Can Biomass Play a Role in Reducing Greenhouse Gas Emissions from Canada s Oil Sands?

Transcription

1 June 13, 2017 EUBCE 2017 Stockholm, Sweden IBO.12.4 Can Biomass Play a Role in Reducing Greenhouse Gas Emissions from Canada s Oil? Jamie Stephen, PhD Managing Director, TorchLight Bioresources Warren Mabee, PhD Queen s University & TorchLight Bioresources Heather MacLean, PhD University of Toronto & TorchLight Bioresources Joule Bergerson, PhD University of Calgary 1

2 Oil Background 1. Canada is a large oil (and energy) exporter 2. Canada is the world leader in biomass availability per capita 3. The oil sands have a GHG intensity 15-20% higher than conventional crude 4. Biomass can be used to reduce oil sands GHG emissions by >20% 5. Biomass in oil sands operations is more efficient than conversion to transportation biofuels 2

3 Energy Production in Canada 5,466,000 GWh(470 Mtoe) Carbon-based: 407 Mtoe 3

4 Energy Production in the EU-28 8,967,000 GWh(771 Mtoe) Carbon-based: 461 Mtoe 4 (14x population)

5 Oil Background Consumption / Production EU-28 Gross Consumption (TPES) = 200% of Production Gross/Net Exports = (1417/884) Mtoe TPES per capita = 3.1 toe Canada Gross Consumption (TPES) = 60% of Production Gross/Net Exports = 267/185 Mtoe TPES per capita = 7.9 toe 5

6 Per Capita GHG Emissions Oil Background t CO 2 e/pp Sweden EU-28 Canada Alberta 6

7 Oil Background Canada s Area Comparison: Canada = M km 2 Europe = M km 2 EU = M km 2 Sweden = M km 2 Canada has 8% of the world s forests 92% publicly owned ~40% of world s certified sustainable forests are in Canada 7

8 Oil Background Canada s Annual allowable cut in Canada ~220 Mm 3 (110 M bdt) Energy content of 565,000 GWh 0.2% of forested land harvested each year Largest per capita cereals producer 36 M ha of cropland (size of Germany) Third globally for arable land per capita Bioenergy = 5.5% of TPES (EU-28 = 8.1%) Wood pellet production > 3 Mt 8

9 Oil Background Shifting the Bioenergy Paradigm Bioenergy will NOT replace Canada s oil, gas, and mineral industries Improve environmental performance of resources Enable market access for other resources Canada has different drivers for bioeconomydevelopment than the U.S. or Europe Energy security? Job creation in resources? Perception of limited commitment to environment Liberal Government 18 months in power Pipelines, market access, carbon pricing, CFS Large carbon-based infrastructure 9

10 Canada s Oil 10

11 Oil Background on Canada s Oil Canada has the world s 3 rd largest oil reserves: 173 B bbl Ultimate potential is 315 B bbl Oil sands are 97% of Canada s proven reserves Production: 2.3 M bpd in 2014 to 4 M bpd in 2024 World = 94 M bpd CDN Economic impact 2010 to 2035 forecast: $2.1 trillion Contribute >$750 B to government revenue ( ) 2014: 0.5 EJ/yrof natural gas 11

12 Oil Oil Terms Bitumen viscous mixture of hydrocarbons Diluent used to reduce viscosity of bitumen Dilbit blend of bitumen and diluent Upgrading convert bitumen into a crude oil Synthetic Crude Oil (SCO) upgraded bitumen Synbit blend of bitumen and SCO Dilsynbit blend of bitumen, diluent, and SCO Surface recovery mining of oil sands (20% of resources) In situ recovery in place recovery of bitumen (80% of resources) Steam Assisted Gravity Drainage (SAGD) common In situ method

13 Background on Canada s Oil Oil 13

14 Oil Background on Canada s Oil Only 20% of oil sands recoverable using surface mining ~50% of recovery is In situ and main source of growth ~55% of bitumen upgraded to synthetic crude oil in Alberta but forecast to drop to 20% by 2026 Bitumen must be blended with a diluent (e.g., natural gas condensate) to pipeline 14

15 Well-To-Refinery GHG Emissions

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18 Oil Alternative Approach to Cellulosic Ethanol Liquid Biofuels ThermalBioenergy & Biohydrogenin Oil 300 L EtOH/bdt(200 L gasoline) 1450 L SCO/bdt(gasoline cut= 650 L) CHP for internal demand CHP for In situ recovery 33% energy yield to ethanol 80% (or more) thermal efficiency Electricity exports? Displace coal vs. gas? 80% GHG from CDN baseline 90% GHG Well-to-Refinery ~0.5 t CO 2 e/bdt Thermal: ~1.0t CO 2 e/bdt Low carbon fuel standard: reduce life cycle GHG emissions by 20% from 100 g CO 2 e/mj fuel baseline from 1 BL Cellulosic ethanol: 1.1 M bdt Thermal bioenergy: 500 k bdt 18

19 Alberta Electricity Pool Price Facilitator Absender Titel TT.MM.JJJJ Seite 19

20 Alberta Wholesale Gas Price Facilitator Absender Titel TT.MM.JJJJ Seite 20

21 Biomass & Oil Oil Background Fort McMurray Wildfires B in costs 590,000 ha burned (>2x size of Luxembourg) 21

22 Oil Background 1. Canada is a large oil (and energy) exporter 2. Canada is the world leader in biomass availability per capita 3. The oil sands have a GHG intensity 15-20% higher than conventional crude 4. Biomass can be used to reduce oil sands GHG emissions by >20% 5. Biomass in oil sands operations is more efficient than conversion to transportation biofuels 22

23 June 13, 2017 EUBCE 2017 Stockholm, Sweden IBO.12.4 Tack så mycket! Can Biomass Play a Role in Reducing Greenhouse Gas Emissions from Canada s Oil? Jamie Stephen, PhD Managing Director, TorchLight Bioresources E/ jstephen@tlbio.com T/ W/ torchlightbioresources.com Warren Mabee, PhD Heather MacLean, PhD Joule Bergerson, PhD 23