From Biofuels to the Bio-Economy Next Steps for Canada EPAC Billings, MT June 25, 2012.

From Biofuels to the Bio-EconomyFrom Biofuels to the Bio-EconomyNext Steps for CanadaNext Steps for Canada

EPAC Billings, MT

June 25, 2012

Consulate General of CanadaRocky Mountain Region

Territory (5 states)

Montana

Wyoming

Colorado

Utah

New Mexico

Territory (5 states)

Montana

Wyoming

Colorado

Utah

New Mexico

MT

WY

COUT

• Political Section: Monitor political & economic events

• Consular Section: Assist Canadians

• Trade Section: Promote cross-border trade and investment

• Political Section: Monitor political & economic events

• Consular Section: Assist Canadians

• Trade Section: Promote cross-border trade and investment

NMNM

Denver2

Canada

Resource Rich:

Agriculture• S. Ontario, Quebec lowlands, Prairies

Minerals• Gold, Potash, Iron Ore, Copper, Nickel,

etc.• Production across all Canada

Forestry• Production across all Canada

Canadian Ethanol Development – 1980s &’90s

Intent: Introduce cleaner/less polluting fuels 1980s >

• Wheat-based ethanol production in Prairies1998 >

• Corn-based ethanol production begins in Ontario (presently - 60% of Canadian production is corn-based)

Ethanol slower to ‘take-off’ in Canada than US Government emphasis on environmental (GHG) vs

energy security (GHGs, Kyoto, Sustainability) Mandates introduced in 2010 (other programs hadn’t

adequate market penetration or reductions in GHGs)

Canadian Renewable Fuels Mandates:

Nationwide Renewable Fuels ContentMandate:

Gasoline – 5% renewable content (ethanol) - December 2010Diesel / Heating Oil – 2% renewable content - July 2011

Provincial Mandates:

Ethanol %Biodiesel %

Manitoba 8.5 2.0 Ontario 5.0 2.0 Saskatchewan 7.5 2.0 British Columbia 5.0 2.0

Quebec 5.0 (target) 2.0

Alberta 5.0 2.0

Results:

Rising Ethanol Production• 1.9 billion litres/yr (2011)• 12% yr/yr increase• 80% of ethanol production from plants

built after 2005 (legislation introduced in ’06)

US imports cover the shortfall• Canada largest importer of US ethanol• Blend wall issues

Rise of 2nd Generation Biofuels

Cellulosic production: ethanol from fuel additive to fuel alternative

Decline of Canadian forestry industry

• Rural forestry communities declining

Long-term ethanol food crop (corn/wheat) constraints

Canadian Renewable Fuels Strategy

Intersection of Canada’s Natural Resources, Infrastructure and People Strengths

• Agriculture• Forestry• Oil/Gas• Intellectual know-how

Result: The Bio-economy

Bio-Chemical Cluster Development

Drayton Valley / Ft Saskatchwan

Drayton Valley / Ft Saskatchwan

SarniaSarnia

MontrealMontreal

Sarnia (Ontario)

One of North America’s five principal petrochemical complexes

Large, existing infrastructure serving Central Canada and US Great Lakes/Midwest

Intersection of Forestry (pulp/paper), Agriculture, Petro-chemical Infrastructure and Human Capital

Focus on sustainability

Success Stories: BioAmber, Rentech, Gevo (Lanxess), Zeachem (?)

Drayton Valley/Ft Saskatchewan (Alberta)

One of North America’s five principal petrochemical complexes

Intersection of Agriculture, Forestry (pulp/paper), Petro-chemical Infrastructure + Human Capital

Proximity to fossil fuel feedstocks Local Champions: Biobased-chemical programs

• Biorefining Conversions Network• Alberta Innovates BioSolutions

Success Stories: Mascoma, Weyerhaeuser, CLIB, Otoka Energy

BioEnergy Canada: Progression

Agriculture Ethanol Forestry

Biobased Chemicals + Fuels

Bio-Economy Canada

More Information:Presentations/Publications: Bioproducts in Canada: Business Case 2012

(www.investincanada.ca) Ethanol’s Contribution to Canada’s Transportation Sector

(www.growthenergy.org) The Greening of Sarnia-Lambton

(www.suschemalliance.ca)

Canadian Biofuels Conferences – 2012/13 Canadian Renewable Fuels Summit

• Ottawa (December 3-5, 2012) World Congress on Industrial Biotechnology and

Bioprocessing• Montreal (June 16-19, 2013)

Biorefining Conversions Network Annual Strategic Retreat• Banff, AB (November 2012)

Sustainable Chemistry Alliance Annual General Meeting• Sarnia, ON (June 2013)

Stan PenceConsulate General of Canada –

Denver303.626.0663

[email protected]