Energy Solutions for Our Farms Policy Forum

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Energy Solutions for Our FarmsPolicy Forum

• Peter Boswall, vice-Chair,
• Inter-Departmental Biofuels Committee

November 18, 2008
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Present Energy Situation

• Total Energy Mix by Type

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Present Energy Situation

• Total Energy Mix by Fuel Type

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Environmental and Renewable Industries Committee
(ERIC)

• ERIC established by Executive Council in Sept.
  2007
• Determine available feedstocks for potential
  production of biofuels
• Submit policy recommendations regarding
  development of these resources
• Final report delivered in January 2008
• Evaluation Committee, chaired by Agriculture
• Pursue measures that encourage economically
  viable biofuel projects that are consistent with
  our energy goals, respective of our environment
  and return maximum benefit to all Islanders
• http//www.gov.pe.ca/photos/original/dev_ericfinal
  .pdf

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Increased Interest in Renewable Energy

• Sustainable development of renewable
  technologies
• Climate Change
• Volatility in fuel prices
• Security and supply of energy resources
• Economic benefits to agriculture and forestry
  sector.

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Applicability of Biofuel Development

• Climate Change
• Green House Gas emission reduction targets
• Vulnerable coastline
• Volatility in Fuel Prices
• Reduce dependence on imported fossil fuels
• Security and supply of energy resources
• Diversify PEIs energy mix
• Socio-economic Opportunity
• Alternative source of income for farmers and
  foresters

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Inter-Departmental Biofuels Committee

• Executive Council sanctioned the creation of the
  Inter-Departmental Biofuels Committee
• Composed of representatives from
• Agriculture
• PEI Business Development Inc.
• Innovation and Advanced Learning
• Environment, Energy and Forestry
• Fisheries and Aquaculture
• Provincial Treasury
• Transportation and Public Works

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IDBC Mandate

• Evaluate biofuel project proposals on the
  potential economic, environmental and social
  benefits to PEI
• Work with biofuel proponents to identify
  applicable federal/provincial assistance
  programs
• Make recommendations to Executive Council on
  feasibility of a mandated renewable fuel standard
  for transportation and/or heating fuel
• Identify potential biofuel demonstration projects
  that could be implemented at government
  facilities and in government vehicle fleets
• Ensure activities of IDBC are strategically
  linked with the economic innovation strategy
  being developed by the Office of Bioscience and
  Economic Innovation

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Project Proposals - Evaluation

• Each pilot or project proposal that comes before
  IDBC will be reviewed to ensure projects will be
• consistent with the provinces energy goals
• be respective of the environment
• provide social benefit to P.E.I. and
• be economically sustainable.

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Specific Areas for Consideration

• Identification of a feedstock supply
• Market potential for the end product
• Certainty of a return for feedstock supplier
• Potential net benefit to the Province and
• Environmental benefit to the Province
• Impact on GHG/climate change

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Analytical Reviews

• Review of Environmental Performance of a Sugar
  Beet Ethanol Plant
• Addressing Barriers Restricting Bioenergy
  Installation on PEI
• Cellulosic Ethanol Development in PEI
• Potential for District Heating Plant using Straw
  as Fuel Source

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Presentations made to IDBC

• Atlantec BioEnergy Corporation
• Pellagri
• City of Summerside
• H.I. Construction
• European Biomass Utilization

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Liquid Biofuel Policy Framework

• Objective
• Recommend a framework to guide policy development
  for the production and consumption of low carbon
  liquid biofuels on Prince Edward Island.
• Recommend specific initiatives that provide
  Island consumers with affordable and sustainable
  clean liquid heating and transportation fuel
  alternatives.

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Liquid Biofuel Policy Framework

• Low carbon liquid fuels are a practical
  alternative for replacing a portion of imported
  transportation and liquid heating fuels.
• While promoting GHG reductions, adoption of the
  Low Carbon Fuel Standard (LCFS) allows industry
  to drive best practices in alternative fuel
  technologies, at the lowest cost to the consumer.
• Consistent with the proposed PEI Energy and
  Climate Change Strategies, and the evolving
  Island Prosperity Strategy (IPS).

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Liquid Biofuel Policy Framework

• Environmental Implications
• Adoption of a Low Carbon Fuel Standard (LCFS)
  tends to favour local production and would
  normally preclude older and inefficient
  technologies (i.e., corn ethanol) from being
  produced on PEI.
• Endorsement of the LCFS approach would require
  that approved liquid biofuels must contribute to
  a reduction in GHG emissions, relative to the use
  of imported oil.
• Proposals for establishment of bio-refinery on
  PEI would be subject to applicable Federal and
  Provincial Environment Impact Assessment (EIA).

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Council of the Federation (COF) - Bioenergy
Activities

• 2007 - COF agreed to develop strategies to
  implement a national biofuels hydrogen
  distribution systems with the goal to
  significantly reduce greenhouse gas emissions.
• Biodiesel and ethanol are the two only bio-based
  fuels that have been considered for
  transportation.

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New England Governors Eastern Canadian Premiers

• Transportation Air Quality Plan 2008
• Created a Transportation and Air Quality Steering
  Committee to implement action related to
  transportation. Three of the five action items
  could also relate to the use of bio-based fuels
  for the improvement of air quality
• Promote biofuel development,
• Infrastructure funding,
• Sustainable growth,
• Vehicle efficiency,
• Transportation planning mechanisms
• Is there a desire to move the discussion in the
  above bodies toward reducing fossil fuels for
  domestic and institutional space heat?

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Proposed Energy Strategy

• Objectives
• Environmental Sustainability
• Energy Security
• Economic Development

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Proposed Climate Change Strategy

• Seek cooperation and build partnerships to
  achieve emission reduction
• Work towards a regional approach to addressing
  climate change
• Coordinate the efforts of all departments
  involved in addressing climate change, and
• Pursue cooperation through new initiatives as
  well as building on existing initiatives

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Proposed Energy/Climate Change Strategies
Elements for Consideration

• Codes and regulatory barriers affecting the
  development of biomass fuels
• Demonstration of biomass technologies in public
  buildings
• Installation of biomass heating systems in homes
  and businesses
• Biomass for combined heat and power generation
• Opportunities for pure plant oils
• Incentives for renewable fuels
• Renewable fuel standards for ethanol and
  biodiesel
• Low carbon fuel standards
• Appropriate policy mechanisms to facilitate the
  development of community based energy systems
• Feasibility studies for co-generation and
  community based energy projects

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Are there areas where we can

• Work toward common goals that are beneficial to
  each province?
• Share in the cost of feasibility studies and
  reports?
• Co-ordinate responses?
• Develop a Maritime approach to federal funding?

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In Summary

• Policy for PEI will be orientated toward
  environmental goals such as greenhouse gas
  reduction.
• Movement to significantly reduce GHGs will have
  to involve technologies that replace fossil fuels
  for space heat.
• During public meetings held across the Island
  concerning the development of the new Energy
  Strategy Islander indicated support for
  community-based renewable energy projects.