Associations Call for Canadian Clean Fuel Strategy (Ind. Report)
Wood Pellet Association of Canada
Advanced Biofuels Canada, Canadian Biogas Association, Canadian Gas Association, Electric Mobility Canada and Wood Pellet Association of Canada are forecasting greenhouse gas (GHG) emissions reductions of over 50 million metric tons (Mt) per year by 2030 through greater production and use of renewable energy in Canada.
Collectively, the associations say they represent technologies that can, with the right policy measures in place, exceed the proposed federal Clean Fuel Standard's objective of 30 Mt of annual GHG emission reductions by 2030.
To that end, the associations are calling on the Canadian federal government to adopt a Clean Fuel Strategy by 2020. The strategy would include setting a clear path to clean and renewable fuel use by 2030 by: establishing clear market signals for clean fuels and electric vehicles; aligning clean and renewable fuel regulations to meet targeted clean fuel and EV use; establish clean fuel program funding to support clean and renewable fuel production capacity and infrastructure investments, and support EV adoption; and
Support research and development programs to maintain Canadian leadership in clean fuel technologies and innovation. (Source: Wood Pellet Association of Canada, Biomass Mag., Sept., 2019) Contact: Wood Pellet Association of Canada, www.pellet.org; Canadian Biogas Association, (613) 822-1004, www.biogasassociation.ca; Advanced Biofuels Canada, Ian Thompson, Pres., (604) 947-0040, email@example.com, www.advancedbiofuels.ca
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WPA Takes Canadian Clean Fuel Standard to Task (Ind Report)
Wood Pellet Association of Canada
Since 2017, the government of Canada has been developing the Clean Fuel Standard (CFS), a low carbon fuel standard-type policy, to reduce the life-cycle carbon intensity of fuels and energy used in Canada. The CFS aims to achieve 30 million tonnes CO2e (carbon dioxide equivalent) of annual reductions in greenhouse gas emissions (GHG) by 2030.
The Wood Pellet Association of Canada (WPAC) has been providing input to Environment and Climate Change Canada (ECCC) as it works to design and shape the CFS. And, upon review of ECCC's proposed regulatory approach, WPAC is seriously concerned that the government will not allow end-use fuel switching in the buildings/stationary fuel use sector.
WPAC believes it is unfair for ECCC to recognize fuel switching from gasoline to electricity or hydrogen in transportation, but not to recognize switching from heating oil to solid biofuels -- wood pellets or chips -- for Canada's second largest renewable energy product -- solid biomass heating.
To that end, WPAC made the following representations to ECCC:
One of the three primary objectives of the CFS is low-cost compliance. By prohibiting recognition of fuel switching for stationary applications, ECCC will actually significantly increase the cost of CFS compliance, exclude the forest sector from participation in the short-term, and inhibit investment in the most proven commercial technology for displacement of heating oil -- wood pellet and chip boilers.
Canada consumes approximately three billion lpy of heating oil, the majority of which is consumed by Canadians in rural and Atlantic Canada. The latter accounts for 44 pct of heating oil consumption in the residential sector and 50 pct of heating oil consumption in the commercial/institutional sectors. Rural and Atlantic Canada also have among the lowest per capita income. ECCC's proposed regulatory approach will make CFS compliance for these low-income areas significantly more expensive than for those living in cities.
Under ECCC's proposed regulatory approach, the principal mechanism for ensuring compliance from heating oil primary suppliers will be to blend renewable diesel with heating oil. Since heating oil has low carbon intensity (CI) relative to other liquid fuels and much of the crude used to produce heating oil is sourced from outside of Canada, there is less opportunity for upstream reductions than with other liquid fuels. The 2030 target of 74 g CO2e/MJ is less than heating oil combustion emissions, meaning upstream efficiency improvements will be insufficient to meet the requirements. The only heating oil-miscible fuel that can also be stored outside in winter, as is often the case with heating oil, is renewable diesel.
Renewable diesel has a useful heat fuel cost of $65-82 per gigajoule (GJ) ($234-295 per MWh. In contrast, wood pellets, at $300-350 per tonne for residential sales, have a useful heat fuel cost of $20-24 per GJ. Wood pellets also have half the of default renewable diesel (29 g CO2e/MJ). Wood chips are half the carbon intensity of wood pellets which means, on an implied carbon price basis and assuming wholesale $0.75 per litre for heating oil, blending renewable diesel with heating oil has a fuel cost of $630/ per tonne CO2e to 884 per tonne CO2e. Switching from heating oil to wood pellets saves money on a fuel basis, in addition to avoiding taxes on heating oil.
In this case, there is little reason to implement a complex policy such as the CFS.
Despite the billions of dollars invested in lignocellulosic liquid transportation biofuels, all technologies are still pre-commercial -- especially forest feedstock-based liquid transportation biofuels due to the recalcitrant structure of wood fibre. Co-processing of pyrolysis oil or biocrude in existing oil refineries at a meaningful volume will not occur before 2030. The forest sector represents over 75 pct of annually-available biomass resources in Canada and its exclusion from participation in the liquids class will dramatically increase the cost of fuel, especially in rural communities where wood chips and bioheat are a cost efficient and convenient source of energy.
(Source: WPAC, Canadian Biomass, Environment and Climate Change Canada, 26 Aug., 2019)
Contact: Wood Pellet Association of Canada, Gordon Murra, Exec. Dir., ; Environment and Climate Change Canada, www.canada.ca › environment-climate-change
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