The role of Biomass in Alberta’s Clean Energy Plan

September 21, 2016

Alberta’s Climate Leadership Plan Alberta Innovates Bio Solutions

Patrick Guidera, RPF

•  Alberta Climate Leadership Plan •  Regulatory Approach •  Update on Bioenergy in Alberta •  Overview of Offsets •  BioResource Information

Management System (BRIMS)

Overview:

Alberta Emissions Profile •  267 Mt CO2e – total

provincial GHG emissions in 2013

•  14 percent or 33 Mt – emissions growth since 2005

•  37 percent – Alberta’s percentage of Canada’s emissions in 2013

Alberta 267 Mt Canada 726 Mt

World >43,000 Mt

Regulatory Approach – Application Specified Gas Emitters Regulation (2007) §  Apply to all large emitters (>100,000 tonnes/year) §  Intensity-based reduction requirement from facility-specific historical

baseline §  Existing facilities required to reduce GHG intensity by 15% (20% in 2017) §  New facilities ramped in to meet full requirement

Emis

sion

s In

tens

ity

(t /u

nit p

rodu

ctio

n)

2000 2020 2010 2015 2005

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Current Emissions Intensity

1.0

Baseline Period (3

year Avg. of CO2e per

unit of production)

Emissions Intensity Limit = 15% reduction from baseline intensity

Regulatory Approach – Compliance Results 2007-2014

Compliance Cycle

Total Avoided Emissions Fund

Payment At Facility Reductions

Offset Credits

2007 (half year) 2.88 Mt 0.88 Mt $41.3 Million

2008 3.93 Mt 2.68 Mt $85.4 Million

2009 3.55 Mt 3.74 Mt $61.3 Million

2010 3.57 Mt 3.85 Mt $67.4 Million

2011 5.57 Mt 5.40 Mt $55.0 Million

2012 4.61 Mt 3.20 Mt $87.7 Million

2013 4.62 Mt 2.04 Mt $98.6 Million

2014 8.12 Mt 2.55 Mt $83.4 Million

Total 36.85 Mt 24.34 Mt $577.9 Million

Total Emission Reductions 61.2 Mt

Timeline of Key Actions

2002 - Released Albertans & Climate Change: Taking Action (first provincial strategy in Canada)

2003 - Climate Change and Emissions Management Act passed (first legislation to establish economy-wide price on carbon in North America)

2004 - Specified Gas Reporting Regulation 2007 - Specified Gas Emitters Regulation (first economy-wide price in Canada) 2008 - Revised provincial Climate Change Strategy 2015 - Amended Specified Gas Emitters Regulation

(reduction requirements and carbon price increased) 2015 – Climate Leadership Plan

Alberta’s Climate Leadership Plan Key Initiatives

1.  Implementing a new carbon economy-wide price on GHG –  carbon levy on transportation and heating fuels – Emissions intensity pricing replaces emissions performance based system –  generated funding will be recycled back into the economy

2. Phasing out emissions from coal-generated electricity (2030)

replacing renewable sources and natural gas

3. Legislated oil sands limit of 100 (Mt) per year

4. New methane emission reduction strategy to reduce methane emissions (oil and gas sector) by 45% from 2014 levels by 2025

Alberta’s Climate Leadership Plan Key Initiatives

Climate Leadership Plan- Budget 2016

•  Over the next 5 years, the carbon levy is expected to raise $9.6 billion, all of which will be reinvested in the economy and rebated to Albertans –  $6.2 billion will help diversify our economy and create new jobs:

•  $3.4 billion for large scale renewable energy, bioenergy and technology

•  $2.2 billion for green infrastructure like transit •  $645 million for Energy Efficiency Alberta, a new provincial

agency that will support energy efficiency and community energy system programs and services for homes, businesses and communities

Bill 20-Climate Leadership Implementation Act: Three main functions

1.  Provides authority to implement the carbon levy, outline the carbon price, and create the necessary administrative framework. It will also set out the framework for consumer rebates and exemptions.

2.  Proposes new Crown agency, called Energy Efficiency Alberta, tasked with delivering energy efficiency and community energy system programs on government’s behalf.

3.  Enables government to use carbon revenue collected for the CCEMF for a broader range of climate related purposes.

Climate Leadership Plan- Forestry Sector

•  Forest sector feedback to Climate Change Advisory Panel

– Panel heard climate change challenges exist from invasive species (mountain pine beetle) and drought and increased forest fires.

– Many opportunities exist especially in the areas of energy

efficient building materials and new bioenergy production.

When something goes wrong!!

Update on Bioenergy in Alberta

•  Alberta realizes that the bioenergy industry is important, and are looking at options to enable the industry to become more sustainable in the long run.

•  An RFP for a consultant was posted in August and a contract has been awarded –  intent to look at policy options for long-term sustainability for

bioenergy industry –  The consultant will facilitate targeted engagement with the bioenergy

sector •  Bioenergy Producer Credit Program (BPCP) expired in March

2016. –  consultant is assessing long-term options for the bioenergy industry,

the Climate Change Office looking at options to assist industry in short-term.

Update on Bioenergy in Alberta

The consultant will be looking at:

– Economics of each sector, including barriers to entry –  Jurisdictional analysis of bioenergy policies and whether or

not they are successful – Review of GHG reductions associated with each sector –  Identification and assessment of possible policies/programs

that will enable the bioenergy sector to become economically self-sustained in the long term

Alberta Biomass & Coal Plant Producers AESO Current Supply Demand Report

6299 MW

437 MW

http://ets.aeso.ca/ets_web/ip/Market/ Reports/CSDReportServlet

Offset Opportunities for Bioenergy

$20 per tonne carbon

levy will take effect on

January 1, 2017

$10.5 billion in new investment will flow into

the provincial economy

by 2030. This will mean at

least 7,200 new jobs

Renewable Electricity Program, based in Alberta, five megawatts or > size, meet the Natural Resources Canada definition of renewable sources

30 per cent of electricity coming from renewables in 14 years is achievable Robert Hornung, Canadian Wind

Energy Association

Government of

Alberta will support

5,000 megawatts of

additional renewable

energy

Biomass Protocol

•  The Biomass Protocol provides an opportunity for the generation of emission offsets from the combustion of biomass materials including wood waste.

•  The publication (March 2015) of the Avoided landfill and stockpile methane emissions methodology enables project developers to generate additional emission offsets when wood waste is diverted from a Class II landfill or a stockpile.

•  2 projects (revised biomass protocol) - lifetime reductions of 400,000 tonnes of CO2 e

•  6 projects (original biomass protocol) - reduction of 3.5 mega tonnes of CO2 e

Climate Leadership Plan Alignment

•  Some adjustments to offset system are anticipated to align with the Climate Leadership Plan

•  Details of the system adjustments and timing of these are not finalized

•  The climate change office is aware of the challenges the bioenergy industry is facing during this time of transition and endeavors to provide information when it is available

•  Alberta to float oil to tidewater by Zeppelin •  April 01, 2016 Media inquiries •  New technology bypasses NEB, interprovincial

disputes •  The Government of Alberta has cracked the energy

industry’s market access issues with a new initiative to ship bitumen, oil and natural gas directly to foreign markets using Zeppelin balloons.

•  The New Zeppelin Project will allow Alberta’s energy products to reach international markets without the involvement of the National Energy Board, or difficult negotiations with other provinces.

Alberta’s Research & Innovation Framework

Innovation and Advanced Eductation

ARIA Alberta Research

& Innovation Authority

Alberta Innovates:

Technology Futures

Alberta  Innovates: Health

Solutions

Alberta  Innovates: Bio

Solutions

Alberta  Innovates: Energy  &  

Environment Solutions

Government of Alberta Ministries

Advanced Education & Technology

Government  of  Alberta

Post Secondary Institutions and Other Research Performers

Research  &  Innovation  Organizations

Advice from Industry and Society ‘Capturing Value’ from Industry for Society

Research and Innovation Connector

Alberta  Enterprise  Corporation  

Commercialization  Service  Providers  

Agriculture and Forestry

Alberta Livestock and Meat Agency

Alberta Crop

Industry Developme

nt Fund

Economic Development

and Trade

Ministries

Government of Alberta

Health

Alberta Innovates

Health Solutions

Alberta Innovates

Bio Solutions

Alberta Innovates

Energy and

Environment

Solutions

Research and Innovation Organizations

Collaboratories

 

Alberta’s Research & Innovation System

Innovation and Advanced Eductation

ARIA Alberta Research

& Innovation Authority

Alberta Innovates:

Technology Futures

Alberta  Innovates: Health

Solutions

Alberta  Innovates: Bio

Solutions

Alberta  Innovates: Energy  &  

Environment Solutions

Government of Alberta Ministries

Advanced Education & Technology

Government  of  Alberta

Post Secondary Institutions and Other Research Performers

Research  &  Innovation  Organizations

Advice from Industry and Society ‘Capturing Value’ from Industry for Society

Research and Innovation Connector

Alberta  Enterprise  Corporation  

Commercialization  Service  Providers  

Agriculture and Forestry

Economic  Development  and  

Trade  

Ministries  

Government  of  Alberta  

Health

Alberta  Innovates  Health  

Solu=ons  

Alberta  Innovates  

Bio  Solu=ons  

Alberta  Innovates  Energy  and  Environment  Solu=ons  

Research  and  Innova=on  Organiza=ons  

Collaboratories

InnoTech Alberta

Proposed November 1, 2016

Energy Alberta

Research Innovation Committee

InnoTech Alberta

Alberta Innovates

Environment and Parks

Food, Fibre, Environment, Energy, Health

Bill 11 proposes to merge four existing Alberta Innovates corporations into one. This leaner entity would build on the strengths of each corporation while enabling a stronger, more responsive research and innovation system.

• Area:  En%re  Province    • Shows:  Forest  biomass  yield  and  agriculture  crop                                      biomass  by  Township    •     Data  Sources:      

•  Alberta  Agriculture  and  Forestry  Phase  III  forest          inventory,    •  Automated  Land  Inventory,    •  Agriculture  Sta%s%cs  Yearbook,      •  A&AFC  annual  crop  inventory,    •  crop  insurance  data,    •  Canadian  aboveground  forest  biomass  equa%ons  

BioResource  Informa5on  Management  System  *  Agriculture  and  Forestry  Biomass  Public  Inventory

*  BRIMS

 

Data  Framework  

BRIMS Web Application

Summary

• BRIMS will provide an interactive web application for mapping and reporting on biomass & other ecosystem services in Alberta

• Growing interest in the supply of biomass and other ecosystem services

• BRIMS collates data from various sectors into a comprehensive database

Funded by the Government of Alberta

Patrick  Guidera,  Director,  Forest  Technologies,  Alberta  Innovates  Bio  Solu%ons    pat.guidera@albertainnovates.ca    780-­‐638-­‐3722    

         About  BRIMS:  Jordan.Hayes@silvacom.com    

                           Ongoing  updates:  www.Alberta.ca/Climate      

 

Thank  you!