The Evolution of the Global Bioeconomy and Implications for Manitoba
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1 The Evolution of the Global Bioeconomy and Implications for Manitoba Matthew McCandless Manitoba Green Economy Consultation Winnipeg, MB December 3, The International Institute for Sustainable Development
2 Outline The bioeconomy First generation ethanol The bioeconomy of the future in Manitoba
3 Click to edit Master text styles Click to edit Master text styles Click to edit Master text styles
4 Click to edit Master text styles Click to edit Master text styles Click to edit Master text styles
5 The Bioeconomy is an economy where the basic building blocks for industry and the raw materials for energy are derived from plant/crop-based (i.e. renewable) sources (Iowa S U, Bioeconomy Inst.). all economic activity derived from scientific and research activity focused on understanding mechanisms and processes at the genetic and molecular levels, and its application to industrial processes (Wikipedia). the aggregate set of economic operations in a society that use the latent value incumbent in biological products and processes to capture new growth and welfare benefits for citizens and nations (OECD). an economic system in which the nation s biological resources (e.g. forests and farmlands) provide: Renewable energy, chemicals, materials Environmental values (healthier air, water and soils, GHG reductions) Sustainability includes environmental, economic and social considerations (Biocap).
6 The Bioeconomy is Image source: Research Council of Norway; OECD
7 The Bioeconomy Today Over $2 trillion Investment in the bioeconomy is over $60B, split evenly between public and private investment. The US is the largest public investor. Private investment is significantly higher than public investment in the EU. Canada s bioeconomy is among the top ten in the world, but is the second greatest per capita. Source: OECD 2009
8 Canada s Bioeconomy Source: Pellerin W and Taylor DW 2008; Industrial Biotechnology, 4( ). Source: Casey 2012, Biotechnology focus Canada
9 Biofuels in Canada Canadian biofuel production capacity 1824 Ml ethanol 348 Ml biodiesel Uses 10% of Canadian grain harvest
10 Biofuels in Canada Canadian biofuel production capacity 1824 Ml ethanol 348 Ml biodiesel Canadian biofuel demand 2200 Ml ethanol 600 Ml biodiesel Biofuel imports from the US account for 41% of Canadian consumption
11 Public support Stage of production R&D Business planning Plant construction Production Price support Distribution Consumption Grants and low-interest loans Subsidy types Grants for market and feasibility research Grants and low-interest loans Fuel tax exemption, subsidies to purchasers Mandated blending requirements Grants for storage and distribution infrastructure Tax-breaks for purchase of biofuel-consuming vehicles, government procurement programs Province Ethanol Year Biodiesel Year British Columbia 5% % 5% Alberta 5% % 2011 Saskatchewan 7.5% % 2012 Manitoba 8.5% % 2009 Ontario 5% Quebec 5% 2012* - - CANADA 5% % 2011 (source data: CRFA 2011; Biofleet 2011)
12 Public support Stage of production R&D Business planning Plant construction Production Price support Distribution Consumption Grants and low-interest loans Subsidy types Grants for market and feasibility research Grants and low-interest loans Fuel tax exemption, subsidies to purchasers Mandated blending requirements Grants for storage and distribution infrastructure Tax-breaks for purchase of biofuel-consuming vehicles, government procurement programs Province Ethanol Year Biodiesel Year British Columbia 5% % 5% Alberta 5% % 2011 Saskatchewan 7.5% % 2012 "The ethanol and oil industries do not need nor do they deserve subsidies that are costly to American taxpayers, harm our environment and increase the cost of the food we eat," said Senator Ben Cardin Manitoba 8.5% % 2009 Ontario 5% Quebec 5% 2012* - - CANADA 5% % 2011 (source data: CRFA 2011; Biofleet 2011)
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14 Manitoba biomass
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18 Agricultural Wetland Riparian Total Up to 5800kt Up to 8300 kt Up to 8 kt 14,900 kt Agricultural Industrial Total 60 kt Up to 200 kt 260 kt
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20 Biorefining network Biorefineries can address multiple priorities Reducing GHG emissions Improving water quality Fostering technological innovation Boost rural economies Reduce energy imports
21 Water storage Riparian Biomass Reduced Nutrients Nutrients diverted from watershed to biorefinery
22 Biorefining network Optimal location of biorefineries is essential for ensuring the feasibility and sustainability of industry Feedstock procurement accounts for 35% to 50% of cost of cellulosic ethanol Optimal scale of biorefinery is important factor
23 Spatial optimization for biorefining in MB
24 Spatial optimization for biorefining in MB?????
25 Summary The 6 th wave of innovation Canada has the second largest bioeconomy per capita Bioeconomy is growing more rapidly than other sectors Lessons from First Generation ethanol Foster sustainability Manitoba has vast quantities of biomass Priorities need to be set to ensure maximum benefit
26 Thank You! Image: Organic Food Council of Manitoba International Institute for Sustainable Development Head Office 161 Portage Avenue East, 6 th Floor, Winnipeg, Manitoba, Canada R3B 0Y4 Tel: +1(204) Fax: +1(204) Website: The International Institute for Sustainable Development
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