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winter 2009energy’s new environment
Searching for common ground
A Q&A with Green Party of Canada Leader Elizabeth May
Page 12
improving air qualityrecommendations in new report could impact energy industry Page 6
“dry cleaning” the oilsandsWater usage is not the real problem behind reclaiming tailings Page 8
Leaving no traceimperial will draw on cold Lake experience for Kearl mine reclamation Page 10
President & CeO Bill Whitelaw [email protected]
PuBlisher Agnes Zalewski [email protected]
AssOCiAte PuBlisher And editOr Chaz Osburn [email protected]
editOriAl direCtOr stephen Marsters [email protected]
editOriAl editorial Assistance SamanthaKapler,MarisaKurlovich,
KelleyStark [email protected]
Contributors LyndaHarrison,JamesMahony,ElsieRoss
CreAtive Production, Pre-Press, MichaelGaffney and Print Manager [email protected]
Publications Manager AudreySprinkle [email protected]
Publications supervisor RianneStewart [email protected]
interim Art director KenBessie [email protected]
Creative services supervisor TinaTomljenovic [email protected]
senior Graphic designer BirdeenJacobson [email protected]
sAles director of sales RobPentney [email protected]
sales Manager—Magazines MauryaSokolon [email protected]
Account Managers RhondaHelmeczi [email protected]
For advertising inquiries please contact [email protected]
Ad traffic Coordinator—Magazines ElizabethMcLean [email protected]
MArketinG And CirCulAtiOn senior Marketing Coordinator AlainaDodge-Foulger [email protected]
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Marketing designer CristianUreta [email protected]
OFFiCes Calgary: Calgary-North: 816-55AvenueN.E., 300,5735-7StreetN.E., Calgary,AlbertaT2E6Y4 Calgary,AlbertaT2E8V3 Tel:403.209.3500Fax:403.245.8666 Tel:403.265.3700Fax:403.265.3706 Toll-free:1.800.387.2446 Toll-free:1.888.563.2946
Edmonton:6111-91StreetN.W.,
Edmonton,AlbertaT6E6V6Tel:780.944.9333Fax:780.944.9500
Toll-free:1.800.563.2946
AirWaterLandisownedbytheJuneWarren-Nickle’sEnergyGroup.GSTRegistrationNumber826256554RT
ISSN1207-7333
©20091062814GlacierMediaMadeinCanada
air6 improving air quality Recommendationsinnewreportcouldimpact
energyindustry
byLyndaHarrison
land10 leaving no trace ImperialwilldrawonColdLakeexperiencefor
KearlMinereclamation
byElsieRoss
feature12 searching for common ground AQ&AwithGreenPartyofCanadaLeader
ElizabethMay
byChazOsburn
departments3 Editor’snote4 Envirobytes14 Alternativeenergy
15 Renewableenergy16 Justthefacts
water8 “dry cleaning” the oilsands Waterusageisnottherealproblembehind
reclaimingtailings
byJamesMahony
2|airwaterland
contents
the Daily Oil Bulletin, a sister publication to Air Water Land, car-ried an interesting story in late October. It was based on a Deutsche Bank report that predicts world oil demand will fall as automobiles become more efficient.
Titled The Peak Oil Market, the analysis concluded that world oil demand will reach a peak in 2016 and then begin a downward spi-ral due to increased efficiency—and particularly the rapid growth in electric cars.
The report said “disruptive technology,” such as hybrid and elec-tric cars, is likely to have a far greater positive impact on oil efficiency than the market currently expects.
As oil supply peaks, so will demand, the story continued. But some fundamental mismatches in such areas as price mechanics of supply and demand would likely require a final upward price spiral that will serve to break U.S. oil consumption short term and shift it long term toward greater efficiency.
“U.S. demand is the key,” the report said. “It is the last market-priced, oil inefficient, major oil consumer. We believe [President Barack Obama’s] environmental agenda, the bankruptcy of the U.S. auto industry, the war in Iraq, and global oil supply challenges have dovetailed to spell the end of the oil era.”
On the surface, all of this makes sense. Think of all the vehicles that burn fossil fuels that will be taken off the roads.
But the more I started to think about it, the more I began to wonder. What about the infra-structure that will be needed to make sure all of this happens? Electric cars will surely need recharging stations. (That leads to another question: where will all the extra electricity come from to power these vehicles—perhaps from coal-fired generating plants?)
And though the report centres on America’s thirst for crude, we need to step back and take into account what’s happening in the rest of the world. I’ve personally visited Chinese auto fac-tories and I can tell you they are serious about selling cars in that country. While auto sales in the United States may be in the dump, they’re increasing at a head-spinning rate there. Add in India and sales from other developing countries and, well, you get the picture.
Nope, sorry to be a skeptic, but I think the world will still demand oil well past 2016. So that means that problems like reducing water use in the bitumen extraction process, as outlined in this issue’s Land story (“Dry cleaning” the oilsands on page 8, will continue to challenge us in the years ahead.
On another, unrelated note, this marks the last quarterly issue of Air, Water, Land. But don’t worry—we’re not going away permanently. Air, Water, Land is being retooled for 2010.
As they say on TV, stay tuned for more.� ~�Chaz�Osburn
always the skeptic
airwaterland.ca | 3
editor’s note
envirobYtes
air
land
The oil and gas industry, province of British Columbia, and communities in that province have created an initia-tive that is designed to ease tension between industry and residents.
Called Living Together—Working Together, the vol-untary package of programs will act as a blueprint to improve industry and resident rela-tions, according to the province.
“While the industry brings jobs, infrastruc-ture, and economic development to the area, it also creates increased traffic, dust, noise, environmental, and maintenance concerns,” said Blair Lekstrom, B.C.’s minister of Energy, Mines and Petroleum
Resources. “These programs and regu-lations will help to address these issues that are so impor-tant to residents.”
Gary Leach, executive director of the Small Explorers and Producers Association of Canada, says his group has been engaged with the B.C. government as it developed its voluntary guidelines and he thinks the joint initiative will pay dividends.
“As oil and gas activity promises to increase significantly in northeastern B.C. it only makes sense that industry works cooperatively with local residents and communities to find ways to address their concerns and minimize, where possible, the impact of resource develop-ment,” he says.
manufacturing oPPortunitieS ahead
The Canadian Wind Energy Association (CanWEA) and Cana-dian Manufacturers & Exporters have cre-ated a strategic part-nership to explore Canadian manufac-turing opportunities in the growing global wind energy industry.
“Wind energy rep-resents a significant
opportunity to create new green jobs in Canada’s manufac-turing sector,” said CanWEA president Robert Hornung. “The more than 8,000 parts that go into a wind turbine require highly skilled trades and quality manufacturing facili-ties, both of which
are in abundant sup-ply in Canada.
It is estimated that between now and 2020, more than two million jobs will be created in the global wind energy industry, many of them in manufactur-ing and export.”
The two asso-ciations will partner
to produce a co-branded market report that explores and outlines the opportunities, challenges, and actions required to ensure that Canada earns its share of new wind energy manufacturing and component production.
eaSing tenSionS
4 | airwaterland
air
Canadian companies now see more oppor-tunities than risks from climate change, according to a sur-vey released this fall
by the Conference Board of Canada.
“Even in an uncer-tain economy, more companies are broad-ening and deepening
their climate change activities,” says Len Coad, director, Environment, Energy, and Technology of the Conference Board.
CLIMATE CHANGE OPPORTUNITIES ABOUND
land
New infrastructure to meet the world’s appetite for energy during the next decade could be sig-nificant, the National Energy Board predicts.
“In the last decade, rising crude oil prices, robust global crude oil demand, and oil-sands growth have resulted in appli-cations to expand existing crude oil pipelines and to
construct new ones,” points out board chair Gaétan Caron. Capacity will increase greatly with the approval of the Keystone and the Alberta Clipper pipe-line projects.
The natural gas supply picture is anticipated to change by 2020 with declin-ing conventional production being offset by tight gas, shale gas, coalbed
methane, and fron-tier supplies. Some of these, especially the shale gas develop-ments are located in new regions that would require infra-structure to connect to markets, accord-ing to a board report called Canada’s Energy Future—Infrastructure Changes and Challenges to 2020.
Natural gas-fired power generation is
expected to increase significantly from 50,809 gigawatt hours in 2008 to 82,670 gigawatt hours in 2020, the report says. That will require access to additional gas sup-ply and improved flexibility through greater storage and service enhancements to meet the variable demand of the elec-tricity market.
AS ENERGY NEEDS RISE, SO WILL NEED FOR INFRASTRUCTURE
water
Recently released guidelines for a plan designed to strike a better balance between economic, environmental, and social objectives in Alberta’s oilsands region will look at three levels of oil-sands production and their effects on the environment.
Terms of ref-erence for the Lower Athabasca Regional Plan outline potential levels of production from the oilsands and identify
provincial policies and guidelines that will be inte-grated into the regional plan.
The Regional Advisory Council will examine these poli-cies and guidelines,
and will present its findings to the Alberta government, which will consider that advice as it creates a regional plan for the Lower Athabasca region, expected in 2010.
air
ONTARIO COAL-POWERED PLANTS CLOSING
SEEKING A BALANCE
Ontario is mak-ing progress on Canada’s largest climate change initia-tive as Ontario Power Generation (OPG) prepares to close four coal-fuelled power units next year—four years ahead of the 2014 target.
OPG will close two of eight units at its Nanticoke sta-tion near Simcoe and two of four units at its Lambton plant near Sarnia by October 2010. Together these plants
represent about 2,000 megawatts of generation capacity.
With the shut-down of Lakeview Generating Station in 2005, Ontario’s in-service coal capacity will be reduced by 40 per cent since 2003.
Since 2003, more than 7,000 mega-watts of new and refurbished generation have come online to ensure reliabil-ity, including over
3,700 megawatts of new natural gas- fired plants and over 1,200 megawatts of renewable energy.
airwaterland.ca | 5
Improving air qualityRecommendations in new report could impact energy industryby Lynda Harrison
A new report to help update Alberta’s guide for a long-term approach to air quality management contains 14 recommendations to improve Alberta’s air quality. But while none are specific to the oil and gas indus-try, some could potentially affect it.
That’s the assessment by an industry representative of the Clean Air Strategic Alliance (CASA).Recommendations in the report, Clean Air Strategy for Alberta, that might affect the oil and gas industry are
for: the promotion of new technologies, more focus on prevention versus control, and more accessible and trans-parent information on air quality from industry as a whole, says Al Mok, director of environment, health, and safety at Suncor Energy Inc. and CASA’s industry co-chair.
“Right now, we’re mostly on the control side,” says Mok, who also represented the Canadian Association of Petroleum Producers on the team. “If we can eliminate the production of some pollutants, then we don’t have to worry about the control. So that’s the philosophical direction that we’re heading.”
There has been a fair bit of discussion on focusing less on industry—the “point source” of emissions—and more on end usage, he says.
“This recommendation says we should also look at the non-point sources such as transportation [and] maybe unregulated emissions such as feedlots and that sort of thing, which have a huge impact on air quality as well. So if anything, we’re not diverting but [are] more inclusive of emissions, not just from the oil and gas industry.”
CASA defines a point source as a stationary location or fixed facility from which substances are discharged; for example a smokestack. It defines a non-point source as a pollution source that is not recognized to have a single point of origin. Common non-point sources are agriculture, forestry, urban, mining, construction, and city streets.
Alberta has achieved considerable success in understanding air quality and managing emissions since the rec-ommendations in the 1991 Clean Air Strategy were implemented, according to CASA. These successes include substantial reductions in industrial emissions such as reductions in solution-gas flaring and venting, and man-agement plans to address issues related to particulate matter and ozone in the province’s most populated areas.
Nevertheless, there are significant and growing pressures on Alberta’s air, and a new Clean Air Strategy is needed, it says, because:
1. Continuing industrial and population growth could compromise the gains made since 1991. The increased pace of development in the oilsands, ongoing development of Alberta’s conventional energy reserves, an influx of peo-ple to the province, and strong urban growth all have the potential to affect air quality, in some areas more than others. Development in the energy sector has spurred substantial growth in related industrial activities, as well as a significant increase in infrastructure requirements. All of these activities are sources of air emissions.
2. Some aspects of air quality management need renewed attention, such as preventing and controlling emissions from non-regulated and non-point sources—so-called “area” sources, such as residential and commercial heat-ing, transportation, and agriculture. Emissions from these sources have increased since 1991. While area sources were recognized in the original Clean Air Strategy, responses to this complex issue are still needed; to succeed, adjustments to the current governance model will likely be required.
3. Public interest in health issues remains high, and air quality continues to be a health concern in some regions. Considerable work is underway to gain a better understanding of cumulative effects and the need for limits to protect human, animal, and ecosystem health.
4. In the last few years, the government of Alberta has made a number of commitments that have implications for how air quality is managed. These include a desire to improve the integration of decision making to ensure align-ment and consistency across government departments and agencies; an interest in shared governance and shared responsibility; and the creation of several new provincial resource management strategies, at least some of which will influence air quality management. (Examples are the Provincial Energy Strategy, Climate Change Strategy, Land-use Framework, and Water for Life.)
Improving air quality
awlPhoto: Joey Podlubny
air
airwaterland.ca | 7
W ater usage is a topic that goes to the root of Canada’s oil-sands industry, underlying many related environmental objec-tions. So it is little wonder that many initiatives in the oilsands
today are geared towards reducing water use in the bitumen extrac-tion process.
The prospect of one day finding an alternative to water in that pro-cess is as of yet only a concept, but it has its advocates, including scien-tist Murray Gray, director of the Imperial Oil-Alberta Ingenuity Centre for Oil Sands Innovation (COSI), based in Edmonton.
Established in 2007, COSI is a collaboration between Alberta Ingenuity, the University of Alberta, Imperial Oil, and the Alberta Energy Research Institute. Located at the University of Alberta, COSI focuses on two areas of research: new oilsands extraction methods to reduce water consumption and improve tailings management and new upgrading technology to remove contaminants from the oilsands and improve upgrading.
In discussing the topic, Gray raises the issue that has long challenged some of the industry’s best minds: how to deal with mine tailings.
tAiLings troUBLeDespite industry’s efforts and improvements in tailings treatment, there is as of yet no satisfactory method of extracting bitumen from oilsands without producing tailings. In some cases, it will take years for the finer particles, including clays, to settle out completely. In the meantime, tail-ings ponds continue to grow.
According to Gray, a specialist in biomedical and chemical and mate-rials engineering and a Canada Research Chair in Oil Sands Upgrading, two paths are open to industry. Either improve the current technology—figure out what to do with tailings, in other words—or look at other pos-sible solutions, including finding an alternative to water. For COSI, the latter poses research challenges, since any workable water alternative must meet a number of strict criteria, environmental included.
COSI is considering several solvents, mainly hydrocarbons, each of which has its drawbacks. A problem with some solvents is recoverability, or what might be called “recycle-ability.”
When it comes to economics, recoverability greatly affects how cost-effective a particular solvent can be, Gray says. During the extraction process, if a solvent’s losses are minimal, it could be a potential candi-date, even if expensive. On the other hand, if recoverability is low, even a cheap solvent would become costly in the long run.
After recoverability, a solvent’s cost may be the next most important issue, although any solvent—however cheap—will likely be more valu-able than the bitumen itself, Gray says. He rates a solvent’s ability to recover bitumen during extraction as the most important criterion of all.
“By the time you’ve gone through the operation and dug up the ore, you want to get good recovery of the bitumen,” he says. “Solvents that don’t [do so] are not suitable.” That’s true no matter how friendly the solvent might be to the environment.
“If you can only take 30 per cent or 50 per cent of the bitumen out of the ore, it’s unacceptable,” he says.
“dry cleaning” the oilsands
Water usage is not the real problem behind reclaiming tailingsby James Mahony
8 | airwaterland
Another advantage of solvent over water is that it would entirely avoid the problem of tailings. For industry critics, that fact alone might be viewed as a critical advantage for any oilsands developer, given the magnitude and the potential longevity of the current tailings challenge.
wrong FoCUs“In my opinion, there’s been too much focus on the freshwater use issue,” Gray says. “It distracts people from the real challenge, which is putting the tailings back into the mine as quickly as possible.” Indeed, the tailings and their constituent clays are the root of the real problem, he says. “Those wet, sloppy clays are a huge challenge, in my view.”
Under a different model, using solvents for bitumen extraction would amount to “dry cleaning” the oilsands, some say. The analogy is not very far off the mark, according to Gray. A dry cleaner’s task, after all, is to clean the garment, yet leave no trace of cleaning solvent. Similarly, a solvent should be able to separate bitumen from sand and clay, leaving minimal residue behind.
The latter is a key requirement on Gray’s list, and one reason why some common solvents have been ruled out for the oilsands. Nevertheless, that leaves a range of possible alternatives, including other hydrocarbons.
Alcohol, for example, was among the solvents COSI scientists ini-tially considered, in part for its relatively benign environmental impact. But the cost of the fluid could be an issue, as could its suitability for bitumen recovery.
A common solvent that appears to offer more potential is naph-thalene, or naphtha, also known as camp gas. One benefit of naph-tha is that it will biodegrade under “reasonable conditions,” says Gray, although he does not address the time frame for such a process.
When it comes to recovering bitumen, naphtha performs relatively well. The problem lies in recovering the fluid after the extraction pro-cess. In that regard, it’s “not so good,” Gray says. “Naphtha is one of the cheapest possible solvents, but it’s a little bit too heavy.”
One option would be to alter naphtha, in effect tailoring its prop-erties to suit bitumen extraction better. That might be achieved by fur-ther processing until the solvent has the desired properties, although doing so would increase its final cost. Another option would involve combining different solvents, possibly including naphtha, to gain the same properties.
So far, there is no sure bet, nor even a short list of likely solvents. At the same time, COSI scientists are finding that the nut they’re trying to crack, involving a combination of bitumen, clay, solvent, and water, is in many ways unique, meaning there is little research to guide the way forward.
At the same time, in addition to their own research at COSI, Gray and his team are looking for possible linkages to other scientists who have researched similar challenges elsewhere in the world.
Says Gray: “We’re hoping to find research institutes that are looking at related problems that we can learn from. To our knowledge, though, no one has licked the problem.” awl
Tailings ponds are a common sight near oilsands operations north of Fort McMurray.
Photo: Joey Podlubny
airwaterland.ca | 9
water
As� Canadian� oilsands� mining� projects� face� growing� scru-tiny� from� environmentalists� around� the� world,� Imperial�Oil� Ltd.� will� apply� its� 40� years� of� continuous� improve-
ment� experience� at� Cold� Lake,� using� advanced� tech-nologies� to� minimize� the� environmental� impacts� of� its�first� oilsands� mine� at� Kearl,� according� to� the� company’s��top�official.
“We�are�absolutely�committed�to�finding�innovative�and�inte-grated�solutions�to�delivering�reliable,�environmentally�respon-sible� energy� from� the� oilsands� resource,”� says� Bruce� March,�president,�chairman�and�chief�executive�officer.�
“It�is�our�firm�belief�that�Canadians�do�not�have�to�choose�between�energy�security,�economic�well-being,�and�a�clean�envi-ronment.�It�is�not�an�either/or�proposition.”
Reclaiming�land�and�protecting�habitat�are�key�objectives�for�Imperial�at�the�Kearl�site.�The�$8-billion�project�has�a�targeted�start-up�date�of�late�2012�for�its�first�110,000-barrel-per-day�phase.
While�environmental�groups�have�been�especially�critical�of�the�effect�of�oilsands�mining�projects�on�land�and�habitat,�March�emphasizes�that�the�industry�is�committed�to�reclaiming�land�that�it�disturbs.
“Not�only�are�we�personally�committed�to�reclaiming�the�land,�it’s�the�law,”�he�says.�“In�addition,�oilsands�mining�opera-tors�are�required�to�post�hundreds�of�millions�of�dollars�in�finan-cial� security� to�assure�the�government�these�obligations�are�being�met.”
Kearl�includes�a�major�commitment�to�progressive�land�recla-mation�where�land�used�early�in�the�project�life�will�be�reclaimed�when�the�mine�enters�new�areas.�This�includes�fully�engaging�local�stakeholders�in�reclamation�planning�so�that�the�reclaimed�lands�will�provide�improved�wildlife�capabilities�and�will�be�acces-sible�for�traditional�land�use�by�the�local�community.
A simPLe goAL“Our�goal�is�very�simple:�in�75�to�100�years,�we�want�no�evidence�that�we�were�ever�there,”�March�says.
From�the�outset,�the�key�to�the�development�of�the�oilsands�has�been�continuous�improvement�and�use�of�new,�more�effi-cient,�environmentally�effective�technologies�to�produce�the�oil-sands�resource,�March�told�a�luncheon�crowd�in�the�fall.
The�history�of�Imperial’s�Cold�Lake�heavy�oil�operations�is�a�good�example�of�this�continuous�improvement�principle,�he�said.�At�the�time�the�company�acquired�its�heavy�oil�leases�in�the�early�1960s,�based�on�then�available�technologies�there�was�little�reasonable�expectation�that�the�resources�could�ever�be�developed�commercially.
However,�starting�with�the�first�pilot�project�in�the�late�1960s,�Imperial�worked�to�develop�the�technologies�that�would�enable�the�recovery�of�bitumen�at�acceptable�costs.�“It�was�a�slow,�incre-mental,�sometimes�painful,�and�frustrating�learning�process�that�took�place�over�two�decades,”�March�points�out.
Since�the�first�commercial�bitumen�production�in�the�mid-1980s,�Cold�Lake�has�grown�to�become�the�third-largest�source�of�crude�oil�production�in�Canada.�As�well,�the�cost�of�producing�a�barrel�of�oil,�excluding�energy�costs,�has�been�reduced�by�35�to�40�per�cent,�he�says.
As�with�all�of�its�operations,�Imperial�says�it�would�emphasize�technologies�that�reduce�energy�use�and�minimize�GHG�emission�intensity.�The�Kearl�project�will�include�cogeneration,�which�the�company�estimates�will�result�in�500,000�fewer�tonnes�annually�in�the�first�phase�compared�to�purchasing�electricity�from�the�Alberta�power�grid�and�producing�steam�separately,�March�says.
Imperial�also�plans�to�use�its�new�froth�treatment�technology�to�extract�bitumen�from�the�sand,�resulting�in�a�more�efficient�use�of�energy�and�a�higher�grade�quality�of�bitumen�that�requires�less�
Leaving no traceLeaving no traceLeaving no traceLeaving no traceLeaving no trace
10 | airwaterland
blending�for�shipping�by�pipeline�and�eliminates�the�need�for�on-site�upgrading.�Kearl�will�be�the�first�oilsands�mining�operation�that�does�not�require�an�upgrader�to�make�saleable�crude�oil,�as�bitumen�will�be�shipped�directly�to�markets�as�dilbit.
March� acknowledged� that� not� everyone� in� Calgary—or�Alberta—is�happy�with�that�decision.
reDUCing gHg emissions“But�it’s�clear�that�upgrading�bitumen�once,�rather�than�upgrad-ing�two�times�in�an�upgrader�and�a�refinery,�reduces�life�cycle�greenhouse�gas�[GHG]�emissions,”�he�says.
March�also�says�he�was�encouraged�by�a�recent�study�by�the�Alberta�Energy�Research�Institute�on�life�cycle�GHG�emissions�that�predicted�that�the�Kearl�project�design�of�mining,�cogeneration,�and�producing�diluted�bitumen�without�an�upgrader�will�have�about�the�same�life�cycle�GHG�emissions�as�the�average�of�conven-tional�crude�oils�refined�in�North�America.
Like�other�similar�developments�in�the�Fort�McMurray�area,�Kearl�will�draw�water�for�the�project�from�the�Athabasca�River.�While�environmental�groups�have�expressed�concern�about�the�volumes�that�are�being�withdrawn,�March�points�out�that�less�than�three�per�cent�of�the�river’s�natural�flow�is�currently�allo-cated�to�the�oil�and�gas�sector.�In�contrast,�60�per�cent�of�the�flow�in�the�South�Saskatchewan�River�basin,�which�includes�the�Bow�River�through�Calgary,�is�allocated�to�agricultural,�municipal,�and�industrial�users.
Imperial�also�is�working�cooperatively�with�other�oilsands�com-panies�and�has�committed�to�a�plan�aimed�at�preserving�accept-able�flow�rates� in� the�Athabasca�River,�as� laid�out� in�a�water�management�framework�established�by�the�Alberta�and�federal�governments.�In�addition,�Kearl�will�use�advanced�technologies�developed�at�its�Cold�Lake�operation�to�recycle�process�water�
and�reduce�water�demand.�Oilsands�production�facilities�such�as�Syncrude�Canada�Ltd.,�operated�by�Imperial,�and�Cold�Lake�recycle�up�to�90�per�cent�of�the�water�used�in�production,�the�luncheon�heard.�In�addition,�Kearl�plans�to�use�water�storage�to�reduce�water�withdrawals�from�the�river�during�winter�low-flow�periods.
Cold�Lake�has�contributed�some�significant�environmental�innovations�such�as�state-of-the�art�water�recycling�techniques�in�addition�to�advances�in�oil�recovery.�For�example,�in�1985�more�than�four�barrels�of�fresh�water�were�required�to�produce�a�bar-rel�of�bitumen;�today�that�requirement�is�roughly�half�a�barrel�of�water.�Imperial�also�has�developed�technologies�to�recycle�the�water�produced�with�the�oil,�significantly�reducing�fresh�water�requirements�and�operating�costs.
However,�Imperial�isn’t�about�to�stop�there,�according�to�March.�There�are�further�improvements�that�can�be�made�to�oilsands�tech-nologies,�and�investment�in�research�and�technology�is�critical�to�finding�cleaner�and�more�efficient�ways�of�developing�the�oilsands,�he�says.�“The�key�to�innovation�is�to�support�innovative�research.”
The�company�spends�four�out�of�five�research�dollars�on�oil-sands� research�and� last� year� invested�$90�million� in�oilsands�research.�In�addition�to�research�at�its�own�Calgary�research�labo-ratory,�Imperial�sponsors�a�wide�range�of�energy�research�pro-grams�at�Canadian�universities�and�other�institutions.
March�also�emphasizes�the�need�for�continued�investment�in�oilsands�research�and�technology,�by�governments,�academic�insti-tutions,�and�other�public�sector�groups,�as�well�as�by�companies.
“The�current�economic�downturn�and�increased�public�scru-tiny,�if�anything,�emphasizes�the�importance�of�bringing�the�best�technology�to�bear�on�the�challenges�of�oilsands�development,”�he�says.�“This�is�the�time�to�make�the�kinds�of�investments�that�will�position�Canada’s�oilsands�business�for�even�greater�success�in�the�future.”
Leaving no trace
awl
Leaving no traceLeaving no traceLeaving no traceLeaving no trace Imperial will draw on Cold Lake experience for Kearl Mine reclamationby Elsie Ross
land
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Searching for common groundA Q&A with
Green Party of Canada Leader Elizabeth May
As difficult as this may be to believe, it’s true: That was the leader of Canada’s Green Party at the Calgary Petroleum Club on Nov. 18.
There’s a perfectly logical explanation. The Calgary Economic Forum had invited Elizabeth May to participate in a debate over whether oilsands development is irreconcilable with the environ-mental agenda.
May is certainly no stranger to the environmental movement. She first became known in the Canadian media in the 1970s through her leadership as a volunteer in the grassroots movement against aerial insecticide spraying proposed for forests near her home on Cape Breton Island, Nova Scotia. She gained national prominence as the executive director of the Sierra Club of Canada for more than 16 years before leaving to run for the Green Party leadership in 2006.
May is a big proponent for searching for common ground. She talked about this and other issues with Oilsands Review editor and special Air Water Land correspondent Deborah Jaremko. Here’s an excerpt from their interview:
wHAt’s DiFFerent ABoUt tHe wAy yoU tALK ABoUt environment/energy issUes As A FeDerAL PoLitiCiAn versUs in yoUr PrevioUs roLe witH tHe sierrA CLUB oF CAnADA?The big difference is not so much how I talk about things as the fact that I have free reign on every-thing that interests me, [such as] the growing gap between rich and poor in Canada, or health care, or deficits. These are issues the Sierra Club is not as concerned with. At Sierra we’re always trying to be constructive and positive, to find opportunities [as in the Green Party]. Sierra doesn’t hang banners.
yoU were very reCentLy QUoteD As sAying tHAt A mAssive moBiLiZAtion wAs neeDeD to senD A strong messAge to Prime minister stePHen HArPer regArDing CLimAte CHAnge AnD DeveLoPment oF tHe oiLsAnDs inDUstry. wHen yoU sAy “mAssive moBiLiZAtion,” Are yoU ConDoning sUCH ACtions As tHe reCent site oCCUPAtion DemonstrAtions By greenPeACe?What I am advocating is citizen engagement. I mean using the tools of citizenship, like writing to your Member of Parliament, emailing, phoning, blogging, writing letters to the editor, finding ways to make your voice heard so politicians can’t say that no one cares about [the issue].
There are lots of things you can do. Canada had more “350” events [Example: the International Day of Climate Action on Oct. 24] than any other country in the world. That shows a willingness to mobi-lize. A lot of people think it is not going to make a difference, and that is what we are trying to fight.
yoU’re in CALgAry, At tHe PetroLeUm CLUB, ABoUt to DeBAte DeveLoPment oF tHe oiLsAnDs inDUstry. wHAt is tHe messAge yoU HoPe to LeAve tHis AUDienCe witH?I’m pleased to have been invited. I think that is a positive step towards dialogue—I don’t just want to talk to people that agree with me. I’m assuming that the people in that audience are like everyone I’ve met in Calgary at the Stampede. I don’t find people who don’t get it, but people who might have different solutions. I want to search for our common ground. It’s certainly not going to be a “gang up on Alberta.”
in tHe PAst yoU HAve CALLeD For A morAtoriUm on oiLsAnDs DeveLoPment. is tHAt stiLL tHe CAse? We need to take a pause. Figure out [issues like] water use and energy return on investment. We need to diversify economic activity. All of Canada has been scarred and disserviced by the focus on tarsands as an engine of growth for the economy. awl
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feature
no bull: cat makes tracks with a hybrid dozerThe company that produces the largest earthmoving equipment in the world has introduced the first-ever hybrid bulldozer. It’s a machine that not only performs better than its peers, but one that the company says also uses less fuel and generates fewer greenhouse gas emissions.
Caterpillar’s D7E is a medium-sized dozer that for the first time incorporates a hybrid diesel/electric drive system. It is a machine that Caterpillar says conventional wisdom said could not be built, one that could be powerful and precise yet use con-siderably less fuel.
“More and more, dozers in the D7 class are called upon for site development work, especially in residential applications,” the company says. “These jobs demand a mix of straight-ahead dozing power and tight-quarters manoeuv-rability,” the company says.
By creating the D7E, Caterpillar has achieved not only that combination of strength and agility, but also a significant advancement of green technology by increasing efficiency and reducing fuel consumption by up to 30 per cent.
“The total emissions reductions from productivity increases and fuel savings per hour are: 10 per cent from [carbon monoxide], 20 per cent for [nitrogen oxide] and [hydrocarbon], 51 per cent for [par-ticulate matter] and 23 per cent for [carbon dioxide],” according to the company.
The U.S. Environmental Protection Agency (EPA) has given Caterpillar a Clean Air Excellence Award for its work on the D7E.
“Caterpillar has opened the door to new applica-tions for electric drives in construction equipment,” the EPA says. “Now workers on jobsites…can look forward to higher productivity and fewer emissions.”
Suncor expands ethanol plantSuncor Energy is resuming a $120-million expansion of Canada’s largest ethanol plant, designed to double the plant’s production capacity from 200 million to 400 million litres per year. The ethanol
is blended into Sunoco gasoline.The expansion, combined with Suncor’s investment in four Canadian wind power pro-jects, is expected to offset almost one million tonnes of carbon dioxide per year, or the
annual tailpipe emissions of about 200,000 cars.“Suncor is using revenues from oilsands development to invest in biofuels, particu-
larly ethanol produced from corn,” the company says.The St. Clair ethanol plant, located in the Sarnia-Lambton area of Ontario, opened in
2006. Since that time, Suncor says the installation has contributed to the development of a competitive domestic industry for renewable fuels.
“The St. Clair facility is the platform for growth of Suncor’s biofuels portfolio,” says Jay Thornton, executive vice-president of energy supply, trading, and development.
At current capacity of 200 million litres per day, the plant consumes 20 million bush-els of corn per year—about 10 per cent of Ontario’s yearly crop. When the expansion is complete in late 2010 or early 2011, demand will increase to 40 million bushels of corn annually. Once the starches are extracted from the corn to make ethanol, the remaining material is used to make cattle feed.
During construction, the St. Clair expansion will create 350 jobs, with 15 new permanent positions when complete, plus the supporting demand for feedstock from local farmers.
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ENER
GYaLternative
roof shingles soak up the sunDow Chemical Co. is attempting to break through the two main challenges it sees in using solar energy—acceptance and cost—through the introduction of a new solar roof shingle that is affordable and convenient.
The Powerhouse solar shingle, unveiled this fall, integrates thin-film photovoltaic cells into a “multi- functional solar energy–generating roofing product.”
Dow says installation costs are reduced because conventional shingles and solar shingles are installed simultaneously, and contractors need not have any specialized knowledge of solar arrays. The solar shingles are also designed to look like the average roofing shingle.
“This is about providing roof protection and energy generation all from one product, with lower costs, improved aesthetics, easier installation, and long-lasting performance,” says Jane Palmieri, manag-ing director of Dow Solar Solutions. “Consumers reap the benefits of our innovation.”
In 2007, Dow received $20 million in funding from the U.S. Department of Energy to develop “building integrated” solar arrays for commercial and residential construction. The new solar shingles are part of that program, and their production is seen as a way to not only more efficiently use solar power, but also create “green” jobs.
“Dow’s solar shingles are another example of local research and development helping grow our green economy,” says Michigan Governor Jennifer Granholm. The shingles are being produced at Dow’s Michigan headquarters.
The company says the systems will be available in limited quantities in mid-2010, and more widely available in 2011.
no more waste heat at plantIt’s goodbye to natural gas and hello to renewable energy for 1,600 homes in Alberta’s Capital Region. Thanks to a $7.45- million grant from the provincial government, the waste heat from an Edmonton biofuels plant will soon be sent to an existing
community energy system in nearby Strathcona County.The community energy system—an “eco-forward”
set-up where heat is provided to a number of buildings from a central source rather than by individual boilers at each—has been operating in Strathcona County since 2006. Even using natural gas, the approach claims an 18 per cent drop in annual greenhouse gas (GHG) emis-
sions compared to conventional heating, or about 1,100 tonnes. By using the residual heat from the biofuels facil-
ity instead of natural gas, it is estimated GHG emissions will be reduced by 7,000 tonnes per year.
“[The project] is a great example of Albertans pioneering new technologies with the potential to have a worldwide impact,” Rob Renner, Minister of Alberta Environment, said in a statement.
The $7.45 million in funding came from Canada’s EcoTrust for Clean Air and Climate Change, announced by the federal government in 2007. Under the program, Alberta is entitled to $155.9 million for “provincial projects that will result in real reductions in greenhouse gas emissions and air pollutants.”
Engineering, design, and procurement for the project will begin next January. Construction is expected to be complete in March 2012, with start-up a few months later.
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ENERGY
reneWaBLe
Sources: Oilsands Review, Waste Management, TransAlta, The Canadian Institute
Amount of electricity that’s expected to be generated once a new gas-to-energy plant comes online in 2010 at Waste Management’s Petrolia, Ont., landfill. Waste Management says this will be the largest landfill gas-to-energy plant in southwestern Ontario. The company already has more than 100 landfill-gas-to-energy plants in North America and plans on having more than 160 in operation by 2013.
AmoUnt For every kilowatt-hour of solar electricity that SkyPower Corp. and SunEdison will receive from the sale of electricity to the province of Ontario. The two companies plan to build a 9.12-megawatt solar farm in Norfolk County, southwest of Toronto. The project will send power to the grid under a 20-year deal with the Ontario Power Authority.
3.2megaWattS
$0.42
carBon caPture
$54.1 BiLLion
if all the talk about carbon capture and storage (CCs) has you confused, you might want to check out the fourth annual Carbon Capture and storage Conference at the Calgary telus Convention Centre in Calgary on Jan. 26 and 27. the Canadian institute, a prestigious think tank that is organizing the event, bills the conference as “the optimal environment to gain critical updates and address the vital issues concerning the commercial success of CCs.” Besides updates on the latest projects, policies, and technologies, there will be reports on the lessons learned during actual CCs projects, such as total’s power plant in Lacq, France. to learn more, check out canadianinstitute.com.
NuMber Of TONNes Of cArbON diOxide ANNuAlly ThAT Will NOT gO iNTO The ATMOsPhere frOM PrOjecT PiONeer, Which The AlberTA gOverNMeNT bills As ONe Of The WOrld’s firsT fully iNTegrATed cArbON cAPTure ANd sTOrAge fAciliTies fOr A cOAl-fired POWer PlANT.
1 miLLion
The total of upstream capital spending in canada in 2008, according to the 2009 global
upstream performance review by oil and gas research firm ihs herold and upstream corporate
advisor harrison lovegrove & co. The growth was due to both the surge in bitumen mining
development and an overall increase in conventional and in situ oilsands activity, the report said.
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f a c t SJUST THE
