Biomass Standards in the Bioenergy Sector

BIO World Congress on Industrial Technology

Babak Owlam - CSA GroupMontreal, QCJuly 26, 2017

Biomass/Biofuel/Bioenergy Definitions

2

Biomass: material of biological origin excluding material embedded in geological formations and/or fossilized.

Biofuel: solid, liquid or gaseous fuel produced directly or indirectly from biomassSolid biofuel: Solid fuels produced directly or indirectly from biomassBioenergy: energy derived from Biomass

Source: CAN/CSA-ISO 16559:15

CSA Group - Solid Biofuels

• In 2013 CSA decided to develop standards for solid biofuels to respond to demand from industry and government agencies

• An agreement was reached in 2013 between SCC and CSA Group to merge the CSA initiative with Canadian effort under ISO/TC238

• The CSA-ISO Solid Biofuels Standards are voluntary standards

• Objectives of publishing solid biofuels standards: • Biomass to become a commodity fuel that users can buy with confidence of

trouble free operation (e.g. reliable, efficient, clean and safe operation). • Assists industry to develop safer, cleaner, more energy-efficient biomass

conversion processes.

ISO/TC 238 Solid Biofuels

ISO/TC 238 Solid Biofuels

Scope: Standardization of terminology, specifications and classes, quality assurance, sampling and sample preparation and test methods in the field of raw and processed materials originating from arboriculture, agriculture, aquaculture, horticulture and forestry to be used as a source for solid biofuels

CSA Group - solid biofuels publications

CSA Group has adopted and published Standards as the first series of solid biofuels standards, under the general title of Solid biofuels — Fuel specifications and classes

• 17 standards in 2015• 6 standards in 2016• 4 standards in 2017

Why Standards for Solid Biofuels?

Necessary to become a commodity fuel that users can buy with confidence and withthe expectation of trouble free operation.

Benefits:• Facilitate international trade • Enhance adoption of new technologies• Promote public safety and contribute to a more sustainable industry • Minimize emission of pollutants• Facilitate quality assessment of solid biomass resources • Ensure safe handling and storage of solid biofuels• Facilitate efficient permitting of bioenergy systems

Stakeholders:• Solid biofuel producers• End users and consumers• Equipment manufacturers• Testing laboratories• Regulators

Applications:• Residential • Commercial • Industrial

Opportunities for Standards• Moving forward, Canadian fuel and heating equipment standards will need

to be developed (although many international standards exist, there are currently none for the domestic market) due to issues such as:

– Variations in environmental regs between jurisdictions – Inconsistent and non-uniform fuel quality – Lack of policy clarity

• Standards for Biomass Heating Equipment (Standards for Fuel Quality is NEW and NO Equipment Performance in Canada)

– For Improved Performance – For Safe & Reliable Operation – For Saving $$$$

• Continue working closely with the Government and industry focused associations (to write guidelines, best practices)

• Ataullah Khan Mohammed/ InnoTech Alberta• Dennis St. George/ Manitoba Hydro• Joy Agnew/ PAMI• Naresh Thevathasan/ University of Guelph• Sebnem Madrali/ Natural Resources Canada• Stephane Gauthier/ Biovalco Inc.• Victor Cheng/ Alberta Agriculture and Forestry• Babak Owlam/ CSA Group

BQNC Subcommittee Members

• Report on BIOENERGY HEAT MARKET POTENTIAL, SUPPLY CHAIN AND EQUIPMENT SUITABILITY – Assessment of supply chain pathways and business

models – Comparison of delivered energy – Feedstock Grading System

Final report and work plan

Bioheat Installations by Sector (as of March 2017)

Ref. Updating and Expansion of the Canadian Bioheat Database, March 2017 prepared by Torchlight for Natural Resources Canada

Commercial and Institutional Sector>50 kW and < 5 MWth

364 (total) bioheat installations (as of March 2017)

Ref. Updating and Expansion of the Canadian Bioheat Database, March 2017 prepared by Torchlight for Natural Resources Canada

Canadian Bioheat projects by capacity (as of March 2017)

Ref. Updating and Expansion of the Canadian Bioheat Database, March 2017 prepared by Torchlight for Natural Resources Canada

Canadian Bioheat Installations by Solid Biomass Fuel Types

Ref. Updating and Expansion of the Canadian Bioheat Database, March 2017 prepared by Torchlight for Natural Resources Canada

• Alberta Initiatives– InnoTech Alberta Projects– Alberta Agriculture Projects– GOA Initiatives

• Manitoba Initiatives– Biovalco Project– Manitoba Hydro Initiatives

• Saskatchewan Initiatives– PAMI Projects

Current Tasks

Alberta Initiatives

New Regulation in Alberta

Bioenergy/Biomass is part of solution for Alberta energy portfolio due to New Climate Change Leadership Policy

By 2030, coal will disappear:One third replaced with natural gasTwo thirds replaced with renewables

BRIMSBIO-RESOURCE INFORMATION MANAGEMENT SYSTEM

# Landfills or Waste sites Gross Tonnes (2015 Data) Waste Streams 1 Calgary - Spyhill 68,871 MSW, C&DW, Org Waste 2 Edmonton 44,503 MSW, C&DW 3 Calgary - East 43,580 MSW, C&DW, Org Waste 4 Sturgeon 38,665 MSW 5 Grand Prairie 38,202 MSW 6 Red Deer 37,296 MSW, C&DW, Org Waste, Wood waste 7 Northlands Forest Products 32,580 Wood waste 8 Elk point 30,530 Wet Sludge

Municipal Landfill Sites & Volume Estimates

# Region Facility Volume (2007-09 data) dry tonne

Category/ Waste Stream

3 Grand Prairie – Grand Cache Weyco 131 k Lumber, P&P 8 GP - GC Norbord 83 k OSB 10 GP - GC Canadian FP 68 k Lumber 18 GP – GC Foot Hills FP 30 k Lumber 433 k Total 2 White Court Miller

Western 139 k Lumber, P&P

5 WC Blue Ridge 118 k Lumber 14 WC ANC 46 k P&P 303 k Total 1 Athabasca – Fort McMurray Alpac 225 k Pulp & Paper (P&P) 20 Athabasca – Fort McMurray Northlands FP 29 k Lumber 254 k Total 4 Peace River – High Level – La

Crete DMI 120 k P&P

6 PR – HL - LC Tolko 85 k Lumber 19 PR – HL - LC West Fraser 30 k Lumber 235 k Total 7 Hinton – Edson West Fraser 84 k Lumber, P&P 11 Hinton – Edson Sundance 63 k Lumber 16 Hinton – Edson Weyco 33 k OSB 180 k Total 13 Slave Lake – High Prairie West Fraser 56 k Lumber, Veneer 15 SL – HP Slave Lake 35 k P&P 17 SL – HP West Fraser 30 k Lumber 121 k Total 9 RMK – Calgary – Southern AB Sundre FP 80 k Lumber 80 k Total 12 Drayton Weyco 60 k Lumber 60 k Total

Forestry Residue - Regional Volume Estimates

# Region Facility Volume (2007-09 data) dry tonne

Category/ Waste Stream

Lumber Residue 2 White Court Miller

Western 80 k Lumber

3 GP - GC Weyco 94 k Lumber 5 WC Blue Ridge 118 k Lumber 6 PR – HL - LC Tolko 85 k Lumber 7 Hinton – Edson West Fraser 58 k Lumber 9 RMK – Calgary – Southern

AB Sundre FP 80 k Lumber

10 GP - GC Canadian FP 68 k Lumber 11 Hinton – Edson Sundance 63 k Lumber 12 Drayton Weyco 60 k Lumber 13 Slave Lake – High Prairie West Fraser 32 k Lumber 17 SL – HP West Fraser 30 k Lumber 18 GP – GC Foot Hills FP 30 k Lumber 19 PR – HL - LC West Fraser 30 k Lumber 20 Athabasca – Fort McMurray Northlands FP 29 k Lumber 857 k Total

Forestry Residue - Waste Stream Volume Estimates

BRIMS in action - Whitecourt

BRIMS in action – Drayton Valley

Bioenergy Producer Program

• $60M• April 1, 2016 – September 30, 2017• Credit for bioenergy production

– Biofuels– Biogas– Pellets– Electricity and/or Heat (biomass combustion)

• http://aep.alberta.ca/climate-change/programs-and-services/bioenergy-producerprogram.aspx

Bioenergy Producer Program –Heat from combustion

• $0.50 / GJ• 11 facilities• Feedstocks:

– Hog fuel– Kraft black liquor– Wood fibre residuals

54%

7%

20%

7%

12% Biomass-electricityBiomass-heat

Biofuel

Wood Pellet

Biogas-electricity

Bioenergy Producer Program –Heat from combustion

Manning Forest (WF) Manning Peace River

Canadian Forest Products Ltd. Grande Prairie Grande Prairie - Smoky

Ranger Board (WF) Blue Ridge Whitecourt-Ste. Anne Edson Forest (WF) Edson West Yellowhead

Sundre Forest (WF) Sundre Rimbey-Rocky Mountain House-Sundre

Sundre Forest Product LVL (WF)Rocky

Mountain House

Rimbey-Rocky Mountain House-Sundre

Blue Ridge Lumber (WF) Blue Ridge Whitecourt-Ste. Anne Hinton Wood Products(WF) Hinton West YellowheadHigh Prairie Forest Products (WF) High Prairie Lesser Slave Lake

Northland Forest Products Fort McMurray Fort McMurray-Conklin

Tolko Slave Lake Lesser Slave Lake

co-gen facilities (yellow)

CARBON LEVY

-carbon levy in Alberta: $20 in 2017, $30 in 2018

Manitoba Initiatives

Where are we at in Manitoba

Heat45%

Light & Power

20%

Transp.35%

Ref. Petro.40%

Electric 26%

Other2%

Natural Gas32%

• 74% of the energy consumed is imported and non-renewable (transportation & heat).• Approximately 45% of the energy usage is for heat.• Interest in utilizing waste stream & byproducts and readily available low cost biomass growing.

By Use By Fuel

Where are we at in Manitoba

• Coal And Petroleum Coke Ban effective July 2017.• Has led to the developed a 55,000 t/yr biomass fuel market.

• Canada-wide carbon pricing starts in 2018• Leads to $50 per tonne CO2 Eq. taxation by 2022

Purchased Biomass Fuels Option I

• 35 MW potential by 2023/24• Approved Biomass Heating Initiative with

$1 million budget allocation in 2016/17.• Targeting 175 schools, institutions and

public buildings by 2023.• 1 public school and 1 institution willing to

commit capital.• Public Schools Finance Board supportive

and interested.• The Sagkeeng First Nation is keenly

interested, however awaiting formation of the new Manitoba First Nations School System.

Purchased Biomass Fuels Option II

• Biomass Heating Initiative.• Option to meet targets imposed by

Manitoba’s Climate Change and Green Economy Action Plan.

• 550,000 t/yr wood pellet fuel supply.

Recycled/Mixed Hog Fuel

$2.35

Recycled/Mixed Hog Fuel 2" Down

$2.76

Recycled/Mixed Hog Fuel 6" Down

$2.76

Green woodchip $2.37

Green Sawdust $2.37

Biomass$ / GJ FOB

Supplier

Sunflower Hulls $1.80

Oat Hulls $1.23

Wheat Straw Bales $4.75

Saskatchewan Initiatives

• 2030 Coal Shutdown in Alberta• Carbon Levy• Coal & Pet Coke Ban 2017 in Manitoba• Co-firing initiatives in Alberta, Saskatchewan• Renewable Electricity PPA

The above trends suggest evolution of biomass energy markets and implementation of suitable quality grading system for bioenergy applications

SYNOPSIS

Thank you!

Questions?