CanBio/NRCan survey of the bioenergy industry

October 2, 2014, Ottawa, Ont. – Canada’s
bioenergy industry is growing and contributing to the replacement of many jobs
lost in small communities in traditional industry sectors. The industry is also
diversifying from strictly energy products to higher-value bio-materials and
bio-chemicals.

In 2013
CanBio and Natural Resources Canada (NRCan) undertook a nationwide survey of
Canadian bioenergy plants and operations to understand the growth and structure
of the emerging industry. The survey targeted production facilities for
ethanol, biodiesel, pellets, bio-heat, bio-power, bio-gas and co-generation and
built on the results of previous surveys.

Policy: The
Government of Canada and provincial governments have implemented an array of
policies to support the bioenergy industry. B.C, Quebec, P.E.I. and the Northwest Territories have
emphasized biomass heat and bio-power. Ontario has moved ahead strongly in
bio-power and biogas. Federal programs have played a large role in the
development of bio-fuels.

Pellets:
Installed production capacity grew by 61 per cent in 2010-12 but uncertain
markets led to a small capacity decline in 2013 with the closure of three
plants. B.C. is
the undisputed industry leader focused on exports with Quebec taking second
place emphasizing smaller local markets and smaller plants.

Community heat:
Until 2000, only five biomass heat projects
existed in Canada. By 2013 the number of systems had grown to 109, led by B.C.
and the N.W.T.
Ontario had only three operations in 2012 but 11 by 2013. Nationwide, 33
additional bio-heat installations are under construction, 14 of which are in P.E.I.
Quebec has over 30 in the planning stages.

Cogeneration:
In 2013, 39 operating biomass cogen plants at pulp and paper mills in Canada
were identified with combined electrical capacity of over 1,500 MW. Independent
power producers provide an additional 540 MW of electrical capacity and 150 of
thermal capacity.

Ethanol:
Capacity in ethanol from corn and grain has increased from 411 million litres
in 2005 to 1,826 million litres from 14 plants, nearly all of which are
producing at full capacity. Four pilots and four commercial demonstration
plants for ethanol from lignocellulosic feedstocks are expected to come on
stream by 2016.

Biogas: By
2013, Ontario has become the definite leader in Canada for on-farm anaerobic
digestion installations with 37 of Canada’s 77 operating facilities. Six
additional facilities are under construction in Ontario. Quebec is in second
place with 14 plants but with twice as much capacity as Ontario based on five
large facilities.

Torrefied
wood: Two Canadian companies are leading the way in Canada. In Quebec, Airex is
building a commercial demonstration unit in Montreal that will lay the
groundwork for commercial plants. In B.C.,
Alterna Energy is building a plant capable of supplying 47,500 tonnes of
torrefied pellets annually.

Pyrolysis
oil: Canada was once the undisputed world leader in pyrolysis oil production,
with Ensyn and Dynamotive leading the way. Ensyn still remains a major player
but development has spread worldwide with Metso building the new largest plant
in the world in Finland and Empyro starting construction on a plant in the
Netherlands.

The full
survey will be released by CanBio following the CanBio Annual Conference in
Thunder Bay (September 10/11, 2014).