Promoting biomass energy

A number of important initiatives are under way at government, utility and industry levels to encourage the development of biomass energy in Canada.

Government programs

Government policies and incentives can play an important role in encouraging the adoption of biomass energy. These can take the form of:

• research programs to develop the potential of biomass energy technologies
• investment subsidies (such as grants and loans) to developers to support the capital cost of biomass power plants
• renewable portfolio standards that require utilities and retailers to provide a certain portion of their power and energy sales from renewable sources such as biomass
• procurement of new generation from renewable energy sources for government facilities

The Canadian government has established the Ethanol Expansion Program, which is offering $100 million in funding toward ethanol development facilities across the country. The program is intended to expand fuel ethanol production and use in Canada and reduce transportation-related greenhouse gas emissions.

Other federal measures include the CANMET Energy Technology Centre, which assists the development of green power technologies in Canada. Much of the centre’s effort is focused on the development of biofuels, including the production of ethanol from forestry and agricultural wastes.

Provincial governments are also taking actions to promote biomass as part of their generation mix. Quebec, for example, has invited energy developers to respond to a request for proposals (RFP) to add 100 megawatts of biomass generation by 2012. Ontario has issued an RFP for 300 megawatts of green power. And Nova Scotia has issued an RFP for 60 megawatts of renewable energy, including biomass.

Utility programs

Several utilities have started to invest in renewable energy, developing or purchasing biomass generation to supplement their power supplies. In Alberta, for example, EPCOR purchases green power generated from various sources including biomass. Manitoba Hydro is studying the potential for electricity generation from agricultural wastes. And BC Hydro has set a voluntary portfolio standard of meeting 10 per cent of new electricity demand through green energy generated from resources such as biomass.

A growing number of utilities are also marketing and selling renewable power to consumers through green power marketing and green pricing, utility-sponsored programs that allow electricity consumers to support the development of renewable energy resources. These programs could increase the future use of biomass.

Industry investments

There are many private developers involved in biomass generation. In British Columbia, for example, sawmill and forestry companies are exploring opportunities for biomass power, with plans to commission new biomass power plants in the new few years. In Quebec, the use of biomass by industry, mainly in the forest sector, has doubled and now totals about 11 per cent of total energy consumption in the province.