Bioheat Community of Practice Northern Ontario Bioeconomy Strategy Update

March 12, 2015

Today

• Share NO-BS framework and scope

• Share project types

• Drill down on the 100 KM Heat Diet

• Trigger discussion

• Build networks

• Call to action

About the BIC

Mandate: Develop a sustainable

bioeconomy for northern Ontario

An economy founded on biomass instead of

fossil fuels

…

where the basic building blocks for

materials, chemicals and energy

are derived from renewable biological

resources,

such as plant and animal sources

McCormick, Kes and Kautto, Niina, The Bioeconomy in Europe: An Overview, Journal of Sustainability, 2013

Definition: Bioeconomy

Definition: Bioproducts

From

Fossil

Fuels

to

Biomass

Drivers

Sustainable economic development

Northern energy poverty is “heat” poverty

Harvest future market opportunities

First Nations engagement - UOI

Critical plank in GHG reduction strategy

Figure - Economic Impacts of Forestry Downturn 1999-2012

Source: Natural Resources Canada Statistical Data,

https://cfs.nrcan.gc.ca/statsprofile/employment/on

Economic Recovery of Key Sector

Figure - Renewable Energy Employment by Technology Source: IRENA Renewable Energy

and Jobs Report, 2014 http://www.irena.org/publications/rejobs-annual-review-2014.pdf

Bioenergy creates jobs….lots of jobs

Figure - Residential Energy Use in Canada by activity, 2010 Source: Energy Efficiency Trends

in Canada 1990-2010, Natural Resources Canada.

http://www.nrcan.gc.ca/energy/products/categories/heating/13740

Heat Need > Electricity Need

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Fuel Oil (#2) Electricity Natural Gas Propane Wood Pellets

Pe

r M

illio

n B

TU's

Heating Fuel Cost Comparison

Wood Energy = Cheaper Energy

Fuel Cost Comparison Spreadsheet: Energy Information Agency, US Government.

http://www.eia.gov/tools/faqs/heatcalc.xls

1M+ homes

In Ontario DO NOT

have access to NG

Figure - World Biobased Market Penetration 2010-2025 Source: USDA, U.S. Biobased Product

Market Potential and Projections

https://www.bio.org/sites/default/files/20100310_biobased_chemicals.pdf

Biocomposites and biochemicals = boom!

6280

4540

520 360

0

1000

2000

3000

4000

5000

6000

7000

Oil Natural Gas Wood Pellets Wood Chips

kilo

gra

ms

Annual total CO2 emissions to heat a

typical house (20,000 kWh/yr)

Figure - GHG Emissions from different heating fuel types Source: Biomass Energy

Centre

http://www.biomassenergycentre.org.uk/portal/page?_pageid=75,163182&_dad=portal&_

schema=PORTAL

Reduce GHG

Reality Check

• Bioenergy

• Still 5 years to get ECA

• Fragmented policy and regulatory barriers

• Wasted resources in one-off “battles”

• Little development of domestic bioenergy market

• All projects

• Challenges securing supply

• Immature supply chains

• Few opportunities for “touch and feel”

• Northern communities have scarce resources

• Minimal benefit-sharing with FN’s and muni’s

No over-arching strategy

Policy and Regulatory Framework

MOE&CC – Environmental Compliance Approvals

MOE&CC – Renewable Energy Approval MNR&F - Forest tenure reform

MOE – Electricity vs Energy

MG&CS – TSSA boiler regulations

OMAFRA – Agricultural exemptions

Policy “holes” Quebec – no construction waste to landfills

UK – renewable heat incentives Internalized price of carbon

CETA - non-tariff trade barriers “disappear”

No over-arching strategy

Northern Ontario Bioeconomy Strategy

Union of Ontario Indians & Nipissing University/BIC

Northern Ontario Bioeconomy Strategy

• Project Outline • Develop framework (SEP-DEC)

• Take it to the people (JAN-FEB)

• Identify demo project locations and partners (FEB-MAR)

• Finalize the strategy (MAR-APR)

• Secure funding to implement the strategy (MAR-APR)

• Mission to Finland and Sweden (JUN)

• Prioritize model/foundational projects (Summer 2015)

• Host Northern Bioeconomy Conference (Fall 2015)

• Develop model/foundational projects (2016-2020)

Northern Ontario Bioeconomy Strategy

Sustainable Supply

Bioenergy & Biofuels

Biocomps & Biochems

Medicines & Foods

Policy and Regulatory Reform

Skills & Training

Northern Ontario Bioeconomy Strategy

Sustainable Supply

Challenges:

Long term supply security

Supply chain immaturity

Benefit-sharing and equity

Aging equipment and workforce

Proposed Projects:

Community Forest Coop

Regional Aggregator

Harvesting Modernization

Community Forest

• Nawiinginokiima Forest Management Corporation

• Pic River, Pic Mobert, Hornepayne AC, Marathon,

Hornepayne, Manitouwadge and White River

Regional Aggregator

Regional

Aggregator

Secures supply

through many

ST contracts

Offers

customers LT

contracts

Northern Ontario Bioeconomy Strategy

Bioenergy &

Biofuels

Challenges:

Growing export market

Immature domestic market

Heat entrepreneurship capacity

Proposed Projects: Export pellet mill

100 km Heat Diet

District Heating

Combined Heat & Power (Cogen)

Commercial/MUSH conversion

Northern Ontario Bioeconomy Strategy

Biocomps &

Biochems

Challenges:

Growing market for comps & chems

Lean capacity for innovation

Identification of the “killer app”

Perceptions

Proposed Projects:

Phase 1

CLT/EW project

Light manufacturing bioproduct park

Phase 2

Industrial Biochemicals & Biocomposites

Northern Ontario Bioeconomy Strategy

Medicines & Foods

Challenges:

Ensuring respectful/sustainable

marketing of traditional foods/meds

Food security

Proposed Projects:

Develop new “market” model

Biomass greenhouses

Northern Ontario Bioeconomy Strategy

Skills & Training

Manitoulin Expositor

Coordinated and timely training and skills

Ensure traditional knowledge is captured and shared

Leverage Biomass Innovation Centre curriculum Sustainable Harvesting

Bioenergy 101

Commercial Bioenergy

Northern Ontario Bioeconomy Strategy

Top-down regulatory and policy modernization initiative – MOE & CC

Inter- and Intra- Ministry cooperation and coordination

Provincial support of NO-BS Insurance policy reform

Task force created to drive the above

Policy and Regulatory Reform

Model Bioeconomy Region

• No access to natural gas = huge energy costs

• Economic collapse after forestry downturn

• Youth outmigration, shuttered commercial sector, unemployment 10%> than avg

• First community – managed forest in the new tenure model

• Nawiinginokiima - Ojibway word for “working together” • Ojibways of the Pic River First Nation, Pic Mobert First Nation, Hornepayne Aboriginal community,

Marathon, Terrace Bay, Hornepayne, Manitouwadge and White River

• District heating with biomass

• 100 km heat diet

• Mush sector conversion

• Bioproduct light manufacturing

• Greenhouses

Project Drill-down

Community Forest Coop

Regional Aggregator

Harvesting Modernization

Export pellet mill

100 km Heat Diet District Heating Combined Heat & Power (Cogen)

Commercial/MUSH conversion

CLT/EW project Light manufacturing bioproduct park

Traditional food/medicines to “market”

Biomass-heated greenhouses

100 km Heat Diet

• 1M+ homes not on NG

• Swap legacy heat for bioheat

• Leverage existing regional infrastructure

• Locally sourced biomass

• Community-scale pellet mill

• Local delivery, installation, support

100 km Heat Diet

Renewable Energies Agency, Germany

Bioheat technologies - residential

Pellet stove

2-20 kWh

Pellet boiler

25-40 kWh

Pellet furnace

25-45 kWh Drolet, Biotech, Caddy appliances shown

X

Thank you!

www.biomassinnovation.ca

Biomass Innovation Centre

@biomasscentre

dawnl@biomassinnovation.ca

francisg@nipissingu.ca