Supporting Biofuels Production in Canada NRCan Programs and Activities

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Supporting Biofuels Production in Canada NRCan Programs and Activities Jack Saddler, Susan van Dyk, UBC Alex MacLeod, Senior Science And Technology Advisor Office of Energy Research and Development (OERD) Innovation and Energy Technology Sector (IETS)

2 Outline Current Status of Biofuels in Canada Today s Policy Directions International Activities IETS-NRCan Programs NRCan Biojet Fuel Projects

3 Canada s First Generation Biofuels Industry Canada s Renewable Fuel Strategy and provincial mandates Estimated Production levels Bioethanol: 1.75 BL (2016) Biodiesel: 400ML (2016) Real reductions in GHG emissions Created a Canadian biofuels industry Foundation upon which to build second generation/advanced biofuels/ bioeconomy

4 Canada s Next Generation Biofuels Commercial Production Enerkem Alberta Biofuels 38 million litres per year capacity of liquid methanol and ethanol from municipal solid waste Methanol production initiated in late 2015, followed by ethanol in 2017 Ensyn 3 million gallons/year biocrude for heating plant in Renfrew, Ontario - operational Cote Nord in Port Cartier, Quebec 10 million gallon/year biocrude production facility - construction initiated

Policy Directions in Canada The Clean Technology Opportunity 5 Canada's vision for a clean, innovative economy balances both economic growth and environmental protection Supporting a clean growth economy will help Canada take advantage of new global opportunities Canada can dramatically reduce or eliminate carbon emissions via new clean technology solutions Prime Minister Justin Trudeau at COP 21

Pan-Canadian Framework on Clean Growth and Climate Change 6 Plan to grow our economy while reducing emissions and building resilience to adapt to a changing climate Developed collaboratively by the federal, provincial and territorial governments, and in consultation with Indigenous peoples

7 Pan-Canadian Framework on Clean Growth and Climate Change Support Canada s commitment to the December 2015 Paris Agreement Agreement to keep the global temperature increase below 2 degrees Celsius Aims to reduce emissions in support of Canada s target of a 30 per cent reduction in greenhouse gases from 2005 levels by 2030

8 Pillars of the Framework Pricing carbon pollution Measures to further reduce emissions across the economy Measures to adapt to the impacts of climate change and build resilience Actions to accelerate innovation, support clean technology, and create jobs

9 Proposed Clean Fuel Standard Objective - to achieve 30 megatonnes of annual reductions in GHG emissions by 2030 Implementation 2019

The government has made ambitious commitments to support clean technology 10 Early investments in Budget 2016: $82.5M for clean energy R&D and technology demonstration $62.5M for electrical vehicles and alternative fuel infrastructure $50M to develop cleaner oil and gas technologies Going forward: Over $1B over four years to support clean technology, including in natural resources, agriculture and fisheries $2B to establish a Low Carbon Economy Fund $21.9B investment in green infrastructure Clean technologies are key to the Government s approach to promoting sustainable economic growth and will play a critical role in Canada s transformation into a low-carbon economy. Budget 2016

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14 Working with international partners through Mission Innovation Canada s strategic objectives: 1. Double federal government investment in clean energy RD&D over five years from $387M in 2014-15 to $775M by 2019-20. 2. Encourage private sector investment in earlystage clean energy innovation companies in Canada. 3. Increase domestic and international collaboration to advance Mission Innovation goals. Countries are mobilizing to meet this challenge: 23 members, representing over 80% of global public investment in clean energy R&D, currently totaling almost $15B per year. Mission Innovation aims to invest boldly and broadly, including in transformative technologies. First Mission Innovation Ministerial was held in San Francisco, May 31-June 2, 2016, alongside the Clean Energy Ministerial. Seven Mission Innovation Challenges were launched in November 2016. Canada is playing an leadership role in the implementation of Mission Innovation, as a member of the Steering Committee, as co-lead of the Joint Research & Capacity Building and Business and Investor Engagement subgroups and through its participation in the Information Sharing and Communications sub-group.

15 Mission Innovation Sustainable Biofuels Innovation Challenge Objective: to develop ways to produce, at scale, widely affordable, advanced biofuels for transportation and industrial applications Opportunity: to enhance global collaborations that will accelerate performance breakthroughs and cost reductions Canada is a co-lead along with Brazil, China and India CanmetENERGY-Ottawa is the Canadian lead Work plan is currently under development

16 Biofuture Platform Kickstarting a global, advanced bioeconomy Government-led multi-stakeholder platform to promote international coordination on advanced low carbon fuels, biochemicals and biomaterials (bioeconomy). Brazil is the interim facilitator Canada is one of 20 participating countries Canadian lead is the Office of Energy Efficiency Creation of the work plan and vision are currently underway

17 IEA Bioenergy Technology Collaboration Programme International collaborative agreement established in 1978 by the International Energy Agency Aims to improve cooperation and information exchange in bioenergy research, development and deployment 22 member countries and European Commission Participation is coordinated through the Office of Energy Research and Development (NRCan)

18 IEA Bioenergy TCP Canadian Participation Task 32 Biomass Combustion and Co-firing Task 34 Direct Thermochemical Liquefaction Task 39 Commercializing Conventional and Advanced Biofuels from Biomass Task 42 Biorefining in a future BioEconomy Task 43 Biomass Feedstocks for Energy Markets

19 Innovation and Energy Technology Sector (IETS) IETS supports energy innovation through its responsibility to: Fund energy RD&D in Canada (incl. private sector, academia, and government) via a suite of programs (OERD). Manage Canada s national energy laboratories (CanmetENERGY) and energy RD&D experts. Work with key stakeholders to strengthen Canada s energy innovation system. House the Clean Innovation Task Team responsible for delivering a government-wide Clean Innovation Strategy. Vision: Position Canada for leadership in a sustainable, lowcarbon economy by promoting clean technology and innovation to capture clean jobs, market opportunities and strengthen our competitiveness.

IETS is Canada s leading funding organization for clean energy RD&D 20 Office of Energy Research and Development (OERD) The Government of Canada's co-ordinator of energy research and development (R&D) activities under IETS/NRCan. Program of Energy R&D ($38M in FY 2015-16) ongoing Long-term federal interdepartmental program on basic and applied research & pre-demo pilot projects Conducted by federal laboratories with a focus on fossil fuels, electricity, and end-use Clean Energy Fund ($315M over 7 years) sunsetted October 2016 Support development of new technologies to reduce GHGs and other air emissions External large-scale carbon capture and sequestration demos; external small-scale pre-commercial demos in clean energy and renewables, federal clean energy R&D

IETS is Canada s leading funding organization for clean energy RD&D 21 ecoenergy Innovation Initiative ($271M over 5 years) sunsets March 2017 RD&D projects are ongoing but there are no further calls for proposals Support energy technology innovation to produce and use energy more cleanly and efficiently Energy Innovation Program ($82.5M/2 years) supports innovation in the clean energy sector by providing funding for research, development (R&D) and demonstration (collectively, RD&D) projects supporting the Government of Canada s commitment to reduce gas (GHG) emissions, and contribute to Canadian prosperity and competitiveness by advancing clean energy RD&D

22 Funding, Grants and Incentives NRCan Website News calls for funding Current funding programs Provincial grants and financial incentives Other federal funding sources http://www.nrcan.gc.ca/energy/funding/4943

23 OERD RD&D Funding Areas Relevant to Biojet Fuel Optimizing the feedstock supply chain with a focus on sustainability Advancing biomass preprocessing technologies Developing advanced liquid biofuels Integration of bioenergy and bioproduct processes into biorefineries

24 Examples of NRCan funded Biojet Fuel Projects Enhancing the biomass inventory mapping and analysis tool- BIMAT (AAFC, CFS/CWFC and NRC; Lee and Sidders) Sustainable corn stover harvesting practices for cellulosic biofuel production (AAFC; Drury) Upgrading biomass-derived intermediates to advanced liquid biofuels (CE-O; Monnier) Production Of Biojet Fuels From Woody Biomass-Derived Bio-Oils (CE-O, Monnier) funding from CFS Forest Innovation Program Advanced fast pyrolysis processes (CE-O; Gupta and Preto)

Examples of NRCan funded Biojet Fuel Projects 25 Multi-stream pyrolysis of low quality biomass feedstocks (CE-O, NRC, CE-D; Bronson) Optimized pretreatment of lignocellulosic biomass for optimized sugar platform (CE-V; Benali) Development of Innovative materials for the construction of advanced biorefineries (CMAT; Zeng) Lignin to drop-in biojet fuels and chemicals (CRB Innovations Inc.) Biomass-rich waste conversion into drop-in Fuels (Enerkem)

26 Federal Ad Hoc BioJet working group NRCan participation Innovation and Energy Technology Sector (IETS) Canadian Forest Sector (CFS) Office of Energy Efficiency (OEE) Energy Sector (ES)

27 Q&A Office of Energy Research & Development Natural Resources Canada 580 Booth Street, 14 th Floor Ottawa ON K1A 0E4 Canada E-mail: alex.macleod@canada.ca 27

28 Proposed Clean Fuel Standard Winter 2017 - Consultations on the framework and technical aspects of the regulations with multistakeholder consultative and technical working groups Further public engagement to be organized as required (e.g., webinars) Late-2018 - Publication of proposed regulations in Canada Gazette, Part I Mid-2019 - Publication of final regulations in the Canada Gazette, Part II