climate Change Central Whats our role?

• Providing Leadership
• to encourage action in Alberta on climate change
• to develop climate change partnerships and
  alliances
• Providing Strategic Intelligence
• to identify climate change priorities and
  appropriate policy frameworks
• to assist with technology and market
  opportunities
• Providing Outreach
• to increase public awareness of the issue
• to communicate Albertas accomplishments and
  solutions available

C3s focus is on reducing greenhouse gases in
Alberta. C3 is neither pro nor anti Kyoto.
We are working to define emission reduction
priorities in partnership with all stakeholders.
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BioProducts definitions

• Biomass is any type of organic material that is
  available on a renewable or recurring basis.
• It includes
• crops and trees
• wood and wood wastes
• aquatic plants and grasses
• BioProducts are products that are made from
  biomass.

Source Primer on BioProducts Pollution Probe and
BIOCAP
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BioProducts

• Bioproducts use renewable biomass as a complement
  or alternative to non-renewable petroleum-based
  feedstocks
• Opportunities include
• Biofuels
• Bioenergy
• Biochemicals
• Biomaterials
• Bioprocesses.
• A whole suite of products and services in a
  bio-economy

Source Primer on BioProducts Pollution Probe and
BIOCAP
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Why BioProducts?

• biomass used in their manufacture provides
  either a complement or an alternative to
  petroleum and petrochemicals
• Unlike fossil fuels, biomass is renewable and
  has the capacity to quickly replenish itself
  using energy from the sun.

Source Primer on BioProducts Pollution Probe and
BIOCAP
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Climate Change Challenges

• 85 per cent of the worlds primary energy supply
  comes from fossil fuels
• Oil and gas products
• fuel cars, homes and factories
• are the raw material for many different
  commercial and manufacturing industries
• are a critical ingredient in many products
  fabrics, plastics, medical components etc
• Fossil fuels emit local and regional air
  pollutants, as well as greenhouse gases

Source Primer on BioProducts Pollution Probe and
BIOCAP
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Climate Change Challenges

• Globally, the Kyoto target is 6 below 1990
  levels.
• To stabilize GHGs globally, a reduction of 50 to
  70 is needed.
• We are dealing with long-term challenges that
  require long term solutions and short-term
  action.
• The challenges are potential economic
  opportunities.

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Canadas Kyoto Commitment/Challenge
Projections
Kyoto Target
30 reduction needed 270 MT gap by 2010
Source NRCan and Climate Change Central
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Focal Points for Canada

• Canadas GHG emissions reduction
  opportunities are fundamentally related to energy
  development, energy use, land use, and water use.

Source NRCan and Climate Change Central
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BioProducts Climate Change

• Opportunities
• Reduced greenhouse gas emissions through the
  increased use of bioenergy, biofuels, and other
  bioproducts
• Challenges
• Release of greenhouse gases through increased
  harvesting of biomass and through increased use
  of petroleum based products (fertilizers etc)

Source Primer on BioProducts Pollution Probe and
BIOCAP
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An Integrated Clean Energy Strategy
-Opportunities for Bioenergy?
Energy Development
Sustainability Competitiveness
Environmental Imperatives
Innovation Technology Challenges
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When We Think Of Energy, What Outcome Do We
Want?
Energy Development
Reliable, dependable, affordable energy
Bioenergy provides opportunities for
locally produced power and heat
Sustainability Competitiveness
Environmental Imperatives
Innovation Technology Challenges
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When We Think Of Innovation And Technology, What
Outcome Do We Want?
Jobs for ourselves and our children in Canada
and in the global marketplace Bioenergy creates
jobs and regional economic development
Energy Development
Sustainability Competitveness
Innovation Technology Challenges
Environmental Imperatives
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When We As Canadians Think Of The Environment,
What Outcome Do We Want?
Clean air, clean water, and reduced
waste Bioenergy offers complete environmental
solutions
Energy Development
Sustainability Competitveness
Environmental Imperatives
Innovation Technology Challenges
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Bioenergy Provides A Crucial Piece In An
Integrated Clean Energy Strategy For Canada

• Bioenergy provides a renewable energy source
• Effectively deals with waste
• Has the ability to improve air and water quality
• Creates jobs and regional economic development
• Reduces greenhouse gas emissions
• Creates exportable technologies
• Increases customer choice

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Bioenergy from Livestock Manure

• Anaerobic digestion pilot plant
• Produced methane to power a 1 MW
  CHP unit
• Surplus power sold to the grid
• Heat used in digesters
• Solids water separation

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Bioenergy from Woodwaste

• 25MW wood-waste burning generating facility at
  Canfors saw mill in Grand Prairie
• Will supply all mills power and heat
  requirements
• The majority of the
• power exported to the grid
• Surplus heat will be routed
• to a planned District Heating
• system

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What Might Canadas Energy Reactor Look Like
(Including Bio Feedstock)?
clean gas
Olefins Petrochemicals Clean Gasoline
Methanol/ Ethanol Plant
Feedstocks Coal Oil Coke Municipal waste Wood
waste Agri-crops Manure
Hydrogen Plant
Combustion Gasification
Hydrogen
Separation Conversion
Methane Plant
Synthetic Natural Gas
Ammonia Plant
Fertilizers
Clean Power
CO2 for enhanced oil recovery coal bed methane
Electricity
Source Alberta Energy Research Institute
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What Are The Challenges For Bioenergy As Part Of
Canadas Integrated Clean Energy Strategy?

• Strong leadership is needed to drive the
  necessary policy, market, and technology
  advancements needed.
• A market signal is needed to drive significant
  market development ? Canadas Climate Change
  Offsets System
• Accelerated capital cost allowances and
  technology commercialization incentives will
  increase bioenergy investment and technology
  piloting.

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What Are The Challenges For Bioenergy As Part Of
Canadas Integrated Clean Energy Strategy?

• Communications and outreach to the farming and
  forest industry communities of the potential
  benefits of bioenergy is important
• Partnerships between industry and government
  (and between Canada and other countries) will be
  important to making significant progress.

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Canadas Climate Change Plan

• Project Green released in April 2005
• Large Final Emitters
• Climate Fund
• Partnership Agreements
• Domestic Offsets System
• Renewable Energy and Other Measures

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Canadas Offset System

• Relatively unique globally
• Aimed at getting more credits in the system than
  would be the case under Large Final Emitters
  (LFEs) alone - transformative
• Government of Canadas Climate Fund will be a
  large buyer
• Private sector (LFE) interest in purchases may be
  limited by 15 price cap
• Government of Canada is not at the moment
  arranging for offsets to be fungible with Kyoto
  compliance units

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Principles

• Delivers environmental benefits (i.e. reduces GHG
  emissions or increases removals from sinks)
• Transformational change
• Maximum scope all sectors, all types of
  projects
• Administratively simple
• Build on what exists in government and private
  sector

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Next Steps for Offsets System

• Consultations in September
• Specifications and template for quantification
• Establish Program Authority
• Registry
• Process and procedures
• Establish Climate Fund

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• Dr. Carol-Ann Brown
• Climate Change Central
• Suite 100, 999 - 8th St. SW
• Calgary, Alberta, Canada
• Telephone [phone]
• e-mail cbrown_at_climatechangecentral.com
• www.climatechangecentral.com