Toso Bozic P.Ag Bioenergy specialist Alberta Agriculture and Forestry

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1 Toso Bozic P.Ag Bioenergy specialist Alberta Agriculture and Forestry

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3 Alberta Climate Leadership Plan Carbon Levy Rates Carbon Levy is the key tool that will help pay for a more diversified economy

4 Revenues and Reinvesting in Economy Over the next 5 years the program is projected to collect $9.6 billion, which will be fully reinvested in Alberta s economy.

5 Revenues and Reinvesting in Economy $6.2 billion will be spent on diversification of our energy economy and creating jobs, including: Ø $3.4 billion for large scale renewable energy, bioenergy and technology Ø $2.2 billion for green infrastructure like transit Ø $645 million for Energy Efficiency Alberta, a new provincial agency that will support increasing energy efficiency for homes and businesses

6 Revenues and Reinvesting in Economy - continue $3.4 billion will provide support for households, businesses and communities adjust to the carbon price, including: Ø $2.3 billion for consumer rebates to help lower- and middle-income families Ø $865 million to pay for a cut in the small business tax rate from 3% to 2% Ø $195 million to assist coal communities, Indigenous communities and others with adjustment

7 Large Industrial Emitters Under Specified Gas Emitters Regulations(SGER), facilities that emit 100,000 tonnes or more of greenhouse gas emissions (GHG) are required: to annually reduce their site-specific emissions intensity by 15% this increases to 20% per cent as of Jan 1, After 2017, the province will transition to product and sector-based performance standards

8 Large Industrial Emitters There are 4 ways facilities can comply: Ø make improvements at their facility to reduce emissions Ø use emission performance credits generated at facilities that achieve more than the required reductions Ø purchase Alberta-based carbon offset credits Ø contribute to Alberta s Climate Change and Emissions Management Fund (Fund)

9 Exemptions the use of heating fuels on sites subject to the Specified Gas Emitters Regulations (SGER)/performance standards regime natural gas produced and consumed on site by conventional oil and gas producers (until Jan 1, 2023) industrial exemptions in cases where fuel is used in industrial processes but not combusted purchases of fuel on-reserve by eligible First Nations individuals and bands for personal and band use marked gasoline and diesel used by farmers in farming operations biofuels, including bio-methane, biodiesel and ethanol inter-jurisdictional flights fuel sold for export

10 Rebates

11 Alberta Electricity Portfolio

12 Historical Price of Electricity

13 Renewable alternatives to replace AB coal

14 Wood Biomass Power Plants

15 Key things for any biomass project It is commodity Who own it Where decisions are made Secure long term contract

16 Where biomass may come from# 1 Crown forest operation All Crown forest in AB is under FMA or other agreements forest industry are owners of forest slash and timber You have to deal with industry to obtain the biomass

17 Where biomass may come from# 2 Private forest woodlots Over 6 million acres is under private forest in Alberta. They currently supply around 2 million tonnes of wood to forest industry You have to deal with thousands of landowners to obtain the biomass

18 Where biomass may come from# 3 Landfills and waste management facilities Over 300 landfills in Alberta You have to deal with various landfills operators and owners to obtain the biomass

19 Where biomass may come from# 4 railway ties and oil mats Millions oil mats are around one mat is around 2000 lb Railway ties thousands of them replaced every year railway tie is around 200 lb

20 Where biomass may come from# 5 Agriculture biomass Millions of tonnes of various crop by product dealing with livestock competition and thousands of farmers to get long term contracts

21 Where biomass may come from- # 6 Wood Pellet from BC BC supply to subsidized EU market Can it be switched to AB market under long term contract?

22 Summary New Climate Change Leadership Policy is in place By Jan 1, 2017 most of policy and details should be in place Bioenergy/Biomass is part of solution for Alberta energy portfolio Diversifying energy portfolio will diversify Alberta economy and the policy is sending a signal to investors in green energy There is plenty of biomass available in Alberta Securing wood waste/biomass can be challenging Yes we (Albertan s) can do this and not just look to other parts of the country and the world are doing it

23 Thank you!! Man's mind, once stretched by a new idea, never regains its original dimensions. - Oliver Wendell Holmes

24 Contact and more information Toso Bozic P.Ag Phone : (780) toso.bozic@gov.ab.ca