Funded by the Government of Alberta

Patrick Guidera, Director, Forest Technology

October 17, 2016

U of A Energy Club

Energy Panel on Alternative renewable resources to Coal

• Short introduction to AI Bio

• Alberta Climate Leadership Plan

• Wood Pellets Substitute

• Biomass and Coal power producers

• Update on Power Production in Alberta

• BIOCLEANTECH Forum , Ottawa, Nov.1

Overview:

“We invest in science and research to grow prosperity in Alberta’s

agriculture, forestry and healthy food sectors”

Alberta Innovates Bio Solutions Vision

Alberta’s Research & Innovation Framework

Innovation and

Advanced Eductation

ARIA Alberta Research

& Innovation Authority

Alberta Innovates:

Technology Futures

Alberta Innovates: Health

Solutions

Alberta Innovates:

Bio Solutions

Alberta Innovates: Energy &

Environment Solutions

Government of Alberta Ministries

Advanced Education & Technology

Government of Alberta

Post Secondary Institutions and Other Research Performers

Research & Innovation Organizations

Advice from Industry and Society ‘Capturing Value’ from Industry for Society

Research and Innovation Connector

Alberta Enterprise Corporation

Commercialization Service Providers

Agriculture

and

Forestry

Alberta Livestock

and Meat

Agency

Alberta Crop

Industry Develop

ment Fund

Economic Development

and Trade

Ministries

Government of Alberta

Health

Alberta Innovates

Health Solutions

Alberta Innovates

Bio Solutions

Alberta Innovates Energy & Environment

Solutions

Research and Innovation Organizations

Collaboratories

Alberta’s Research & Innovation System

Innovation and

Advanced Eductation

ARIA Alberta Research

& Innovation Authority

Alberta Innovates:

Technology Futures

Alberta Innovates: Health

Solutions

Alberta Innovates:

Bio Solutions

Alberta Innovates: Energy &

Environment Solutions

Government of Alberta Ministries

Advanced Education & Technology

Government of Alberta

Post Secondary Institutions and Other Research Performers

Research & Innovation Organizations

Advice from Industry and Society ‘Capturing Value’ from Industry for Society

Research and Innovation Connector

Alberta Enterprise Corporation

Commercialization Service Providers

Agriculture

and

Forestry

Economic Development

and Trade

Ministries

Government of Alberta

Health

Alberta Innovates

Health Solutions

Alberta Innovates

Bio Solutions

Alberta Innovates

Energy and Environment Solutions

Research and Innovation Organizations

Collaboratories

InnoTech

Alberta

Proposed November 1, 2016

Energy

Alberta

Research

Innovation

Committee

InnoTech

Alberta

Alberta

Innovates

Environment

and Parks

Food, Fibre, Environment,

Energy, Health

Bill 11 proposes to

merge four

existing Alberta

Innovates

corporations into

one. This leaner

entity would build

on the strengths of

each corporation

while enabling a

stronger, more

responsive

research and

innovation system.

•Number of Projects 174

•AI Bio Contribution $ 67 million

•Total Value of Projects $225 million (cash only)

AI Bio 2014-15 Portfolio

Alberta’s Climate Leadership Plan

Key Initiatives

1. Implementing a new carbon economy-wide price on GHG

– carbon levy on transportation and heating fuels

– Emissions intensity pricing replaces emissions performance based system

– generated funding will be recycled back into the economy

2. Phasing out emissions from coal-generated electricity (2030)

replacing renewable sources and natural gas

3. Legislated oil sands limit of 100 (Mt) per year

4. New methane emission reduction strategy to reduce methane

emissions (oil and gas sector) by 45% from 2014 levels by 2025

Why Wood Pellets are an Easy Substitute for Coal in Pulverized Coal (PC) Power Plants Wood pellets are upgraded solid fuel made from biomass

• They are grindable. • They are dry (~6% moisture content). • Easily handled • Energy density of ~18 Gigajoules/tonne. • Low co-firing ratios (less than ~6% white wood pellets) no

modifications required. • higher blend ratios modifications are needed but they are well

understood and proven in large PC plants

Wood pellets can replace coal in large

pulverized coal power stations Optimization of existing asset:

• Cost competitive • Reliable / same uptime • Flexible, dispatchable generation

Demonstrated at scale in many locations • High output / no de-rate

Low carbon Renewable & sustainable Lower SOx, NOx, Hg emissions

Alberta Biomass & Coal Plant Producers AESO Current Supply Demand Report

6299 MW

437 MW

http://ets.aeso.ca/ets_web/ip/Market/Reports/CSDReportServlet

MC - Maximum Capability TNG - Total Net Generation

Alberta remains highly dependent on coal for power generation. A solution that leverages its existing coal assets and makes a lot of sense.

OPG’s 240 MW Atikokan Ontario Plant Full firing on industrial wood pellets

Keephills #3: • 50/50 joint ownership between Capital Power and TransAlta. • Cost $1.98 billion to build. • Less than 5 years old • 495 MW high-efficiency super-critical power plant • 70 km west of Edmonton

Keephills #3: • Consume 1.7 million metric tons per year under a full conversion. • Increased cost over current generation with coal, about 6.9 cents per increase in cost generation • Option would require support to the utility to remain profitable

Mills in Western Canada are export focused, close to ocean ports. These Mills are on rail with good mill-to-port logistics for BC production. Alberta has 4 small pellet mills (~ 86,000 tons/a) There are unexploited industrial pellet production opportunities in Alberta!

Wood Pellet Production Mills in Alberta and BC

• There is a real potential for demand for pellets in Alberta’s power sector.

• But both the utilities and the policymakers need to know the benefits.

• When placed in the context of the entire generating fleet and/or the provincial

budget, the cost is almost a rounding error. • Given the current national policy directions

on carbon emissions, Alberta could lead the way with action sooner than 2030.

• policymakers need to hear the story, understand the economics, and know

that the power stations can use pellets with no loss of reliability or output

Woody Biomass is a real option for supplementing coal:

Alberta’s has Abundant Biomass:

1. 2/3rd’s of Alberta is heavily forested and with a mature forest products industry.

2. There are no industrial pellet mills in Alberta. Currently all industrial pellets are exported via ship and Alberta is land locked.

3. If an Alberta power station should commit to conversion from coal to wood, Alberta will have a commercial industrial pellet plant(s).

Capital Power Genesse #3 October 5th, 2016

William Strauss, PhD

FutureMetrics – Intelligent Analysis and Strategic Leadership for the Pellet Sector WilliamStrauss@FutureMetrics.

Special thank-you to the following experts for supplying slides and information incorporated within this presentation.

Funded by the Government of Alberta

Patrick Guidera, Director, Forest Technologies

Bioindustrial Innovation, Alberta Innovates Bio Solutions

pat.guidera@albertainnovates.ca 780-638-3722

Thank you for your attention !!

Data Framework

• BRIMS will provide an interactive web application for mapping and reporting on biomass & other ecosystem services in Alberta

• Growing interest in the supply of biomass and other ecosystem services

• BRIMS collates data from various sectors into a comprehensive database

Government of Alberta

Alberta’s Research and Innovation System

39

78 active

projects (2014-15)

82 active

projects (2014-15)

14 active

projects (2014-15)

Candidates for a full conversion include the 5 year old Keephills Unit 3, and 11 year old Genesse #3