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$559 million in Green Infrastructure Investments announced for Greater Montreal Area

Following last week's similar announcement for Québec City, Ms. Line Beauchamp, Minister of Sustainable Development, Environment and Parks, and Mr. Steven Blaney, MP for Lévis-Bellechasse, today announced joint federal-provincial support for major Green Infrastructure Projects in the Greater Montreal Area (the "Projects").

The Projects represent an overall investment of $559 million and involve the construction of two facilities for organic waste treatment using anaerobic digestion, two composting centers and one pilot organic waste pretreatment facility, at a cost of close to $213 million. In addition, three more organic waste treatment facilities which would be constructed in Laval, Longueuil and Montreal's South Shore would benefit from additional joint federal-provincial financing of approximately $180 million, with the balance to be financed via municipal contributions.

The Projects will allow for the treatment of a large part of the organic waste generated in the Greater Montreal Area, including Laval and Montreal's South Shore. The biomethanization process used in the facilities will allow for the treatment of table scraps, septic sludge and organic waste from homes, factories and institutions, while the composting process will also treat table scraps, leaves and grass clippings produced in the municipalities and agglomerations. Ultimately, these Projects will limit the amount of waste sent to municipal landfill sites and allow, in the case of anaerobic digestion, for the production of bioenergy to replace fossil fuel and combustibles, thus reducing greenhouse gas emissions (GGEs).

Of the overall investment, the Government of Canada has committed to contribute close to $150 million, or up to one third of eligible costs. The federal contribution to the Project will be provided through the new, $1-billion, five-year, nation-wide Green Infrastructure Fund, which is part of Canada's Economic Action Plan announced in the January 2009 Budget. The Green Infrastructure Fund supports sustainable energy generation and transmission, as well as wastewater treatment and solid waste management at the municipal level.

As for the Government of Québec, it is to fund approximately $165 million of the Projects. The provincial contribution is being granted under the province's Program for the Treatment of Organic Matter through Biomethanization and Composting (French-only) (the "Program") which benefits from a total investment of about $650 million, of which at least $187 million is to come from the Government of Québec. Projects funded under the Program are to create approximately 5,200 direct and indirect jobs. The Program aims to implement one of the major components of Québec's new Management of Residual Materials Policy (French-only) by progressively banning the landfilling of organic matter by 2020, while contributing to the achievement of the province's GHG emissions reduction target.

The federal government is also evaluating other biomethanization projects to be undertaken in the province of Québec under the Green Infrastructure Fund. The total federal investment in these biomethanization projects could reach more than $170 million.

Governments of Canada and of Québec announce major Green Infrastructure Investment in Québec City

Today the Honourable Josée Verner, Minister of Intergovernmental Affairs, President of the Queen's Privy Council for Canada and Minister for La Francophonie and Minister responsible for the Québec City Region, Ms. Line Beauchamp, Minister of Sustainable Development, Environment and Parks, and Mr. Sam Hamad, Minister of Employment and Social Solidarity and Minister responsible for the Capitale-Nationale region of Québec, announced support for a major Green Infrastructure Project in Québec City (the "Project"). The Project represents a global investment of $57 million and will create more than 450 direct and indirect jobs in the region.

The Project involves the construction of an organic waste treatment facility, including biomethanization and composting equipment. In its first five years of operation, it is expected the facility will be capable of treating up to 70% of the organic waste produced by the entire population of Québec City. Once at full capacity, it will treat up to 85,000 tonnes of organic waste previously destined to incineration. Biomethanization is the process of decomposing biomass with anaerobic bacteria to produce biogas, a Green Fuel that can displace fossil fuels in automotive or home heating applications.

Of the overall investment, the Government of Canada has committed to contribute close to $17 million, or up to one third of eligible costs. The federal contribution to the Project will be provided through the new, $1-billion, five-year, nation-wide Green Infrastructure Fund, which is part of Canada's Economic Action Plan announced in the January 2009 Budget. The Green Infrastructure Fund supports sustainable energy generation and transmission, as well as wastewater treatment and solid waste management at the municipal level.

As for the Government of Québec, it is to fund approximately $17.7 million of the Project. The provincial contribution is being granted under the province's Program for the Treatment of Organic Matter through Biomethanization and Composting (French-only) (the "Program") which benefits from a total investment of about $650 million, of which at least $187 million is to come from the Government of Québec. Projects funded under the Program are to create approximately 5,200 direct and indirect jobs. The Program aims to implement one of the major components of Québec's new Management of Residual Materials Policy (French-only) by progressively banning the landfilling of organic matter by 2020, while contributing to the achievement of the province's GHG emissions reduction target.

Québec City Mayor Régis Labeaume announced that the remainder of the Project's cost will be borne by the City.

The federal government is also evaluating other biomethanization projects to be undertaken in the province of Québec under the Green Infrastructure Fund. The total federal investment in these biomethanization projects could reach more than $170 million.

Canadian government announces nineteen successful projects in response to a call for proposals under the Renewable and Clean Energy portion of the Clean Energy Fund

The Honourable Lisa Raitt, Canada's Minister of Natural Resources, today announced support for nineteen (19) projects selected in response to a call for proposals under the Renewable and Clean Energy portion of the Clean Energy Fund. Up to $146 million will be invested over five (5) years to support the demonstration of renewable and clean energy across the country, including integrated community energy solutions, smart grid technology, and renewable applications with solar, wind, tidal and geothermal energy.

Under the Clean Energy Fund, part of the Government of Canada's Economic Action Plan (Budget 2009), the government is to invest almost $1 billion over five (5) years in research, development and demonstration projects to advance Canadian leadership in clean energy technologies. This includes large-scale carbon capture and storage demonstration projects, three (3) of which have already been announced totaling $466 million from the fund, as well as smaller-scale demonstration projects of renewable and alternative energy technologies such as those announced today. Total investments under the Clean Energy Fund for large and small demonstration projects are to benefit Canada's economy by leveraging nearly $3.5 billion in further investments by industry and other levels of government.

The Government is now inviting the project proponents to begin negotiations toward formal contribution agreements to set the conditions under which funding will be delivered. The funding amounts are expected to range from $2.5 million to $20 million for each project. However, until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of the Government of Canada to make a financial contribution to these projects.

Successful Project Descriptions

A) Projects expected to receive $2.5-$5 million

1. Biomass-based Urban Central Heating Demonstration
Lead proponent: SSQ, Société immobilière Inc.
Strategic Area: Buildings/Community Energy Systems
Location: Québec, Québec
Purpose: La Cité Verte is an innovative real estate project, which combines various initiatives related to sustainable development such as renewable energy utilization, energy efficient design, the management of water consumption, energy and waste management. The funding will support the installation of a biomass and wood-based district heating system. This project combines a variety of technologies and partners.

2. Utility-scale Electricity Storage Demonstration using New and Re-purposed Lithium Ion Automotive Batteries
Lead proponent: CEATI International Inc.
Strategic Area: Electricity Storage
Location: Toronto and Cornwall, Ontario, and Manitoba
Purpose: This project will address electricity storage for renewable and high-density urban applications. The project will demonstrate utility-scale electricity storage systems using new and re-purposed automotive batteries. This concept will reduce cost for electric vehicle batteries providing a future market to meet urban electricity demand using automotive batteries.

3. Energy Management Business Intelligence Platform Development and Demonstration
Lead proponent: Power Measurement Ltd.
Strategic Area: Smart Grid
Location: Commercial buildings in Calgary, Alberta, Ontario and BCIT in Burnaby, British Columbia
Purpose: This project will develop and demonstrate smart grid technology, voluntary load curtailment and peak shaving in a commercial building setting. Most projects of this type to date have focused on residences. This technology will also enable tenants to voluntarily reduce their demand based on real-time price signals.

4. Wind and Storage Demonstration in a First Nations Community
Lead proponent: Cowessess First Nation
Strategic Area: Wind/Storage
Location: Cowessess, Saskatchewan
Purpose: This project aims to demonstrate a combined wind and storage energy system in a First Nation community. The successful demonstration would prove this system as a model for other First Nation's communities across Canada.

5. Bioenergy Optimization Program Demonstration
Lead proponent: Manitoba Hydro
Strategic Area: Bioenergy
Location: Five locations in Manitoba
Purpose: This project is comprised of five different bioenergy systems at five different project sites. The project demonstrates collaboration between utility companies and customers. It is anticipated that the project will help to remove the perceived barrier of technical and operational risk and will promote the wide-scale adoption of bioenergy systems in Canada.

6. Offshore Wave Energy Demonstration
Lead proponent: SyncWave Systems Inc.
Strategic Area: Marine/Hydro
Location: Offshore Central Vancouver Island near Tofino, British Columbia
Purpose: This project will demonstrate the performance, operations and life cycle of a pre-commercial 100-kW wave energy device in ocean conditions typical of British Columbia's open coast. Canada has potentially significant wave energy resources, and it is important for Canada to participate in demonstrations to further the technology, understanding of ocean conditions and the regulatory environment.

7. Demonstration of Waste-heat Recovery at Compressor Stations
Lead proponent: Great Northern Power Corp.
Strategic Area: Hybrid Systems/Northern
Location: Compressor Stations in Alberta and British Columbia
Purpose: This project plans to demonstrate waste-heat recovery systems on a variety of stationary, reciprocating engines greater than 1,000 hp. A successful demonstration has the opportunity to lead to commercialization and wide-scale adoption of this technology at compressor stations and other industrial applications across Canada.

8. Residential Implementation of Solar-thermal Heating Systems
Lead proponent: Enbridge Gas Distribution Inc.
Strategic Area: Buildings/Solar
Location: Greater Toronto Area, Ontario
Purpose: The project will use different types of solar collectors and storage technologies to verify and compare their costs, performance and technical qualities. The project has the ability to validate the technology and provide integrated systems at a lower cost to consumers, thereby allowing greater market penetration.

9. Food and Yard Waste Anaerobic Digestion to Electricity Demonstration
Lead proponent: Harvest Power Canada Ltd.
Strategic Area: Bioenergy
Location: Fraser Richmond Soil and Fibre, British Columbia
Purpose: This project would be Canada's first high-efficiency system for producing up to 1 MW of renewable energy from food and yard waste. If successful, this technology has the potential to be rapidly deployed across Canada as a mechanism to divert food wastes from landfills and produce renewable energy.

B) Projects expected to receive $5-$10 million

10. Demonstration of Heat and Power from Biomass Gasification
Lead proponent: Nexterra Systems Corp.
Strategic Area: Bioenergy
Location: UBC Point Grey Campus, Vancouver, British Columbia
Purpose: This project will showcase biomass gasification integrated with an internal combustion engine generator in a novel, small-scale combined heat and power demonstration suited for on-site applications at public institutions, industrial facilities, and northern and remote Canadian communities. The project has the potential to overcome the difficulty of gas clean up and opens up the possibility of significant replication in Canada and overseas.

11. Energy Storage and Demand Response for Near-capacity Substation
Lead proponent: BC Hydro
Strategic Area: Smart Grid/Electricity Storage
Location: Golden and Field, British Columbia
Purpose: This project demonstrates the integration of energy storage as a mechanism for reducing electricity demand at near-peak capacity substations. This type of solution has the ability to be used in other remote communities where the grid reliability is low and the cost of the transmission line upgrade is uneconomical.

12. Interactive Smart Zone Demonstration in Québec
Lead proponent: Hydro-Québec - Institut de recherche
Strategic Area: Smart Grid
Location: Boucherville, Québec
Purpose: This project will ensure the installation of an interactive network area in a neighbourhood of Boucherville. This will demonstrate different technologies and concepts related to modernization of electrical networks, in particular the deployment of infrastructure for charging electric and hybrid rechargeable vehicles.

13. Biomass and Coal Co-firing Demonstration in Coal Plants
Lead proponent: Nova Scotia Power
Strategic Area: Bioenergy
Location: Coal Plants in Nova Scotia
Purpose: This demonstration project aims to determine optimum fuel blends for the potential co-firing of wood-based biomass with coal as a mechanism to partially replace fossil fuels with sustainable energy sources in coal plants. If successful, there is potential for wide-scale implementation across Canada and the United States.

C) Projects expected to receive $10-$20 million

14. Tidal Energy Project in the Bay of Fundy
Lead proponent: Fundy Ocean Research Centre for Energy (FORCE)
Strategic Area: Marine/Hydro
Location: Minas Passage, Bay of Fundy, Nova Scotia
Purpose: The project plans to validate the performance and resilience of tidal current turbines in the Minas Passage of the Bay of Fundy. This will be the first Canadian deployment of commercial-scale tidal turbines. The project has the potential to advance tidal energy in Canada, provide economic impacts in the Atlantic region and place Canada as a world leader in marine renewable energy.

15. Northern Application of a Geothermal District Heating System
Lead proponent: City of Yellowknife
Strategic Area: Northern/Community Energy System
Location: Yellowknife, Northwest Territories
Purpose: The City of Yellowknife is in advanced stages of project engineering and plans to install a district heating system by extracting heat from the abandoned Con Mine. This project has the potential to provide a cost effective and a more environmentally friendly alternative to fossil fuel based heat. The information that will come out of this project on the effect of extracting ground-source heat from an existing aquifer and its associated long-term heat capacity will help determine if this technology could be replicated in other northern communities.

16. Electricity Load Control Demonstration
Lead proponent: New Brunswick Power Corporation
Strategic Area: Smart Grid
Location: Four maritime communities in New Brunswick, Nova Scotia and Prince Edward Island
Purpose: Traditionally, to accommodate the intermittent nature of wind power, other generation sources are required to follow the net effect of variation in load and wind power production. This project focuses on the integration between smart grid technologies, customer loads and intermittent renewables in a region with potentially significant renewable electricity capacity. It will allow utilities to better understand how customers will react to smart grid and which loads can be controlled by real-time demand balancing in up to 750 buildings, thereby assisting these utilities to capitalize on renewable resources in the region.

17. A 9-MW Wind Technology Research and Development Park
Lead proponent: Wind Energy Institute of Canada
Strategic Area: Wind/Storage
Location: Prince Edward Island
Purpose: The 9-MW wind park proposed will be the first wind/storage combination in Prince Edward Island. The project's research base has a strong focus on information dissemination and would be a good base for supporting additional wind research.

18. Demonstration of Fish-friendly and VLH Turbines in Existing Low-head Water-control Dams
Lead proponent: Eco Joule Inc.
Strategic Area: Marine/Hydro
Location: Mississippi River System, Ontario
Purpose: This project will demonstrate three in-stream hydro technologies including fish-friendly, low-head hydro turbines along an existing water-controlled river system in Ontario. It has the opportunity to prove the technology concept, demonstrate cooperation with a conservation organization, and reduce the barriers to commercialization.

19. Community-based Geothermal Demonstration in a Remote First Nations Community
Lead proponent: Borealis GeoPower Inc./Acho Dene Koe First Nation
Strategic Area: Hybrid Systems/Northern
Location: Fort Liard, Northwest Territories
Purpose: This project will demonstrate how a northern community can use a geothermal resource to generate electricity and heat, thereby reducing the entire community's fossil fuel demand and energy costs. A successful demonstration will provide a model for other northern and First Nations communities with available geothermal resources.

International Energy Agency launches World Energy Outlook 2009 in London

The International Energy Agency>International Energy Agency ("IEA") today launched its annual flagship publication in London. The World Energy Outlook 2009 (WEO 2009) looks at the impact of the economic downturn on energy use, CO2 emissions and energy investment and what will be required at the UN climate conference in Copenhagen to put together an agreement that stops global temperatures rising at a price that is affordable. The WEO 2009 also focuses on the natural gas resource base, current trends and the role gas will play in the future energy mix. Finally, the publication includes a review of energy in Southeast Asia, looking at that fast-growing region and its implications for global energy markets.

The IEA's Executive Director, Mr. Nobuo Tanaka declared that "World leaders gathering in Copenhagen next month for the UN Climate summit have a historic opportunity to avert the worst effects of climate change. The World Energy Outlook 2009 seeks to add momentum to their negotiations at this crucial stage by detailing the practical steps needed for a sustainable energy future as part of a global climate deal" and added that "WEO 2009 provides both a caution and grounds for optimism. Caution, because a continuation of current trends in energy use puts the world on track for a rise in temperature of up to 6°C and poses serious threats to global energy security. Optimism, because there are cost-effective solutions to avoid severe climate change while also enhancing energy security - and these are within reach as the new Outlook shows".

In conjunction with the WEO 2009, the IEA has also released an Executive Summary which provides an overview of the publication's key findings and topics, as well as a Fact Sheet, which provides data in a bullet-point format on the following questions and issues: (1) The sustainability of our current energy pathway; (2) The Impact of the financial crisis on Energy Investment (3) Natural gas' role in the global energy mix; (4) What a low-carbon energy future might look like; (5) The impact of the financial crisis on the outlook for CO2 emissions and global climate; (6) Assumptions on Energy Prices, volatility and the future of cheap energy.

Copies of the World Energy Outlook 2009 can be ordered from the IEA Bookshop.

BC's Northwest Transmission Line Project to receive up to $130 million under the Green Infrastructure Fund

Almost one year ago, British Columbia Premier Gordon Campbell announced that the Province would start the environmental assessment process and First Nations consultation on the Northwest Transmission Line, which consists of a 287 kV line which would extend 335 kilometres into the Northwest portion of the province from Terrace to Meziadin Junction and north to Bob Quinn Lake.

The estimated $404 million project which is expected to be ready for construction in early 2010 has been given a serious boost as a result of yesterday's announcement by the federal government that it has been selected as a priority for funding of up to $130 million under the Green Infrastructure Fund, conditional upon the signing of a contribution agreement with the British Columbia government under the fund.

The Northwest Transmission Line will provide multiple benefits:

As the area surrounding the project has a significant potential to generate green power, local communities will be able to access clean electricity in the future, reducing their reliance on diesel generation and resulting greenhouse gas emissions. There is currently an estimated 2,000 MW of renewable energy in the area from small hydro, geothermal, wind and biomass sources and the project could immediately serve a number of potential generation projects representing approximately 500 MW being considered under British Columbia's current Clean Power Call.

The project also provides access to the electricity grid for potential customers, which in turn will support and promote economic diversification in the area. According to the Mining Association of BC, the project has the potential to attract $15 billion in new capital investments and create almost 11,000 jobs.

Lastly, construction of the transmission line will be a key step in a potential interconnection between southeast Alaska and the North American transmission grid via British Columbia.

Major Investments in Biofuels Development

On August 11, 2009 one of the world's largest energy companies, BP PLC, announced that it had entered into a partnership with Martek Biosciences Corp. to advance the development of a technology to convert sugars into biodiesel.

Under the terms of the joint development agreement (the "JDA"), BP agreed to contribute up to $10 million to a research program aimed at enable large-scale, cost-effective microbial biodiesel production. The sugar to diesel technology would use advanced biological science to convert sugars derived from biomass into lipids with the assistance of fermentation micro-organisms; chemical or thermocatalytic processes are then applied to convert the lipids into fuel molecules.

Most noteworthy is the fact that such biodiesel produced from sustainable feedstocks offers the potential to deliver greenhouse gas emission reductions of up to 80-90% when compared to traditional fossil fuel. Other advantages of the proposed sugar to biodiesel pathway over conventional biodiesel made from vegetable oils noted by BP include:

• Acess to a wide variety of biomass feedstocks such as sugar cane, sugar cane waste (bagasse), energy grass and woodchips, which can be produced at scale and in high yield.
• Use of sustainable, non-food, plant biomass as its feedstock.
• Ability to tailor the product for a variety of diesel and jet-fuel needs.
• Reduced exposure to vegetable oil price.

Under the terms of the partnership, all intellectual property developed during the JDA will be owned by BP, with an exclusive license to Martek for application and commercialization in nutrition, cosmetic, and pharmaceutical applications.

The parties will combine Martek's unique algae-based technologies and intellectual property for the creation of sustainable and affordable technology for microbial biofuel production with BP's expertise in fuels markets and applications, and their more recent experience in biofuels production and commercialization.

The BP-Martek partnership announcement comes on the heels of Exxon Mobil Corp.'s July 14, 2009 announcement of a $600 million investment in next-generation algae-based biofuels in partnership with privately held Synthetic Genomics Inc., with the possibility of significantly more investment to follow in order to scale up the technology and bring it to commercial production.

Announcements such as the ones above from industry heavyweights BP and Exxon Mobil - and their underlying funding of the renewable energy sector - clearly demonstrate that the Oil & Gas industry understands that the world faces a significant challenge to supply the energy required for economic development and improved standards of living while managing greenhouse gas emissions and are now decisively positioning themselves to be part of the climate change solution.

BC Hydro Stakeholder Session - Bioenergy Call for Power Phase II - Community Based Biomass Projects RFQ (CBB)

On Tuesday July 14, 2009 BC Hydro held an introductory stakeholder session pertaining to the Bioenergy Call for Power Phase II - Community Based Biomass Projects (CBB) Request for Qualifications (RFQ). More information on this CBB RFQ can be found on the BC Hydro website.

Through this RFQ, BC Hydro is looking to source power from community-based biomass projects no larger than 5 Mw. The biomass can be any form of biomass that meets BC Clean or Renewable Electricity definitions.

Regarding Timing for the RFQ, the deadline for submissions of proposals is currently set for November 2009, with the RFQ process complete in early 2010. BC Hydro seeks to qualify at least two projects to engage in negotiations after this RFQ process is complete, which may result in Electricity Purchase Agreements being awarded with respect to the qualified proposals.

Feedback on this RFQ can be submitted through the BC Hydro website by filling out and submitting the Draft RFQ Comment Form, and this opportunity is open until July 31, 2009.

Evaluation Criteria is based on: 1) economic viability; 2) development risk; 3) Distribution-system benefits (addressing reliability issues); 4) community benefits; 5) First Nations involvement; and 6) innovation (unproven or near-commercial technology is not excluded). James Grant, the project manager for the CBB commented that these carried equal weight, and that not all were needed but having them all would make a proposal submission stronger.

For development risk, BC Hydro would consider fuel availability for the length of the contract, adverse impacts and community and First Nations engagement and support. Mr. Grant stressed the importance of having the community "onside", and having a First Nations consultation plan. However, some IPP and First Nations attendees questioned the fast approaching time deadlines of the RFQ, the vagueness of it as it is currently drafted (including what constitutes First Nations consultation, and on price signals), and whether it met today's competitive procurement environment.

Other attendees questioned why this was not an ongoing process, while many questioned BC Hydro on "environmental attributes'. Mr. Grant commented that there is some flexibility there in terms of ownership of environmental attributes, but stated that "we want those", and proposed that attendees should submit feedback on this point, and all other points raised through the comment form.

Overall it appeared that many in attendance were not satisfied that this RFQ would lead to competitive opportunities, particularly in light of the upper project size limit of 5 Mw and the fact that BC Hydro foresees only selecting a small number of proposals for bi-lateral negotiations.

Sale of wheat straw biofuel in Ottawa marks a "World First"

One of the most common criticisms of biofuels has been that they generate a "food versus fuel" conflict unacceptable in a world where so many go hungry. In the past few years, biofuel generation has been blamed by many for the rising cost of food. Thus, there is much incentive to generate a form of biofuel that does not use pure food products, such as corn and soy. Enter, wheat straw biofuel. Made from portions of wheat that are usable for food, this cellulosic ethanol is being touted as a far more sustainable version of the "first generation' biofuels which required the use of edible portions of plants.

This week, an Ottawa Shell station will be the first in Canada to sell a 10% cellulosic ethanol-gas blend. Costing the same as unblended gas, and offering equal mileage, the fuel is being produced by Iogen Energy Corporation at a local facility. Royal Dutch Shell is a partner in this project, as they continue to build their involvement in the development of sustainable fuels. While they are a significant investor in the Alberta oil sands and a natural gas producer, they are also the world's largest distributer of biofuels and seek to expand their involvement in the development and distribution of cleaner fuel sources.

At the opening on June 10th, Dr. Graeme Sweeney, Shell's Executive Vice President for Future Fuels and CO2, stated: "while it will be some time before general customers can buy this product at local service stations, we are working with governments to make large-scale production economic." His enthusiasm is echoed by Iogen CEO, Brian Foody, who noted that this station is a "world-first". Federal Transport and Infrastructure Minister John Baird, called is "a great day for Canadian technology and proof that Canada's commitment to developing low CO2 fuels is starting to pay dividends for the environment, farmers, and consumers".

In the hopes of expanding the sale of this particular type of biofuel, Shell has plans to open a second facility in Saskatchewan.

Posted by Sarah Robicheau, Summer Student

BC Hydro announces Phase 2 Bioenergy Call for Power

On March 5, 2009, BC Hydro launched the second phase of its Bioenergy Call for Power. BC Hydro revealed that there will be two streams to the Phase 2 call:

"The first stream is a competitive call for larger-scale biomass projects. Any form of biomass will be eligible and it will include wood waste sourced from new forest tenure enabled through provincial legislation in May 2008. The target is to acquire 1,000 gigawatt-hours per year of energy through this stream.

The second stream will focus on innovative, community-level electricity supply solutions using biomass. Through a request for qualifications, BC Hydro will seek to identify at least two such projects that can provide cost-effective electricity for ratepayers, as well as other quantifiable, local benefits such as improved reliability."

Read the full press release here. See BC Hydro's Bioenergy Call for Power homepage for updates.

Interested bidders may want to check out BC Hydro's report on the Phase 1 call, which it recently filed in its LTAP proceeding before the BC Utilities Commission.

Green energy is the next hot intellectual property sector

As reported in the March issue of Lawyers Weekly, patent filing is a booming area of practice for many Canadian firms. In particular, Davis LLP lawyer Ken Cancellara predicts that there will be a rush to protect intellectual property in the alternative energy sector:

"The Internet isn't the only reason for the increased legal business related to patents. The market 'is stable as far as general industries are concerned, but it's growing and about to explode in another area,' noted Kenneth Cancellara, a partner with Davis LLP in Toronto.That explosion is being felt in the energy sector, and it is especially pronounced in the alternative energy field. 'You can't pick up a newspaper today without reading about biofuels,' said Cancellara.

'If I had a prediction to make,' he added, 'it will be that this area is as important as the pharmaceutical [sector] issues in the 1980s. In the next two to five years, protection of alternative energy sources will become absolutely essential to the survival of the sector.'"

The full text of the article is available here.

OEB to allow small-scale renewable projects to jump the distribution connection queue

Effective February 12, 2009, the Ontario Energy Board ("OEB") amended its Distribution System Code ("DSC") to make it easier for small-scale generation projects to connect to the grid. By default, projects that wish to be connected to a distribution system are considered on a "first come first served" basis. The amendments to the DSC exempt certain projects from the default process, allowing them to jump the queue.

Under the previous version of the DSC, "micro-embedded generation projects", defined as embedded generation facilities with a name-plate rated capacity of 10 kW or less, were exempt fron the queuing process. The amendments preserve the exemption for micro-embedded generation projects and extend it to apply also to "queue exempt small embedded generation facilities", which include the following: any embedded generation facility which is not a micro-embedded generation facility and which has a name-plate rated capacity of 250 kW or less in the case of a facility connected to a less than 15 kV line and 500 kW or less in the case of a facility connected to a 15 kV or greater line.

The expanded exemption applies retroactively to projects already in the connection queue. However, distributors retain the discretion to reject applications where the proposed project may adversely impact a larger generation project already in the queue. Such rejections must be put to the OEB for consideration. A detailed discussion of the amendments, and the discussions leading up to them, is available from the OEB.

In its press release, the OEB justified the amendments as follows: "These changes will support the development of smaller, local generation by allowing pending projects to move forward immediately, and by simplifying the process to connect new smaller generation projects."

The Green Energy Act, to be unveiling next week, may further simplify the process by requiring distributors to connect renewable power projects. The Green Energy Act Alliance (see our related posting ) has been advocating for a "right to connect." We should know by Monday whether such a right is part of Minister Smitherman's bill.

OPG seeks expressions of interest to supply biomass to coal plants

Will the mountains of coal at Nanticoke Generating Station one day be replaced by mountains of switchgrass pellets? Ontario Power Generation is taking further steps to answer that question. OPG had already run some pilot projects in which it co-fired biomass with coal in several of its generating stations. It now wants to assess the commercial feasibility of a large scale switch to biomass.

To that end, OPG has issued a request for expressions of interest (RFEI) for the supply of biomass to Ontario's coal-fired generating facilities. OPG is seeking pricing information regarding the entire solid biomass fuel supply chain, including fuel production, loading/storage, quality control, road/rail/ship transportation, rail equipment, and lakeport terminal services. Interested parties must confirm their participation by February 3, 2009. Responses are due at 3:00 pm on February 26, 2009.

For more background on the announcement, see Tyler Hamilton's article in the Toronto Star.

BC Public Sector may purchase $24 million in offsets to be carbon neutral by 2010

Submitted by Grant Boyle

On June 26 B.C. released its Climate Action Plan, which outlines strategies that will help the province reach 73% of its goal of reducing GHGs 33% by 2020 from 2007 levels. The Plan outlines existing and upcoming policy initiatives that are intended to help reduce emissions from transportation, buildings, waste, agriculture, industry, energy and forestry in the province.

One of the legislated requirements highlighted under the Plan is for the province’s public sector to be carbon neutral by 2010. Under the BC Greenhouse Gas Reduction Act, all provincial ministries, health authorities, school districts, colleges, universities, Crown Corporations and other government agencies must be carbon neutral as early as 2010.

Public sector organizations must publically report emissions, reduce emissions and offset any remaining emissions. The government will set up the Pacific Carbon Trust as a new Crown Corporation to meet public sector demand for offsets. The 2008 Budget provides $24 million to invest in GHG-reduction projects. Although, the government has not indicated what type of offsets the Trust will accept, the Plan says that the initial mandate of the Trust is to offer “credible, low cost offsets” to the public sector. In light of Victoria’s indication that no regulations to implement BC’s Greenhouse Gas Reduction Cap and Trade Act will pass this year, the Pacific Carbon Trust’s mandate could drive the first compliance market for carbon offsets in the province, creating new opportunities for carbon reduction project developers.

The 2008 Budget also allocates around $100 million to support energy efficiency upgrades in public buildings and $15 million for communications tools that reduce the need to travel as measures to reduce emissions from the public sector.

No consensus on biofuel certification

Submitted by Jason Fisher

The BBC News website has reported that the G8 nations and five important developing nations have been unable to craft a consensus policy on biofuels following meetings in held in Brazil this month. The nations held the meetings to try develop an international certification system for biofuels, which would hopefully result in a review of tarriffs put in place to block imports of biofuels into the US and EU.

Although no binding decision was reached, the parties were able to agree on some of the fundamental principles that should be employed in any test for certification, such as requiring that biofuels not be made from materials grown on land with "recognized value for biodiversity", and requiring that GHG emissions from the production and use of biofuels "should be significantly less than those produced by fossil fuels".

Carbon Tax - "Ouch - my gas tank" OR "Yeah my wallet"

The 2008 BC Budget was released yesterday, and yes it was green. It was even released on green paper (or at least the pdf copy was).

The papers are all carrying a similar headline this morning "Carbon Crunch" or "Budget hits gas tanks" but really, the BC carbon tax will be a moot point for most of us. At $10 per tonne of carbon in 2008 (gradually increasing to $30 by 2012) it amounts to 2.41 cents per litre of gas. But this is all offset by tax rebates to both individuals and businesses. Low income families get an extra top up, and each resident of BC will get a $100 in the pocket this year as a one time 'dividend' for making the polluter pay. Add in the tax rebates on certain green techs (i.e. EnergyStar appliances) and it is easy for this to be a windfall for most British Columbians.

What is much more interesting is the impacts this will have on BC businesses. Here are a few highlights:

• Truckers - take a tip from the street racers and get yourself a new spoiler. A whole slew of add-ons for the trucking industry aimed at making the transportation sector more fuel efficient are now PST exempt. Labour for installation is also exempt.
• Builders - as announced in last years budget, a new building code is coming to BC. Aimed at greening building practices and increasing the efficiency of our building stock in BC, this years budget has added funds to program to ensure it meets the rigid timelines set for reform.
• BC Coal - a strong message in this budget - don't burn coal in BC. If you weren't convinced after the 2007 Energy Plan when new coal plants were limited to those with no carbon emissions, the carbon tax adds over $20.79 per tonne to Canadian bitumous coal consumed in BC. By 2012, this will be $62.73 a tonne. Query, will this impact our imports of energy from coal fired plants in Alberta? Probably not as the BC government has specifically said the goal is to only target BC sourced emissions.
• Other Energy - all energy producers using fossil fuel, be it diesel in remote communities, or natural gas in large thermal plants, will feel the squeeze of the carbon tax. On the other hand, renewables such as run-of-the-river, wind, ocean and solar, are all a bit more competitive as they do not have to pay tax on their fuel source.
• Biomass - biomass and biofuels are specifically exempted from the fuel tax on the basis that the carbon released represents carbon previously sequestered as the plant matter grew. Of course this only holds true as long as we plant as much as we cut...
• Small Business Venture Capital Act - this great piece of BC legislation offers enhanced investment tax credits for investors in start ups. Clean tech companies get an extra boost of 'tax credit budget' under this budget.
• International Financing Activity Act - another piece of legislation for encouraging investment, the patents that can now be invested in now include wind, solar and tidal power.

Incremental change, but it is a nice start for greening BC's economy, and I suspect we will see even more when the BC Climate Action Plan is announced, and then again as legislation begins to rollout throughout 2008.

BC Hydro Announces 2007 Bioenergy RFEOI

In the first step towards a Bioenergy Call for Power, BC Hydro announced today that it is conducting a request for expressions of interest ("RFEOI") with regards to the use of wood fibre as a fuel source for power production in BC.  Although not a requirement for submitting an eventual bid, the RFEOI process does feed into the formation and drafting of the eventual call for power.  Now is the time to highlight concerns and interests.  

Interested parties can submit a RFEOI form which outlines a very high level business plan for producing Bioenergy.  This form asks interested parties to describe the company that would bid into the process, its major investors and to list some potential fuel sources.  These three issues alone of course raise a number legal issues regarding the appropriate corporate structure to use, efficient tax planning, contracting with fuel suppliers, whether or not an enviornmental assessment is required, what other permits are required, whether to look for private equity funding or to seek debt financing and whether to build a new plant or expand an existing one - which of course leads to more legal issues and so forth.  Although BC Hydro and the Minister of Forests have compiled information on Pine Beetle wood fuel supplies , they are not offering any advice on the above issues. 

The deadline for submission of RFEOI's is the 17th of April, and there will be an information session in Prince George, BC on the April 3rd.  In the meantime, there are a lot of issues to start considering.