WHAT THEY SAID We asked representatives from three Canadian industry associations whether they thought 2016 would be a good year for their respective sector. Here is what they said: JIM GREY CHAIR, CANADIAN RENEWABLE FUELS ASSOCIATION DR. DONALD L. SMITH CEO AND SCIENTIFIC DIRECTOR, BIOFUELNET 2016 is likely to be a positive year for biofuels in Canada, especially towards the latter part of the year. Although the price of oil is likely to remain low, we expect that there will be improved policy tools that support initiatives and industries that aim to mitigate climate change. GORDON MURRAY EXECUTIVE DIRECTOR, WOOD PELLET ASSOCIATION OF CANADA 2016 will be a year of opportunity for Canada’s renewable fuels industry. We are well positioned to support provincial and federal governments as they develop cap and trade systems and work to meet aggressive greenhouse gas emission reduction targets stemming from COP21. Our products already reduce carbon emissions by 4.2 megatonnes in Canada every year – the equivalent of removing nearly one million cars from our roads – and more can be done. I am optimistic about 2016 for the wood pellet industry, although a positive start to the year will depend on whether or not it gets colder in Quebec and Atlantic Canada. With lots of new volume coming online in 2015 and the possibility of lots of new energy projects needing pellets in both Europe and Asia, 2016 could be a really good year for Canadian pellet exports. capacity for the industry will come online in the year ahead. THE TERRITORIES The Northwest Territories is seeing a surge in biomass activity thanks to strong support from the government. There are now 22 biomass heating projects in the NWT, with additional projects being built across the territory. The use of biomass is providing an approximate 35 per cent energy savings over traditional energy sources such as heating oil and diesel. The recent formation of a biomass association in the NWT is helping to drive biomass and bioenergy initiatives forward. While logistics constraints still plague the region, the first local pellet operation is in the design phase, which should help to grow pellet supply even into difficult-to-reach parts of the territory. INDUSTRY OUTLOOK Japan and a potentially cold year in Italy could also open up new opportunities for pellet producers. In all reality, the success of 2016 will be dictated by who steps to the plate following COP21 and what those efforts to reduce emissions look like. Should Canada follow through in dropping emissions nationwide, the domestic future of the biomass industry, including wood pellets, bioenergy, biofuels and biochemicals, could reach heights not yet seen before. • Efficient drying of biomass COP21 in Paris provided some much needed optimism for the biomass industry in Canada going into 2016. A federal government focused on climate change initiatives is a welcome sign for the industry, and in turn, will hopefully lead to new policy development. The raising of ethanol and biodiesel blend percentages, financial support for community growth of bioenergy and district heat assets and investments in second and third generation biomass for coal replacement would be logical places to start. We should see some positive development in provincial policies as well. Alberta’s commitment to focus on renewables should provide bio-friendly policy development in 2016. In Ontario, we could see incentives thrown the way of an investor that can copycat or mimic the fuel provided to OPG by Arbaflame. In B.C., it looks like the work put forward by WPAC and others could lead to legislation that helps make more fibre available for biomass producers. There are also positive signs that there will be more demand for pellet exports. For starters, the conversion of Lynemouth in the U.K. means new demand for upwards of 1.6 million tonnes of pellets per annum. Progress made with sustainability targets in the Netherlands, market access work done in South Korea, a slew of energy projects needing wood pellets in progress in Stela low temperature belt dryer • 93 years of history, 45 years of experience in manufactoring drying plants • more than 450 belt dryers in more than 60 countries all over the world in the most various sizes • lowest emissions rates, energy-saving air technology • dryers for produktion capactiy of 5.500.000 t/a pellets supplied • no need of wet electrostaticfilters (WESP) to achieve low emisson values Stela Laxhuber GmbH Öttingerstr. 2 D-84323 Massing Tel. +49 8724/899-0 E-Mail: [email protected] www.drier.com Canadian BIOMASS 17
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