Past, present and future Industry leaders reflect on what’s next for biomass JIM GREY Chair of Renewable Industries Canada and CEO of IGPC Ethanol Inc The story of the Canadian biofuels sector over the last decade is remarkable. Our industry has existed in Canada for about 30 years, but it was the Federal Renewable Fuels Strategy in 2006 that sparked our growth into a billion-dollar industry providing home-grown, clean-burning fuels to Canadians. Today, the contributions of the biofuels sector are focused primarily on achieving substantial reductions in greenhouse gas (GHG) emissions in the transportation sector. However, 10 years ago, biofuels were discussed primarily in the context of agriculture. From the beginning, the industry recognized its role within Canada’s circular economy, directly supporting the agricultural sector by providing a stable market, while continually creating environmentally sustainable economic growth in rural communities right across the country. This confidence and commitment from the agricultural community has built an industry in Canada that generates $3.5 billion worth of annual economic activity and has created over 14,000 jobs. Ethanol production for 2016 was 1.7 billion litres, with an estimated sales value of $1.1 billion. As we enter our second decade as an established industry the future looks bright. Today’s governments are developing a suite of policy mechanisms that will directly impact the renewable fuels sector for the next decade and beyond. In December, the Canadian federal government announced the details of its national Clean Fuel Standard (CFS), which aims to eliminate 30 megatonnes of GHG emissions annually by 2030. This targeted reduction will begin with liquid fuels, creating a significant opportunity for biofuels. The federal CFS also comes at a time when Canada’s provinces have been demonstrating impressive leadership on driving increased use of biofuels. Canada’s five most populous provinces — Ontario, Quebec, British Columbia, Alberta and Manitoba — have embraced or are in the midst of exploring progressive approaches to promoting enhanced use of clean fuels either through increasing biofuel mandates or new low carbon fuel policies. Ontario, Canada’s largest province, will increase ethanol content in gasoline from five to 10 per cent. There is still work to be done, but with a combination of a solid foundation, strong domestic industry and ambitious GHG reduction targets being planned across the country, Canada’s biofuels industry can expect to continue delivering good news for years to come. JOHN SWAAN Original founder of PFI Pellet Flame, and co-founder of FutureMetrics It has only been about 25 years since the Canadian pellet industry started. But its early days set the foundation for today’s global leadership. The early to mid-1990s saw the establishment of B.C.’s early wood pellet producers. They started in response to the fledging demand for residential heating pellets in the Pacific Northwest; primarily in the Seattle region. These early entrepreneurs included the wood pellet pioneering companies that still exist today: PFI Pellet Flame (now known as Pacific BioEnergy Corporation), Pinnacle Pellet (Pinnacle Renewable Energy), and Princeton Co-Gen. Soon to follow was Armstrong Pellet. In Eastern Canada, also during the 1990s, early producers like Energex, Lauzon and Shaw Resources established and began production to meet the Northeast U.S.’s developing residential heating market. 1996 saw the formalization of the first wood pellet association in Canada, organized by the original four wood pellet producers in B.C.: PFI Pellet Flame (I was the original association director), Pinnacle Pellet (Jim and Rob Swaan), Princeton Co-Gen (Doug*, Dean, and Gary Johnston), and Armstrong Pellets (Roger Mushaluk). The BC Wood Pellet Fuel Manufactures Association became the Wood Pellet Association of Canada (WPAC) in 2006. WPAC, under the leadership of executive director Gordon Murray, has become an influential institution and a champion of for the Canadian and global wood pellet industry. It has been an amazing 20 plus years since the Canadian pellet industry’s early days. Canada’s wood pellet producers have become world leaders in production excellence, safety, and shipping standards. Canada continues to be globally respected for the sustainable management of its forest resources. In 2018 Canada’s wood pellet exports are expected to exceed 2.5 million tonnes; and significant growth in the industry is possible as market demand grows. Growth in the Canadian pellet industry is always bound by the constraint of maintaining perpetually renewing forest resources. Industrial wood pellet markets will continue to grow. The world is still heavily reliant on coal, but the effects of climate change are becoming increasingly “in-your-face”. As the next decade unfolds, the use of sustainably produced pellet fuel to replace coal will spread beyond the current markets. Canada started the pellet export industry and Canada will continue to be a world leader in an industry that is an important part of the solution for a low-carbon future. The next 25 years will be an exciting time for this industry and I am proud to have been one of the pioneers that set the stage. SEPTEMBER/OCTOBER 2018 14 Canadian BIOMASS
Canadian Biomass September-October 2018: Page 14
