Renewable Energy Use in Transportation June 20, 2005 Manitoba s Renewable Energy Policies and Directions Robert Parsons, MBA, P.Eng. Hydrogen Specialist Manitoba Energy Development Initiative roparsons@gov.mb.ca (204) 945-6077
Energy Development Initiative (EDI) EDI was initially created in 2001, and currently combines in one location: - Energy Policy; - Energy Economic Development; and - Climate Change Previously many different departments worked on these files but nothing was coordinated EDI is housed in the Department of Energy, Science & Technology
Renewable Energy Priorities EDI is working with partners on a series of relevant renewable energy-related priorities: 1 New generation hydroelectric developments in Manitoba s North, in particular linked to potential export power sales 2 Wind power development 3 Biofuels, including ethanol, biodiesel, and methane 4 Hydrogen Additional priorities include: ground-source heat pumps, efficiency, GHG trading, green design standards, community programs (C4), impacts & adaptation
Common Features of Priorities Focus on taking advantage of Manitoba s diverse renewable resources, particularly to displace imported fossil fuels Net outflow of $1 to $2 billion/yr for fossil fuels Focus on obtaining economic development benefits for Manitobans Use of multi-stakeholder input/coordination bodies to provide overall directions Portfolio mix of opportunities: Some near term (e.g. ethanol) Some longer term (e.g. hydrogen)
NEW GENERATION HYDRO
New Generation Hydroelectricity Major source of renewable electricity with three new projects by Manitoba Hydro, representing 2,000+MW: Wuskwatim 200 MW with 85% capacity factor, yielding ~1.5 TWh/yr Conawapa 1,250 MW with 65% capacity factor, yielding ~7.0 TWh/yr Keeyask (Gull) 620 MW with 80% capacity factor, yielding ~4.4 TWh/yr
Current Status Wuskwatim is furthest advanced: Project has completed environmental review Awaiting upcoming referendum by Nisichawayasihk Cree Nation project partners Anticipated in-service date of around 2011 Project justification based on export sales, primarily to the U.S. Other projects, particularly Conawapa, linked to ongoing export power sale discussions
WIND
Why Wind in Manitoba? New and diversified source of renewable energy: Manitoba has a world-class wind resource Measure of protection against cyclic drought conditions and associated financial losses Rapidly developable source of electricity for near-term exports New economic development opportunity for rural communities Basis for high-tech supporting manufacturing sector
St. Leon Project Characteristics 99.5 MW, yielding ~0.4 TWh/yr One of Canada s largest projects 63 turbines Turbines Rotor diameter of 82 m (>747 wings) Hub height of 80 m Benefits Investment of ~$210 million 300 construction jobs 10+ operation/maintenance jobs Landowner revenue per turbine First turbines installed and operating Developing Wind Rush in rural Manitoba 1.65 MW wind turbine as used at St. Leon
St. Leon Site
The Future is Bright for Manitoba s Wind Industry Winds of Opportunity Clean Power for Manitoba s Future The Manitoba Government s Plan for Future Development of Wind Power O C T O B E R, 2 0 0 4 Manitoba plans to develop up to 1,000 megawatts (MW) of wind within approximately the next decade. The exact amount of wind that will be integrated will depend upon ongoing technical and economic feasibility assessments. Manitoba will also set aside approximately 50 MW to support the development of smaller wind projects. Note: 1,000 MW with 40% assumed capacity factor yields ~3.5 TWh/yr
BIOFUELS
Biofuels Biofuels include ethanol, biodiesel and methane (from anaerobic digestion): Anaerobic digestion more focused on waste and nutrient management - theoretically usable for vehicle fuel but not a practical priority Biofuels featured in The Economist (May 14 th ) Benefits of green fuel and enhanced fuel security, but increasingly competitive cost Primary focus for biofuels in Manitoba: Rural economic development and diversification Alternative uses for agricultural products
ETHANOL
Ethanol - Historic Leadership Ethanol is a renewable, highoctane, oxygenate fuel: Co-product of cereal grain fermentation process, with high protein content feed (DDG) also a co-product Ethanol from cellulose (e.g. wood or straw) still developing and may be used in future Manitoba s firsts in Canada: First province to have incentive for ethanol-blended fuel First fuel ethanol plant - Husky (Mohawk) operating in Minnedosa since early 1980s Ethanol Brochure from 1981
Ethanol Recent Background Ethanol Advisory Panel appointed to consider ethanol and consult with Manitoba stakeholders Report issued in December 2002 Manitoba Ethanol Office established in 2003 Biofuels Act passed in 2003, but not yet proclaimed: Mandate for 10% ethanol (E10) in 85% of gasoline fuel 8 year tax preference
Ethanol - Current Status Near-term opportunity: Economic and environmental benefits for Manitoba Potential for 140 to 160 million Litre annual domestic production for Manitoba: Save $55 million/yr on imports High quality feed co-product Additional export potential Four projects now being considered in Manitoba Hope to have ethanol announcement this summer
Ethanol Further Actions Communications: Series of info documents Targeted R&D by EDI: DDG use for food (FDC) DDG drying (U of M) DDG for hog feed (U of M) DDG markets (Consultant) Leadership on E85: First E85 fueling station in Western Canada opening shortly in Winnipeg
Ethanol Further Activity Major recent research funding announcement by Husky Energy at the University of Manitoba New Husky Biofuel Research Fund focused in two primary areas: Feedstock development Process efficiency improvements through advanced bioengineering
(Photograph Courtesy of Manitoba Hydro) BIODIESEL
Biodiesel - Current Status Report of the Biodiesel Advisory Council issued in February 2005 Council is a non-government body and made a series of recommendations Government response to report is expected in a few months Ernie Doerksen will talk more about biodiesel later today
Biodiesel Further Actions Manitoba recently received $2 million for community-based biodiesel initiatives: Federal Opportunities Envelope funding Biodiesel identified as the single most effective measure to reduce GHGs from diesel vehicles Manitoba Hydro now incorporating biodiesel in fuel for their heavyduty vehicle fleet
HYDROGEN
Hydrogen Opportunities Report Released in April 2003 First of kind in Canada Identified series of priority actions for province as a whole Has set stage for follow-up activities
Hydrogen Priority Actions Manitoba s Hydrogen Steering Committee in its report originally identified five priority actions, with a sixth more recently added: 1. Buses and refueling demonstrations 2. By-product hydrogen fuel cell demonstration 3. Hydrogen Centre of Expertise 4. Manitoba Hydro Dorsey on-site generator 5. MOU with Iceland 6. Permanent refueling station
HHICE Transit Bus Demonstration Demonstration completed in March 2005 using novel hybrid technology and involving more than 14 organizations separate public report. HHICE Bus in transit service in Winnipeg Temporary refueling at Red River College
Hybrid Fuel Cell Bus Project is led by Hydrogenics and announced by Premier Doer in 2002. Winnipeg demonstration of bus is planned for the spring of 2006. The most advanced and efficient fuel cell-powered bus in the world
But How do these various initiatives fit together? particularly regarding energy use in transportation?
Changes in Vehicles and Fuels Integrated (Grid-Connected) Conventional Energy Clean Energy Matrix illustrates two major axes of change Isolated
Rough Mapping of Possible Options Integrated (Grid-Connected) Conventional Energy Clean Energy Current conventional vehicles start out way down here Gasoline ICE Isolated
Rough Mapping of Possible Options Integrated (Grid-Connected) Conventional Energy Clean Energy Immediate near-term moves to clean energy using biofuels Gasoline ICE Biofuel ICE Isolated
Rough Mapping of Possible Options Integrated (Grid-Connected) Battery-based Vehicle Gasoline PHEV Conventional Energy Clean Energy Gasoline Hybrid Moves toward more electric vehicles Gasoline ICE Isolated
Rough Mapping of Possible Options Integrated (Grid-Connected) Battery-based Vehicle + Combinations and other advanced technologies Gasoline PHEV Hybrid H2 Fuel Cell Pure H2 Fuel Cell Biofuel PHEV Conventional Energy Clean Energy Gasoline Hybrid Biofuel Hybrid Gasoline ICE Biofuel ICE Isolated
General Overall Trends Integrated (Grid-Connected) Conventional Energy General Overall Trends Clean Energy Isolated
But Many Paths to Get There Integrated (Grid-Connected) Conventional Energy Clean Energy Isolated
How Do They Fit Together? Concurrent overall trends towards: Cleaner transportation fuels; and More electrified vehicles having greater interconnection to the grid G2V, PHEVs and V2G are popular topics in the literature today Many paths leading in the same directions: Uncertainty regarding technology winners No guarantees of success Today these different paths are more complementary in nature than competitive
How Could They Fit In? (Photograph Courtesy of Red River College) Plug-in Hybrid Electric Vehicles
Potential Benefits of PHEVs Fuel costs - Manitoba has the highest ratio of retail gasoline-to-electricity cost in North America, so this could make sense GHG reductions - Shift from gasoline to electricity produces 100% GHG reduction Plug-in culture/infrastructure - Manitobans already plug-in their cars and a nascent smart recharging network exists Interesting future match to wind - PHEVs require only energy from grid, while wind can be rapidly deployed to meet growth
Hydrogen is the Model for PHEVs Hydrogen and PHEVs are related Both involve electrification of vehicles Both involve advanced energy technologies Both involve a cross-over of energy and transportation applications Both have complementary niches: Heavy duty buses for Hydrogen Light duty commuter cars for PHEVs Both have no guaranteed outcome
Hydrogen is the Model for PHEVs Manitoba has an already well-developed hydrogen process: Appropriate umbrella to consider PHEVs as an alternate advanced energy technology Appropriate multi-stakeholder entity (Hydrogen Steering Committee) for overall guidance Manitoba s Hydrogen Steering Committee has already taken leadership to act as the provincial coordinating body for PHEVs as an advanced energy technology
CONCLUSIONS Manitoba is pursuing portfolio of renewable, clean energy pathways, including: Hydroelectricity; wind; biofuels; hydrogen Manitoba is rapidly becoming recognized as a world leader and hub for renewables Developing technology and other expertise to capitalize on benefits Renewable energy has strong benefits to the environment, but more importantly represents a bright economic future for Manitobans
QUESTIONS? Reports cited in presentation and more information available on the internet: http://www.manitobaenergy.ca