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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.

Hydro-Québec and Mitsubishi Motor Sales of Canada to launch Canada's largest all-electric vehicle pilot project in the fall of 2010

Today, Hydro-Québec and Mitsubishi Motor Sales of Canada Inc. (MMSCAN) announced the signature of a memorandum of understanding that will lead to the launch of Canada's largest all-electric vehicle pilot project this coming fall. In collaboration with the City of Boucherville, Hydro-Québec will test the performance of up to 50 Mitsubishi i-MiEVs, the vehicle which recently won the Japanese Car of the Year award for "Most Advanced Technology" at the Tokyo International Motor Show.

The project, which is evaluated at $4.5 million, aims to test the cars under a variety of road conditions, including those due to Québec's harsh winters and is designed to study the vehicles' charging behaviour, the driving experience and overall driver satisfaction. The project is the first of its kind to include the participation of a car manufacturer, a public utility, a municipality and local businesses that will integrate the vehicles into their existing fleets.

Thierry Vandal, Hydro-Québec's President and CEO declared "This new pilot project is part of our action plan for the electrification of vehicles [...] it will allow us to advance our knowledge of the technology and its integration into our grid, which in turn, will help us plan the necessary charging infrastructure for homes, offices and public places."

The City of Boucherville was selected as the project's host municipality given its proximity to Hydro-Québec's research institute (IREQ), its role in Hydro-Québec's upcoming interactive smart zone trial and the diversity of its local businesses. The availability of a local Mitsubishi dealership to oversee the i-MiEVs' maintenance was also part of the selection criteria.

i-MiEV, which stands for Mitsubishi Innovative Electric Vehicle, is an all-electric, highway-capable, charge-at-home commuter car. Because the battery, the motor and other items are mounted out of the way beneath the floor, the i-MiEV seats four adults and offers surprising interior room and cargo space. Other i-MiEV features include excellent low-speed acceleration and a very low centre of gravity, which contributes to superior handling and stability. Moreover, the i-MiEV is extremely quiet.

"We are very proud to be leading the way to a greener, more sustainable future by developing environment-friendly vehicles fuelled by clean, renewable energy," said Koji Soga, President and CEO of MMSCAN. "Mitsubishi is a leader in electric car development and the i-MiEV represents the pinnacle of our green technologies. In the same sense, Hydro-Québec and the City of Boucherville are demonstrating their environmental leadership by participating in this unique initiative."

The electric vehicle pilot project comes ahead of the government of Québec's soon to be released 2010-2015 Electric Vehicle Action Plan, announced in June 2009 and which is expected to include incentives to get electric vehicles on Québec's roadways, as well as for car and component manufacturers to establish themselves further in the province.

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.

Québec applies California Standards to Light Vehicle GHG Emissions

On December 29, 2009, Ms. Line Beauchamp, Québec's Minister of Sustainable Development, Environment and Parks, announced that the Regulation respecting greenhouse gas emissions from motor vehicles, whose standards are equivalent to those in force in California, was to come into effect in mid-January 2010. Québec thus becomes the first Canadian province to apply North America's strictest automotive emissions standards and joins an ongoing North American movement that has seen some fifteen (15) American states, including a majority of the province's northeast neighbours, follow California's lead. The U.S. federal government has also announced its intention to adopt California-equivalent standards in 2012.

The Regulation applies to all cars and light trucks sold, leased or marketed in Québec from the 2010 model year onward and most notably sets out a table of gradually diminishing maximum GHG emissions standards for large volume manufacturer vehicles for model years 2009-2016. In addition, the Regulation establishes a system of credits and debits whereby beginning with the 2010 model year for large volume manufacturers and the 2016 model year for other manufacturers, a fee of $5,000 per vehicle equivalent is payable for any excess over the maximum emissions standards. All sums thereby obtained are paid into the province's Green Fund, established by section 15.1 of the Act respecting the Ministère du Développement durable, de l'Environnement et des Parcs.

At 40% of the province's total GHG emissions, of which nearly half are due to Light Vehicles, the transportation sector is Québec's most important emitter. The Regulation's coming into effect thus constitutes an important step towards realizing the goals of the province's 2006-2012 Climate Change Action Plan, and is a determinant factor in reaching its 2020 GHG emission reduction target as well.

It is expected that in addition to encouraging the large scale use of more energy efficient technologies in the transportation sector, such as electric or hybrid vehicles, the Regulation will foster a more rational use of non-renewable petroleum resources, thereby decreasing Québec's overall dependence on fossil fuels.

Joint Announcement of an Investment of up to $20 million to develop a Pilot Biorefinery in Thunder Bay

Today, the Honourable Tony Clement, Federal Minister of Industry, on behalf of the Honourable Lisa Raitt, Canada's Minister of Natural Resources, along with the Honourable Michael Gravelle, Ontario Minister of Northern Development, Mines, and Forestry, announced funding of up to $20 million to develop a forest biorefinery. The pilot project will test forest biomass for use in energy and next-generation forest products. The initial phase of the pilot project involves a feasibility study that will provide a complete analysis of the biorefinery's functions, including a pre-commercial process to extract wood fibres; identify market opportunities; assess output capacity of the demonstration plant; and determine full project costs.

An agreement was also reached by all partners to increase the research capacity and knowledge in the region, which will help Thunder Bay's reputation as a leading centre for bioeconomy research and innovation.

Of the project and agreement, Minister Gravelle was quoted as saying "The diversification of the forest industry in Ontario, including emerging innovative biofuel, is key to strengthening Ontario's forest sector now and into the future [...] we created the Centre for Research and Innovation in the Bio-Economy to bring business, government and communities together to develop new economic opportunities and help ensure a bright future for Northern Ontarians."

Located in Thunder Bay, the Centre for Research and Innovation in the Bio-Economy, or CRIBE, is a not-for-profit organization developed by the Ontario Ministry of Research and Innovation, which focuses on commercializing new forest products and technologies by working with leading researchers and industry. The province is currently investing $25 million in the CRIBE, which intends to attract world-class researchers and industry leaders to develop the next generation of renewable forestry bio-products.

Forest bio-products contribute an estimated $1 billion to Canada's economy and could one day be as important as the conventional forest economy.

GDF SUEZ Completes New Brunswick's Largest Wind Facility

GDF SUEZ has completed construction and achieved commercial operation at Caribou Wind Park, located 70 kilometers northwest of Bathurst, New Brunswick. The largest wind operation in the province, the 99 MW facility will provide all of its power to New Brunswick Power to fulfill a 20-year power purchase agreement with the utility.

Upon completion of the project, David Hay, NB Power's President & CEO was quoted as saying "NB Power is focused on minimizing its environmental footprint through a number of initiatives such as diversifying our renewable portfolio."

Achieving commercial operation of Caribou Wind Park, which is GDF SUEZ's first generation facility in New Brunswick, brings the company's North American renewable energy portfolio to 509 MW, more than 40 percent of which is wind powered generation. The company also owns and operates two wind farms, which hug the west and north capes of Prince Edward Island: West Cape Wind Farm, with a generation capacity of 99 MW, and Norway Wind Farm, which generates 9 MW. GDF SUEZ claims that over one third of its power operations in North America are carbon-free or carbon-neutral facilities.

Producing enough electricity to supply as many as 30,000 homes, Caribou Wind Park, via New Brunswick Power, will provide power to about 2 percent of the electricity needs in the province.

First Power Solar Project: Clean Energy for First Nations Communities

Today at the 2009 Solar Conference, the Government of Canada announced an investment of up to $1 million in the First Power solar project through its ecoENERGY for Renewable Heat program. In addition to the federal government's commitment, First Power is also being supported by Solar BC and several financial institutions, including the All Nations Trust Company.

The First Power project will support the installation of domestic solar water heating systems in up to 900 homes, with a focus on remote First Nations communities.

First Power, which will leverage millions of dollars in additional funding to complete its projects, is a partnership between Taylor Munro Energy Systems and the Centre for Integral Economics. This unique hybrid business is designed to support First Nations communities to gain access to and ownership of renewable energy and clean technologies. The project intends to replace diesel power generation by energy systems that deliver all the heat, light and power a community requires through renewables.

Making the announcement on behalf of Minister Lisa Raitt was Senator Linda Frum, who declared: "This investment will generate new economic activity in First Nations communities, while reducing energy costs and greenhouse gas emissions [...] Investing in projects like this will stimulate the growth of a domestic clean energy industry, create high-quality jobs for Canadians and help protect our environment."

Donna Morton, President of the Centre for Integral Economics added: "We believe that First Nations can take ownership of renewable energy and clean technology systems through orally taught training [...] Autonomous energy can give First Nations in Canada both a leading role in building green collar jobs and economic development that respects ancestors, elders and the future."

World's first concept tires made of renewable biomass arrive in Copenhagen in time for United Nations Climate Change Conference

The world's first concept demonstration tires made with BioIsoprene technology, a breakthrough alternative which aims to replace a petrochemically produced ingredient in the manufacture of synthetic rubber with renewable biomass, made their debut in Copenhagen, Denmark, this week. One tire will make appearances at several special events during the United Nations Climate Change Conference in Copenhagen (COP 15), while the other tire will be on display at a lounge in the common departure area at the Copenhagen International Airport throughout December 21.

The tires made with BioIsoprene are the result of a collaboration between Genencor, a world leader in industrial biotechnology and a pioneer in enzyme innovation and division of Danisco A/S, and Goodyear, one of the world's largest and well known tire companies.

Beyond tires, BioIsoprene offers a huge potential in all kinds of other applications where petroleum-based rubber products and adhesives. The market for isoprene could reach up to 11 billion pounds per year by 2012. Genencor plans to bring the technology to pilot stage within two years, followed by commercial production.

Philippe Lavielle, Executive VP of Business Development for Genencor declared: "We're building advanced biorefineries of the future through strategic collaborations, such as our work with Goodyear and our joint venture DuPont Danisco Cellulosic Ethanol, as well as public-private partnerships. By joining forces with other industry leaders and leveraging our cutting edge biotech capabilities, we're able to accelerate development and deployment of breakthrough technologies like BioIsoprene."

The development by Goodyear of its first concept tire manufactured using a bio-based alternative to the petroleum-derived raw material isoprene is a good example of how traditional industry has taken notice of the consumer's pursuit for more environmentally friendly products and of the growing importance of corporate social responsibility, a part of which results from lessening one's impact on the environment.

Government of Canada Funds Alberta Carbon Trunk Line Carbon Capture and Storage Project

Today, the Canadian government announced $63 million of project funding support for the Alberta Carbon Trunk Line (ACTL) Project, a fully integrated, large-scale carbon capture and storage (CCS) project in Alberta.

The Honourable Lisa Raitt, Federal Minister of Natural Resources declared that "This innovative project further demonstrates Canada's international leadership in carbon capture and storage technology."

The ACTL Project, led by Enhance Energy in partnership with North West Upgrading, will be capable of gathering CO2 from several sources in the Alberta's Industrial Heartland and transporting the CO2 to existing mature oil fields throughout South-Central Alberta. These oilfields will see significant increases in production as CO2 is permanently stored in the reservoir. The capture and permanent storage of CO2 will result in significant reductions in emissions of greenhouse gases in Alberta. The initial supply of CO2 will come from North West Upgrading Inc. and Agrium Inc. The ACTL Project has the potential to facilitate permanent storage of up to two billion tonnes of CO2 when operating at full capacity. The impact potential is equivalent to taking 2.6 million cars off the road annually.

"As industry looks for a way to effectively deal with their CO2 emissions by keeping them out of the atmosphere, we are offering a much needed solution - a safe and secure storage destination for CO2," said Susan Cole, President and CEO, Enhance Energy.

$30 million of the project is funded through the $1-billion Federal Clean Energy Fund, with the remaining $33 million coming from the ecoENERGY Technology Initiative. The Clean Energy Fund is advancing Canada's leadership on clean energy technologies and the reduction of greenhouse gas emissions from energy production. According to the Canada-Alberta ecoENERGY CCS Task Force report, CCS technology could allow Canada to cut its greenhouse gas emissions by almost three-quarters of Canada's current annual emissions.

World's First Osmotic Power Prototype Opens Today in Norway

Today Statkraft, one of Europe's leading renewable energy companies, opened the world's first osmotic power prototype just outside Oslo, Norway. The prototype generates power by exploiting the energy available when fresh water and seawater are mixed. Osmotic power is a renewable and emissions-free energy source that Statkraft has been researching since 1997 and that will be capable of making a substantial global contribution to eco-friendly power production.

The company's President and CEO, Bård Mikkelsen stated: "This new technology generates electricity simply by mixing water. New solutions to meet the climate challenges might be closer than we expect [...] we are proud to be presenting a renewable energy source which has never been harnessed until now."

The prototype, which was developed in cooperation with R&D organisations from many countries, will have a limited production capacity and is intended primarily for testing and development purposes. The aim is to be capable of constructing a commercial osmotic power plant within a few years' time.

The global potential of osmotic power is enormous, being estimated at between 1,600-1,700 TWh per annum, which is equivalent to 50 percent of the European Union's total power production. Osmotic power plants can, in principle, be located wherever fresh water runs into the sea; they produce no noise or polluting emissions and they can be integrated into existing industrial zones, for example, in the basements of industrial buildings.

The project has attracted a lot of international interest, and several foreign guests attended the opening, which was conducted by Her Royal Highness Crown Princess Mette-Marit of Norway.

CCEMC Announces Project Funding for 30 Clean and Green Projects

The Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") issued a press release this week that of the 223 projects submitted in its EOI process, thirty clean and green projects were being asked to submit Full Project Proposals under the CCEMC's 2009 Call for Proposals: Initial Full Project Proposal Stage.

The CCEMC has up to $120 million available for clean, green projects which address energy conservation and efficiency, greening energy production and carbon capture and sequestration. The CCEMC's Chair, Eric Newell, commented that "clean technologies will reduce emissions and enhance the economic and environmental value of energy resources - by supporting ideas and initiatives at the leading edge of the green economy, we will reduce emissions, and in the process, support green jobs".

The CCEMC's announcement demonstrates its commitment to technology, conservation and greening the energy mix. The projects and investments the CCEMC will be making, which are demonstrated in the projects being selected to move to the Full Project Proposal Stage, undoubtedly have collateral benefits associated with the establishment of green jobs and the development of the green economy.

Stay tuned - we'll keep you up to date on the CCEMC's process and the projects being selected to move forward.

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.

E.ON AG completes construction on the world's largest wind farm in Roscoe, Texas

German-based E.ON AG announced yesterday that it has completed construction on the world's largest wind farm, a 781.5-megawatt project in Roscoe, Texas, which is situated about 200 miles west of Fort Worth. The project has the capacity to power approximately 230,000 homes.

The project, which eclipses the capacity of the previous world record holder NextEra Energy Resources' nearby 735.5 megawatt Horse Hollow wind farm, comprised an investment in excess of $1 billion and coordination with more than 300 landowners over 100,000-plus acres of land.

The state of Texas, which is the United States' leader in wind power with an installed capacity of 8,335 megawatts, expects to more than double that figure over the next few years as developers add new transmission lines to connect remote areas of the state.

CN unveils on-line GHG Emissions Calculator to allow customers to assess transportation carbon footprint

CN today unveiled an upgraded on-line greenhouse gas emissions (GHG) calculator that estimates total carbon emissions for shipments across multiple modes of transportation.
CN, recognized as the most fuel-efficient railway in North America, provides the free on-line GHG calculator to the general public on its website. Upon entering basic shipment point-to-point information, the tool generates carbon-emission estimates using a combination of vessel, rail and truck, such as containers moving internationally from Asia to North American destinations along CN's network or domestic shipments using a combination of rail and truck or a single mode of transportation.
The GHG calculator allows manufacturers, importers, exporters, shippers, wholesalers or retailers to assess the carbon footprint of their shipments using single or multiple modes of transportation. Use of the GHG calculator to estimate GHG emissions makes clear the environmental advantage of rail over truck, which has been shown to be up to six times more energy-efficient, because rail consumes a fraction of the fuel to transport one tonne of freight one kilometre. In fact, CN claims that it can move one tonne of freight 197 kilometres on just one litre of fuel. Certainly a convincing argument to invest in the North-American rail system!
In addition to being a powerful environmental conscience-raising initiative, dissemination and use of such tools once again demonstrates the growing competitive advantage that reducing one's carbon emissions represents.

U.S. - Canada Clean Energy Dialogue - First Report

Yesterday Canadian Environment Minister Jim Prentice and U.S. Energy Secretary Steven Chu delivered an update on the two nations' clean energy dialogue (CED), which was first announced when President Obama met with Prime Minister Stephen Harper in Ottawa this past February. The release of the report coincided with Prime Minister Harper's meeting in Washington D.C. with President Obama at which energy was on the agenda and after which Harper reminded the U.S. at a press briefing that: "[...] Canada is by far the largest supplier of energy to the United States. And [it is] determined to be a continental partner in dealing with the [...] linked problems of climate change and energy security [...]".

The three key areas on which Harper and Obama had asked their respective delegates to work together on under the auspices of the CED were: (1) The development and deployment of clean energy technology; (2) the building of a more efficient energy grid, based on clean and renewable generation; and (3) expanding R&D into clean energy.

As part of the countries' collaboration on carbon capture and sequestration (CCS), the report states that the countries will expand on existing collaboration in CO2 injection and storage testing, share information from large-scale CCS demonstration projects such as the Weyburn-Midale project in Saskatchewan, in which carbon dioxide is piped from the Great Plains Synfuels plant in North Dakota to an oilfield operated by EnCana and injected for use in enhanced oil recovery. The report goes on to insist on working towards a consistent regulatory framework between the countries, which would include compatible CCS project rules, standards, and monitoring, as well as verification and accounting principles. Bilateral meetings between Canadian and American CCS experts are planned in mid-2010 and 2011 to share best practices and provide updates on joint activities. The two nations intend to form the "Canada-U.S. CCS Collaboration" under the existing Trilateral Energy Science and Technology Agreement, which also includes Mexico and hope to formalize the arrangement through an implementation agreement by the end of 2009.

As a result of the continued growth in electricity demand, collaboration between the two nations regarding the North American power grid will focus on the open exchange of information and electricity research, development and deployment (RD&D), reliability standards, cyber security and interoperability guidelines. Upgrades to the electric power grid will aim to increase its efficiency and promote connection to clean energy sources, as well as the use of clean energy technologies.

Joint commitments regarding Clean Energy RD&D are meant to boost economic opportunities for the CED partners and the two are to develop a "Clean Energy RD&D Collaboration Framework" and a technology roadmap which would allow both nations to meet their respective 2050 greenhouse gas reduction targets. The Framework and Roadmap would notably foster a unique North American market through common codes, standards and incentives, along with collaborative research and development, sharing of information , facilities and scientific infrastructure.

The Canadian Environment Minister and U.S. Energy Secretary are expected to release the next CED report in the spring of 2010, ahead of the next bilateral meetings.

Western Premiers Sign MOU on CCS Technology and Policy

The Premiers of Alberta, Saskatchewan and Manitoba held a joint cabinet meeting in Calgary on September 11, 2009. During the meetings, the provinces signed two key agreements, including a Memorandum of Understanding on Carbon Capture and Storage Technology and Policy, which "focuses on advancing co-operation on energy research and technology". Also highlighted were the concepts of "strengthening internal trade, innovation and international marketing, further developing Canada-U.S. relations and committing to improvin pension coverage for workers".

Of the MOU, Premier Stelmach remarked "collaboration in the West has best positioned our provinces to lead Canada both economically and in the development of clean energy technologies such as carbon capture and storage. By joining forces with B.C. and Saskatchewan, we can better develop and deploy this innovative technology, helping to meet climate change objectives and making us international leaders in this technology".

The second key agreement, the "Western Economic Partnership" is an interprovincial trade agreement designed to be the largest barrier-free trade and investement market in Canada.

The CCS MOU is the next in a series of steps Alberta has taken to advance CCS technology and deployment. Alberta announced its $2 billion CCS fund in 2008. The monies in the CCS fund are in addition to monies in the province's Climate Change and Emissions Management Fund, which is administered by the CCEMC. For the 2009 Call for Proposals, 30% of available funds may be used to advance CCS technologies and innovation.

When Canada goes to Copenhagen in a few months, this newest announcement by the Western provinces will be another point of climate change achievement.

We will continue to keep you posted about the Memorandum of Understanding among the three provinces. Stay tuned!

Self-Sustaining, Zero CO2 Emissions EcoPlus Home Project Breaks Ground in New Brunswick

Can a family of six live their everyday life without using fossil fuels for a whole year? That is the question that the Eco Plus Home project in Bathurst, New Brunswick, Canada, seeks to answer. The project intendeds to demonstrate how a family can live self sustained in a fully fitted showcase house for one year starting this September. The energy balances of the household consumptions will regularly be published on the EcoPlusHome website, which will also allow the family to share their experience with the public.

Commercially available building technology and household appliances for the showcase house are provided by the Bosch Group. These consist of an electric heat pump, a solar thermal system, a photovoltaic system as well as energy-efficient home appliances including an oven, a refrigerator, a dishwasher, a coffee maker, a washing machine and a dryer. The solar thermal system will generate heat and hot water from free solar radiation, while the heat pump uses geothermal energy. Although the heat pump needs electricity to run, the photovoltaic system will generate much more CO2-free electricity in the course of the year than the heat pump will consume. It is even planned to operate an electric car. Excess electricity will be fed into the public grid and withdrawn when needed. According to the project sponsors, it will be possible for the family to live comfortably in the house even through the harsh Canadian winter, when temperatures drop to minus 30 degrees, all the while still achieving a positive energy balance. CO2 emissions from the Eco Plus Home will be close to zero, whereas a conventional home produces an average of 8 tons of CO2 per year.

The home itself is being provided by Maple Leaf Homes, a Canadian manufacturer of prefabricated homes. When planning the showcase house, emphasis was placed on sustainability without loss of comfort and on the price-performance ratio. Once the experiment is over, similar houses will be offered in the U.S. and Canadian markets.

International Climate Funds Disburse Billions?

With Copenhagen just around the corner, developing governments are expressing an urgent need for greater financial contributions from industrialised nations. And how are industrialised nations going to help? One way is climate change funds. Most developing nations, (see our article on India and US protectionism) believe that the industrialised world should pay for their efforts to cope with and adapt to climate change.

It's an expensive proposition.

The world will need a "phenomenal amount of money" to change its energy supply from fossil fuels to cleaner sources and to adapt to climate change, states Yvo de Boer, head of the UN Climate Change Secretariat. Mr. de Boer estimates that beginning in 2020, the cost of reducing greenhouse gas emissions will be $200 billion a year with an additional $100 billion required for adaptation measures. (Adapation refers to people and business adapting to the effects of climate change in order to deliver a sustainable economy vs. mitigation, which is the reaction to rising emissions in order to limit future climate change - most regulatory frameworks address mitigation).

Hundreds of Billions? That's big money.

One of the topics of discussion at Copenhagen in December, will be which countries are going to contribute to climate funds to help developing countries address climate change and to what extent (ie.: how much) are they going to do that.
According to Point Carbon Data collected by the UK's Overseas Development Institute (ODI), has showed that six international multilateral and bilateral funds are responsible for approximately $3 billion in disbursements to more than 830 projects in the developing world which are aimed at reducing greenhouse gas emissions.

The largest contributor is the Global Environment Facility's (GEF) Trust Fund as it relates to Climate Change. The GEF is responsible for nearly $2.4 billion in disbursements to 591 programs. From its inception in 1994, the GEF has supported programs that minimize climate change damage by reducing the risk, or the adverse effects of climate change. On average 32 to 36 countries have contributed, and in its last replenishment in 2006, Canada contributed $131 million, making it the 6th largest contributing nation.

The German Government administered International Climate Change Initiative has disbursed $347 million to 128 international projects supporting climate change mitigation, adaptation and biodiversity projects with climate relevance. The fund intends to focus on countries with a high potential for emissions reduction in view of their significant and rising greenhouse gas emissions.

The Least Developed Countries Fund is managed by the GEF with an aim to address the special needs of the Least Developed Countries. From its inception in 2002, the Fund has aided the 48 Least Developed Countries through disbursements totalled at $47.5 million to over 60 programs. As of May 2009, 19 contributing nations have contributed to the Fund, with Canada being the 10th largest contributor.

The MDG Achievment Fund was established by the Government of Spain and the United Nations Development Programme and made operational in 2007. It has since disbursed $85.5 million to 16 programs aimed at reducing poverty and vulnerability in eligible countries by supporting improvements to environmental management and enhanced climate change adaptation. As of now, Spain and the US are the only two contributing nations to the Fund.

Mexico, Canada's partner in NAFTA, has proposed an "imaginative" climate fund, which aims to bridge the gap between developing and wealthier nations. We previously reported that the Mexican model proposes that countries pay into and are able to receive monies from a fund that may amount to $10 billion a year to help everyone, not just the developing world, adapt to the effects of global warming. Mexico, classified as a developing country by the UN, has suggested that all countries pay into the fund based on that country's economic output, population and fossil-fuel output. Not a bad idea. But still one which is probably subject to governmental budgetary restrictions.

Maybe a better way is the Alberta model. We've told you before about Alberta's climate fund initiative, the Climate Change and Emissions Management Fund (the "Alberta Fund"). The Alberta Fund is a different sort of animal from the aforementioned funds. Why? The Alberta fund, as we've mentioned before, is very unique. The funds mentioned above are funded by government. Because of a link with the compliance mechanism, the Alberta solution is an industry based and funded model. Once the money is paid into the Alberta Fund, the money is segregated and not subject to government allocation processes, unlike the international funds.

The Alberta Fund may only be used for purposes related to reducing emissions of greenhouse gases or improving Alberta's ability to adapt to climate change. Mr. de Boer says that the world is going to need a "phenomenal amount of money" to address climate change globally. The Alberta Fund will, over time, amount to a phenomenal amount - just think - in only one and a half years of compliance, contributions to the Alberta Fund are $122.4 million, with future yearly contributions anticipated to be as high as $100 million. If every jurisdiction had fund like that, imagine the dollars flowing into combating climate change!

And while the objects of the Alberta Fund are different than those international funds listed above, everyone's ultimate goal is the same. Implement effective solutions, bend the emissions curve and ultimately find an answer.

SDTC announces opening of new round of funding

Sustainable Technology Development Canada ("SDTC") will be accepting Statements of Interest ("SOIs") from September 2 to October 21, 2009.

SDTC was created to fund development and demonstration projects, which SDTC also describes as prokecst that take technologies out of the laboratory and prove them in real-world test situations. SDTC funding is not available for primary research and development or for initial proof of concept projects. Applicants must therefore demonstrate that:

• the proposed project is technically sound and undertaken by an applicant with the necessary technical, financial and management capacity;
• the proposed project will be undertaken in a collaborative and innovative manner;
• the new technology and related intellectual property will be diffused in a timely manner in the relevant market sectors; and
• the funding is necessary to ensure that the project proceeds in a manner to ensure broad benefits to Canadians nationally or regionally

Projects must pertain to one of the following primary sectors of Canada's economy:

• Energy Exploration, Production, Transmission and Distribution
• Power Generation
• Energy utilization
• Transportation
• Agriculture, Forestry and Mining
• Waste Management
• Cross-sectoral

To date, SDTC has provided over $376 million in funding to 154 projects. A breakdown by sector is posted here.

Note that SDTC is also running an open call for projects for its $500 million NextGen BioFuels Fund. To be eligible, projects must:

• be a First-of-Kind facility that primarily produces a next-generation renewable fuel at large demonstration-scale;
• be located in Canada;
• use feedstocks that are or could be representative of Canadian biomass; and
• have demonstrated its technology at pre-commercial scale.

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.

Update: the G8 Meeting of Environment Ministers

The First day of the G8 Meeting of Environment Minister's occurred yesterday. The agenda for Day 1 was "a Meeting with NGOs and Civil Society". According to the Press Release, the meeting touched on climate change, low-carbon technologies, biodiversity and protecting children's health. The press release confirms that the Ministers are aware that the coming months' work will focus on Copenhagen and that upcoming international environmental discussions must be used to identify a common planning platform between advanced economies and developing national.

The Italian Environment Minister, Stefania Prestigiacomo, concluded at the end of yesterday's session:

"As environment ministers, we must be capable of directing economic stimulus programmes towards the Green Economy and a New Green Deal, developing research and investment in new technologies and forms of co-operation with developing nations so as to ensure that these countries get access to both".

As mentioned in Monday's blog, technology seems to be emerging as a key theme of the meeting. The Ministers focus on climate change and new technology in their sessions today. More updates tomorrow.

G8 Environment Ministers Meeting in Italy - the Agenda

The 2009 G8 Summit will be held on the island of La Maddalena, Italy from July 8 to 10. In the months leading up to the Summit, the host country has organized a series of ministerial meetings, including the G8 Environment Minister's meeting, which is being hosted by the City of Siracusa on the Sicilian coast, from April 22 - 24.

Climate change and the preservation of biodiversity are the two main issues on the agenda in Syracuse. The goal of the Environment Minister's meeting is to "send out an important political message on biodiversity and to facilitate dialogue on the issue of climate change ahead of the Copenhagen conference in December of this year, where the debate is going to focus on the world's "post-Kyoto" setup".

The agenda for the meeting indicates that discussions with respect to new technologies to foster economic recovery and promote clean energy will be paramount. According to the official website, "the discussion is going to focus on how to promote clean energy technology in order to address the dual challenge of climate change and energy security".

In addition to the Ministers from the G8 countries, representatives of Czech Republic, in its capacity as EU duty president, China, India, Brazil, Mexico, Indonesia, South Africa, Australia, the Republic of Korea, Egypt and Denmark have also been invited to attend. Denmark is hosting the 2009 Climate Change Conference in Copenhagen in December.

The meeting will facilitate discussions between Canada, the United States, which has pledged a commitment to international co-operation on climate change, and non-G8 counties, such as India, China and Mexico, all of whom our Environment Minister, Jim Prentice, has indicated must be actively engaged on climate change issues and challenges.

The first round of meetings begins tomorrow. We will be closely monitoring the results of these discussions and will keep you posted.

Clean Energy Dialogue Finds a Friend in Steven Chu

The Clean Energy Dialogue between Canada and the United States was begun in February after President Obama visited Ottawa. Shortly after the historic meeting, our Environment Minister, Jim Prentice, met with his U.S. counterparts and others in Washington, D.C. to discuss how to move the Clean Energy Dialogue forward.

In interviews this week, Steven Chu, the U.S. Secretary of Energy was asked whether there should be international collaboration on energy research.

Dr. Chu's responded that "there is no reason why [energy research] should be compartmentalized" and said that it was particularly true for carbon capture and storage technology. Dr. Chu also commented:

"If countries actively helped each other, they would also reap the home benefits of using less energy. So any area like that I think is where we should work very hard in a collaborative way - by very collaborative I mean share all intellectual property as much as possible. And in my meetings with counterparts in other countries, when we talk about this they say, yes, we should really do this".

The focus of the Clean Energy Dialogue is the expansion of clean energy research and the deployment of clean energy technology. Both Canada and the United States realize that in order to address climate change new energy technologies must be created. It is not the responsibility of one country to go about this alone. It seems Steven Chu would agree.

Ontario launches $250 million Emerging Technologies Fund

On March 18, the Ontario Ministry of Research and Innovation announced the launch of a new Emerging Technologies Fund (the "Fund"). The Fund is intended to help emerging companies cross what the Toronto Star describes as the Valley of Death, the gap in financing that swallows many proven products before they can be commercialized. Companies "with a significant Ontario footprint" that have innovated in the clean technology, life sciences, digital media and information communication technology will be entitled to apply for funding.

The Fund does not provide grants. Rather it will match investments by venture capitalists and angel investors dollar-for-dollar on the same terms as the private sector investors. The Fund will therefore take an interest in the companies it funds. "The goal is for the fund to be self-sustaining through return on investment," according to a statement from Minister John Wilkinson, although he acknowledged that the Fund is also taking on the risk that some companies will fail.

As reported by the Star, venture capital funding for tech companies is very tight in Ontario, which has forced many entrepreneurs to look to the U.S. for financing. The economic downturn has made raising money anywhere that much more difficult. Many are hopeful that the half-billion dollars unlocked by the fund will help innovation flourish in Ontario.

The Fund appears to complement the federal government's Sustainable Development Technology Canada ("SDTC") funding program (see our recent posting about new SDTC funding). SDTC describes the innovation funding chain as having the following stages:

• fundamental research
• applied reserach
• technology development and demonstration (i.e., pilot to full scale demonstration)
• product commercialization and market development
• market entry

SDTC identified a huge funding gap at the technology and demonstration phase, which SDTC funding helps to address, and a smaller gap product commercialization and market development, which is underserviced by venture capitalists and angel investors. It remains to be seen whether the Fund will focus only on the commercialization phase gap or also help fill the demonstration phase gap.

The program details are still under development and are expected to be published by June.

Canadian Climate Change Themes

The Clean Energy Dialogue between Canada and the United States was sparked in February after the Prime Minister met with President Obama. The President's Climate Change advisor, Carole Browner, met with the Minister of Environment to discuss Canada's approach to climate change during those meetings. A couple of weeks later, Canadian Ministers, including the Minister of Environment, traveled to Washington to meet with their American Counterparts. Since then, Jim Prentice has been busy speaking about Canada's response to climate change. A number of themes are emerging from the Minister's remarks:

1. Environment Policies are Instruments of Economic Renewal and Security : The Minister confirmed in a speech to the Institute of Corporate Directors on March 6, that Canada's environmental approach is to "make our national environmental policies positive instruments of economic renew and of national development". Environment policy and energy policy are inexorably linked. Canada has a history of environmental stewardship and has a responsibility to maintain that what at the same time creating wealth and building industry. Maintaining environmental integrity while enhancing our North American energy security is going to be a priority for the Federal government. We will start to see more overlap between Energy policy and Environmental policy.

2. Canada/U.S. Co-operation on Climate Change: This is no surprise. Since the President's visit in February, both the Prime Minister and the Environment Minister have said that Canada and the U.S. need to work together closely to address climate change. Minister Prentice has confirmed that Canada and the U.S. must work closely to build a new carbon economy and to ensure that "our policy and regulatory frameworks are coherent and supportive" and has called the relationship with the United States crucial in the context of the transformation to clean energy. There are a number of subthemes:

(a) Cap and trade: In a speech on February 27, Minister Prentice confirmed that Canada has committed to pursue a North-America-wide cap and trade system and that we will "work closely with the new U.S. administration to build the North American low-carbon economy". He is optimistic that Canada and the United States will arrive at a workable solution that defines "common or similar carbon reduction targets, that creates similar mechanisms to allocation emissions and...provides for the trading of credits on a North American basis".

(b) Fuel efficiency: Minister Prentice told the CBC on March 1 that Canada is prepared to go in the same direction as the United States and that he supports one fuel efficiency standard for the two countries.

(c) New technologies: The Minister remarked that Canada and the United States have a strong and shared interest in promoting the development and deployment of clean energy technologies. The Clean Energy Dialogue will include discussions about Carbon Capture and Storage, an interconnected electricity grid, nuclear energy, wind, solar, hydro and other "more remote renewable sources of energy". Canada's action plan has Canada "on course to reduce domestic greenhouse gas emissions by 20% by 2020 and by 60 to 70% by 2050". In order to achieve these goals, Canada must invest in new technologies.

3. Canada Must be a Leader : Canada is one of the top ten energy consumers in the world. Our challenge is to "stand among the world's elite as a clean energy superpower" and to demonstrate that Canada is a user of clean energy. The Minister told his March 6 audience that the government is "committed to ensure that Canada is actively and constructively engaged in the [Clean Energy Dialogue]" and that it "intends to be a leader and a responsible partner in defining the way forward".

4. International Agreement : both the United States and Canada seem to be setting their sights on Copenhagen in December and both countries believe that in order for climate change policies to be effective domestically, international co-operation is required. Canada's climate change policy is "based on a clear desire to include all of the major emitters in the world". Major emitters would include China and India and other developing nations.

5. Climate Change is Everyone's Responsibility : Although the impetus for climate change has to come from government with active participation and engagement of industry, the responsibility extends to all citizens "from all walks of life". Canada's climate change strategy will involve "how we consume and conserve energy in our homes and in our offices". In his February 27 speech, Minister Prentice remarked:

Thirty years ago, drunk driving was tolerable. It's not anymore. Twenty years ago, it was acceptable to drive without a seatbelt. It's not anymore. Up until a few years ago, Canadians could smoke anywhere in public. They can't anymore. Attitudes shifted. Behaviours changed. The same needs to happen with the environment.

Watch for these themes to start emerging in other departments of the federal government. Climate change is one of the most important issues facing governments today. We'll keep you posted on new developments in Canada. Stay tuned.

And the Clean Energy Dialogue Begins

Our Environment Minister took a trip to Washington to meet with U.S. legislators and to promote the Clean Energy Dialogue this week.

On Monday Minister Prentice met with Senator John Kerry, who is the head of the Senate foreign relations committee. On Tuesday, the Minister met with Energy Secretary Steven Chu, Todd Stern, the special envoy on climate change and Lisa Jackson, the new head of the Environmental Protection Agency.

The Minister's discussions this week in Washington focused on the "expansion of clean energy research and the deployment of clean energy technology".

The Canadian press seemed to expect that the discussions would focus on Alberta's oilsands and not research and technology and the Clean Energy Dialogue. However, the Minister confirmed that the oilsands came up only "tangentially" in his discussions with the American legislators, including with Henry Waxman, the new chairman of the house energy and commerce committee and an ardent environmentalist.

Canada is the largest supplier of energy to the United States. Emissions from the oilsands, which are the subject of some "high minded hypocrisy" this month, are 50-70 times less than the aggregate of the emissions from coal plants in the United States.

America's challenge is clean coal; Canada's may be clean oil. But given that the oilsands were not, by the Minister's account, the focus of his discussions with legislators in Washington, perhaps both Canada and the U.S. recognize that neither country is going to gain any ground by pointing fingers. The right approach is to meet these challenges by looking forward and finding solutions in research and the development of new clean technologies. Isn't that what the Clean Energy Dialogue is for?

President Obama in Canada: What Just Happened and What Does it Mean

Wow! What is must have been like to have been in Ottawa today when Prime Minister Stephen Harper and President Obama had their much anticipated meeting. How lucky those people happened to be in the Market when the President stopped by for a Beavertail or who cheered on as the he waved to the crowds gathered on Parliament Hill and Wellington Street. What a cool day to be in the capital.

Although the leaders' agenda touched many matters, economy, climate change & the environment and national security (I see a theme here...) were at the centre of comments made by both the President and the Prime Minister after their meeting.

Prime Minister Harper said that the two countries have begun a "Clean-Energy Dialogue", which will see senior officials from both sides of the border working together on the development of clean energy, science and technologies. If you've been paying attention to the comments from our Environment Minister, this will come as no surprise. Although the President confirmed that the U.S. must firm up its own environmental policies before entering into binding agreements with Canada, he said that the "dialogue will move us in the right direction".

Why? Because Economy = Environment/Climate Change = National Security and both the U.S. and Canada recognize that. The goal of the Clean-Energy Dialogue will be to position the U.S. and Canada at the forefront of global leadership on "clean energy" and climate change.

How? By focusing on:

1. Technology
2. Innovation
3. Energy research
4. Carbon capture and storage
5. Renewable Energy

The governments of both countries will have to collaborate to pursue technology and innovation to fight climate change, stimulate the economy and preserve national security. The Clean-Energy Dialogue will bring private enterprise and science together with government funds to develop new technologies to combat global warming and lead the world from economic crisis.

Seems to me that huge dollars will be involved and government intervention on both sides of the border will be required in order to put the Clean-Energy Dialogue partners on the road to the Green Economy. Right now, that road is leading to Copenhagen.

Budget 2009 - Transformation to a Green Energy Economy

The Conservative Government's 2009 Budget promises billiions of dollars in government spending to help the country ride out the global economic downturn. With the recent U.S. announcements about climate change, did Canada give due consideration to climate change and the environment in the Budget?

The Budget allocates $1 billion dollars to support clean energy technologies. Spread over five years, this includes $150 for research and $850 million for the development and demonstration of promising technologies, including large scale carbon capture and storage (CCS) projects. According to the budget, this support is expected to generate a total investment in clean technologies of at least $2.5 billion over the next five years.

Federal allocations of money to carbon capture and storage are in addition to the Alberta government's $2 billion fund to kick start carbon capture and storage technologies. Between Federal and Alberta monies, funding for CCS could be nearly $3 billion.

In light of the potential of CCS as a means of reducing emissions, the Government has also announced plans to consult with stakeholders to identify specific assets used in CCS which may be eligble for accelerated capital cost allowance. This tax incentive will be used to actively promote investments in certain clean-energy generation techologies.

Another $1 billion dollars will go to the Green Infrastructure Fund over the next five years. This fund will be allocated based on merit to support green infrastructure projects on a cost-shared basis. The Budget states:

"Targeted investments in green infrastructure can improve the quality of the environment and will lead to a more sustainable economy over the longer term. Green infrastructure includes infrastructure that supports a focus on the creation of sustainable energy. Sustainable energy infrastructure, such as modern energy transmission lines, will contribute to improved air quality and lower carbon emissions."

Monies for CCS and the Green Infrastructure Fund are in addition to other funds in the Budget allocated in the area of climate change and Canada's environment, including:

• $1.3 billion over two years to support renovations and energy retrofits that will make Canada's social housing stock more energy efficient, to be split on a 50/50 cost-shared basis with the provinces;
• $300 million over two years to go to the ecoENERGY Retrofit program to support an additional 200,000 energy-saving home retrofits;
• $85 million over two years for key Arctic research stations, and $2 million over two years for a feasibility study for a world-class Arctic research station;
• $80.5 million over the next two years to manage and assess federal contaminated sites, which will facilitate remediation work totaling an estimated $165 million over the next two years and contribute to an improved environment as well as employment opportunities;
• $75 million for national parks; and
• $10 million in 2009-2010 to improve the government's annual reporting on key environmental indicators such as clean air, clean water and greenhouse gas emissions.

All of these initiatives demonstrate the Government's commitment to the environment - and these are Federal initiatives. Provincial budgets, including Alberta's, are coming soon and will include their own environmental and climate change initiatives. We will be keeping a close eye on them.

Regrettably, Canada defied 2008 cleantech investment trends

2008 was a record year for global cleantech venture investment. According to Cleantech Group, LLC, venture investment in clean technology in North America, Europe, China and India totalled $8.4 billion, up 38% from $6.1 billion in 2007. Nicholas Parker, Executive Chairman of Cleantech Group, described 2008 as "a quantum leap in talent, resources and institutional appetite for clean technologies", and concluded that "now, more than ever, clean technologies represent the biggest opportunities for job and wealth creation.”

However, Canada appears to have defied the trend in 2008. Despite the global growth, cleantech investment in Canada plummeted by 58% from 2007 to a mere $159 million in 14 disclosed rounds. This retreat by venture investors occurred despite ongoing support from the government, for example through Sustainable Development Technology Canada whose latest round of funding pumped $57 million into 19 cleantech projects.

Many commentators are offering their predictions for the coming year: for example, see Cleantech Group and Toronto Star columnist Tyler Hamilton. Both share a cautious optimism about the level of venture investment in 2009, but concede that even the cleantech sector, which has boomed for years, may contract slightly in the wake of the financial crisis.