manitoba’s renewable energy policies and directions

Renewable Energy Use in Transportation

Manitoba’s Renewable Energy Policies and Directions

June 20, 2005

Robert Parsons, MBA, P.Eng.Hydrogen Specialist

Manitoba Energy Development [email protected] (204) 945-6077

• EDI was initially created in 2001, and currently combines in one location:- Energy Policy;- Energy Economic Development; and- Climate Change

• Previously many different departments worked on these files but nothing was coordinated

• EDI is housed in the Department of Energy, Science & Technology

Energy Development Initiative (EDI)

• EDI is working with partners on a series of relevant renewable energy-related priorities:1 New generation hydroelectric developments in

Manitoba’s North, in particular linked to potential export power sales

2 Wind power development3 Biofuels, including ethanol, biodiesel, and methane4 Hydrogen

• Additional priorities include: ground-source heat pumps, efficiency, GHG trading, “green” design standards, community programs (C4), impacts & adaptation

Renewable Energy Priorities

• Focus on taking advantage of Manitoba’s diverse renewable resources, particularly to displace imported fossil fuels• Net outflow of $1 to $2 billion/yr for fossil fuels

• Focus on obtaining economic development benefits for Manitobans

• Use of multi-stakeholder input/coordination bodies to provide overall directions

• “Portfolio” mix of opportunities:• Some near term (e.g. ethanol)• Some longer term (e.g. hydrogen)

Common Features of Priorities

NEW GENERATION

HYDRO

Major source of renewable electricity with three new projects by Manitoba Hydro, representing 2,000+MW:• Wuskwatim

• 200 MW with 85% capacity factor, yielding ~1.5 TWh/yr

• Conawapa• 1,250 MW with 65% capacity factor, yielding ~7.0 TWh/yr

• Keeyask (Gull)• 620 MW with 80% capacity factor, yielding ~4.4 TWh/yr

New Generation Hydroelectricity

• Wuskwatim is furthest advanced:• Project has completed environmental review• Awaiting upcoming referendum by

Nisichawayasihk Cree Nation project partners• Anticipated in-service date of around 2011• Project justification based on export sales,

primarily to the U.S.

• Other projects, particularly Conawapa, linked to ongoing export power sale discussions

Current Status

• New and diversified source of renewable energy:• Manitoba has a world-class wind resource

• Measure of protection against cyclic drought conditions and associated financial losses

• Rapidly developable source of electricity for near-term exports

• New economic development opportunity for rural communities

• Basis for high-tech supporting manufacturing sector

Why Wind in Manitoba?

Characteristics• 99.5 MW, yielding ~0.4 TWh/yr• One of Canada’s largest projects• 63 turbines

Turbines• Rotor diameter of 82 m (>747 wings)• Hub height of 80 m

Benefits• Investment of ~$210 million• 300 construction jobs• 10+ operation/maintenance jobs• Landowner revenue per turbine• First turbines installed and operating• Developing “Wind Rush” in rural Manitoba

St. Leon Project

1.65 MW wind turbine as used at St. Leon

St. Leon Site

Winds of Opportunity –Clean Power for Manitoba’s FutureThe Manitoba Government’s Planfor Future Development of Wind Power

O C T O B E R , 2 0 0 4

The Future is Bright for Manitoba’s Wind Industry

Manitoba plans to develop up to 1,000 megawatts (MW) of wind within approximately the next

decade. The exact amount of wind that will be integrated will depend

upon ongoing technical and economic feasibility assessments.

Manitoba will also set aside approximately 50 MW to supportthe development of smaller wind

projects.

Note: 1,000 MW with 40% assumed capacity factor yields ~3.5 TWh/yr

BIOFUELS

• Biofuels include ethanol, biodiesel and methane (from anaerobic digestion):• Anaerobic digestion more focused on waste and

nutrient management - theoretically usable for vehicle fuel but not a practical priority

• Biofuels featured in The Economist (May 14th)• Benefits of “green” fuel and enhanced fuel

“security,” but increasingly “competitive cost”

• Primary focus for biofuels in Manitoba:• Rural economic development and diversification• Alternative uses for agricultural products

Biofuels

ETHANOL

• Ethanol is a renewable, high-octane, oxygenate fuel:• Co-product of cereal grain

fermentation process, with high protein content feed (DDG) also a co-product

• Ethanol from cellulose (e.g. wood or straw) still developing and may be used in future

• Manitoba’s firsts in Canada:• First province to have incentive

for ethanol-blended fuel• First fuel ethanol plant - Husky

(Mohawk) operating in Minnedosa since early 1980s

Ethanol - Historic Leadership

Ethanol Brochure from 1981

• Ethanol Advisory Panel appointed to consider ethanol and consult with Manitoba stakeholders

• Report issued in December 2002

• Manitoba Ethanol Office established in 2003

• Biofuels Act passed in 2003, but not yet proclaimed:• Mandate for 10% ethanol

(E10) in 85% of gasoline fuel• 8 year tax preference

Ethanol – Recent Background

• Near-term opportunity:• Economic and environmental

benefits for Manitoba

• Potential for 140 to 160 million Litre annual domestic production for Manitoba:• Save $55 million/yr on imports• High quality feed co-product

• Additional export potential • Four projects now being

considered in Manitoba• Hope to have ethanol

announcement this summer

Ethanol - Current Status

• Communications:• Series of info documents

• Targeted R&D by EDI:• DDG use for food (FDC)• DDG drying (U of M)• DDG for hog feed (U of M)• DDG markets (Consultant)

• Leadership on E85:• First E85 fueling station in

Western Canada opening shortly in Winnipeg

Ethanol – Further Actions

• Major recent research funding announcement by Husky Energy at the University of Manitoba

• New “Husky BiofuelResearch Fund” focused in two primary areas:• Feedstock development• Process efficiency

improvements through advanced bioengineering

Ethanol – Further Activity

BIODIESEL

(Photograph Courtesy of Manitoba Hydro)

• Report of the Biodiesel Advisory Council issued in February 2005

• Council is a non-government body and made a series of recommendations

• Government response to report is expected in a few months

• Ernie Doerksen will talk more about biodiesel later today

Biodiesel - Current Status

• Manitoba recently received $2 million for community-based biodiesel initiatives:• Federal Opportunities

Envelope funding • Biodiesel identified as

the single most effective measure to reduce GHGsfrom diesel vehicles

• Manitoba Hydro now incorporating biodiesel in fuel for their heavy-duty vehicle fleet

Biodiesel – Further Actions

HYDROGEN

• Released in April 2003

• First of kind in Canada

• Identified series of priority actions for province as a whole

• Has set stage for follow-up activities

Hydrogen Opportunities Report

• Manitoba’s Hydrogen Steering Committee in its report originally identified five priority actions, with a sixth more recently added:

1. Buses and refueling demonstrations2. By-product hydrogen fuel cell demonstration3. Hydrogen Centre of Expertise4. Manitoba Hydro Dorsey on-site generator5. MOU with Iceland6. Permanent refueling station

Hydrogen Priority Actions

Demonstration completed in March 2005 using novel hybrid technology and involving more than 14 organizations – separate public report.

HHICE Transit Bus Demonstration

HHICE Bus in transit service in Winnipeg Temporary refueling at Red River College

Project is led by Hydrogenics and announced by Premier Doer in 2002. Winnipeg demonstration of bus is planned for the spring of 2006.

Hybrid Fuel Cell Bus

The most advanced and efficient fuel cell-powered bus in the world

But …

How do these various initiatives fit together?

… particularly regarding energy use in transportation?

Changes in Vehicles and Fuels

Conventional Energy

Integrated (Grid-Connected)

Isolated

Clean Energy

Matrix illustrates two major axes of change

Rough Mapping of Possible Options

Conventional Energy Clean Energy


Isolated

Gasoline ICE

Current conventional vehicles start out way down here




Isolated

Gasoline ICE Biofuel ICE

Immediate near-term moves to clean energy using biofuels




Isolated

Gasoline ICE

Gasoline PHEV

Gasoline Hybrid

Battery-based Vehicle

Moves toward more electric vehicles




Isolated

Gasoline ICE

Pure H2 Fuel Cell

Hybrid H2 Fuel Cell

Gasoline PHEV

Biofuel ICE

Biofuel PHEV

Gasoline Hybrid Biofuel Hybrid

Battery-based Vehicle

+ Combinations and other advanced technologies

General Overall Trends

Conventional Energy


Isolated

General Overall T

rends

Clean Energy

… But Many Paths to Get There

Conventional Energy


Isolated

Clean Energy

• Concurrent overall trends towards:• Cleaner transportation fuels; and• More electrified vehicles having greater

interconnection to the grid• “G2V”, “PHEVs” and “V2G” are popular topics

in the literature today

• Many paths leading in the same directions:• Uncertainty regarding technology “winners”• No guarantees of success• Today these different paths are more

complementary in nature than competitive

How Do They Fit Together?

How Could They Fit In? (Photograph Courtesy of Red River College)

Plug-in Hybrid Electric Vehicles

• Fuel costs - Manitoba has the highest ratio of retail gasoline-to-electricity cost in North America, so this could make sense

• GHG reductions - Shift from gasoline to electricity produces 100% GHG reduction

• Plug-in culture/infrastructure - Manitobans already plug-in their cars and a nascent “smart” recharging network exists

• Interesting future match to wind - PHEVsrequire only “energy” from grid, while wind can be rapidly deployed to meet growth

Potential Benefits of PHEVs

• Hydrogen and PHEVs are related• Both involve electrification of vehicles • Both involve advanced energy technologies• Both involve a cross-over of energy and

transportation applications• Both have complementary niches:

• Heavy duty buses for Hydrogen• Light duty commuter cars for PHEVs

• Both have no guaranteed outcome

Hydrogen is the Model for PHEVs

• Manitoba has an already well-developed hydrogen process:

• Appropriate umbrella to consider PHEVs as an alternate advanced energy technology

• Appropriate multi-stakeholder entity (Hydrogen Steering Committee) for overall guidance

• Manitoba’s Hydrogen Steering Committee has already taken leadership to act as the provincial coordinating body for PHEVs as an advanced energy technology

Hydrogen is the Model for PHEVs

• Manitoba is pursuing portfolio of renewable, clean energy pathways, including:

• Hydroelectricity; wind; biofuels; hydrogen

• Manitoba is rapidly becoming recognized as a world leader and “hub” for renewables

• Developing technology and other expertise to capitalize on benefits

• Renewable energy has strong benefits to the environment, but more importantly represents a bright economic future for Manitobans

CONCLUSIONS

Reports cited in presentation and more information available on the internet:

http://www.manitobaenergy.ca

QUESTIONS?

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