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Canada: Bioenergy to Canada

2011/03/16

Bioenergy to Canada

(Last updated: 17 Jun 2009)
 

Trends and opportunities

The market

Canada has more biomass resource per capita than any other nation. Canadians have access to a diverse wealth of crops, trees, animals, marine life, micro-organisms, and industrial and municipal organic residues. Through its efforts to take advantage of these vast resources, the Canadian bioenergy industry is pushing to establish itself as a significant player in the development of bioenergy technologies, equipment and services. Demonstrated expertise in the bioenergy industry includes the following:

  • Design, construction and operation of large-scale ethanol production plants. 
  • Scalable pyrolysis technologies that convert wood and other biomass residues into bio-oils, carbon, biogas and other products. 
  • Technology for large-scale production of high quality biodiesel fuel, derived from vegetable and animal fats, at a cost that competes with petroleum diesel. 
  • High efficiency wood burning appliances and automated commercial systems. 
  • Landfill gas electricity generation project design, construction and operation. 
  • Technology for high efficiency conversion of secondary sludge generated by wastewater treatment plants into heat and electricity. 
  • Low cost turnkey anaerobic digester and power generation systems for livestock farms. 
  • Bioenergy research facilities and expertise. 
  • Supply of sustainable feedstock for use in bioenergy processes.

Approximately six % of Canada’s total primary energy demand is currently supplied by the combustion of biomass, mainly in the forest sector. Successes have also come from using landfill gas (15 sites in use) to generate electricity and heat facilities.


Canada is also among the world leaders in the construction and operation of large-scale ethanol production plants and output. Canada currently produces over 1,300 million litres of ethanol and has another 300+ million litres of capacity due to come online from plants under construction. There are more than 1,000 Canadian retail locations selling ethanol blended gasoline.
(Source: Natural Resources Canada)

Opportunities

Opportunities in the Canadian bioenergy industry may lie in the following:

  • Need for transportation applications in civil and industrial uses that reduce costs, lower emissions and provide sound job and profit models.
  • Biomass projects are now targeting to utilise forest harvest biomass and Canada does not have low-cost supply chains established for this biomass. It will take a major effort by Nordic and Canadian associations, companies and governments to transfer technology and learning to Canadian forests. (Source: Innovation Roadmap on Bio-based Feedstocks, Fuels, and Industrial Products, p35).
  •  Improved biochemical and complementary separation and conversion technologies.
  • Lack of human resources that are well trained and up-to-date, which includes scientists, financiers, regulators and industrial clients. (Source: Innovation Roadmap on Bio-based Feedstocks, Fuels, and Industrial Products, p35).
  • Buying Canadian biomass or partnering with Canadians in joint ventures, consultancy or technology supply. (Source: Getting into the bioenergy boom).
  • Work and/or partner with Canadian companies who have received government grant money to further commercialisation of technologies.
  • ecoENERGY for Biofuels will invest up to CDN$1.5 billion over nine years in support of biofuel production in Canada. Administered by Natural Resources Canada. The ecoENERGY for biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. (Source: http://oee.nrcan.gc.ca/transportation/ecoenergy-biofuels/index.cfm?attr=16). More information can be found at www.ecoaction.gc.ca/news-nouvelles/20071203-eng.cfm.

Related opportunities:

  • A recent initiative called GoPellets was launched to stimulate the pellet market. This combined project between the Canadian Bioenergy Association and Wood Pellet Association of Canada aims to develop the Canadian market by lobbying for incentives and working with government to bring down barriers. (Source: Putting Canada on Track).
  • Alberta’s Nine-Point Bioenergy Plan in October 2006, which included CDN$239 million in program funding, established huge interest and initial bioenergy investment. The programs have already funded over 65 projects. The funding deadline for these programs has been extended from 2009 to 2011. (Source: www.energy.gov.ab.ca/BioEnergy/1521.asp).

Tariffs, regulations and customs

The Canadian Customs Tariff is based on the World Customs Organization's Harmonized Commodity Description and Coding System (HS). It is suggested that companies visit the Canada Border Service Agency (CBSA) website in greater detail to identify any import duties that may apply to their products.
 

It’s also recommended that companies seek a final ruling from CBSA prior to shipping any product.
CBSA can be contacted at http://cbsa-asfc.gc.ca/contact/general-generaux-eng.html.

General Canada import requirements are also available at the Government of Canada website.

Marketing your products and services

Market entry

Canada is a very open economy that is receptive to new ideas due in part to a strong import culture and deep history of working with other nations. There are; however, a few points to consider:

  • Treat Canada as a highly competitive, mature and demanding market that has similar expectations in terms of readiness, competitiveness, and communication when compared to the USA and EU markets.
  • Don’t automatically assume that Canada is the perfect ‘springboard’ into the US market. It can be, but many companies find that Canada is a high performing market on its own that can be very rewarding.
  • Be humble in your approach and do your research first – as much as Canadians enjoy dealing with Australia the ideas and solutions presented must make sense for the market, be competitive, and show clear ROI.
  • Understand that Canadians prefer to establish rapport and that relationships are key.
  • Prompt response and easy communication is expected.
  • Although Canada and Australia share almost the same legal systems it is proactive to have a legal and taxation contact that can assist quickly when needed.

There are several focused and broad tradeshows and conferences in Canada. These events are a good medium to obtain an understanding of the market and to showcase products/ technologies:

Links and industry contacts

Bioenergy-related resources

Canadian Association for Renewable Energies – www.renewables.ca 
Canadian Bioenergy Association – www.canbio.ca 
Canadian Fuels Association – http://greenfuels.org
The Ontario Sustainable Energy Association – www.ontario-sea.org  

 
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