apao.ca

Ontario Biogas OutlookCanadian Farm and Food Biogas Conference 2012

Jennifer Green, Executive Coordinator, APAO

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Overview Introduction Sources and Potential Ontario Outlook Sector Development Projects

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APAO – Biogas AssociationMission

APAO is the collective voice of Ontario’s growing biogas

industry in the new sustainable energy economy. 33%

24%

24%

10%

3%2% 2%

1% 1%

Membership - 2011

owner/operatorindividualtechnology supplieraffiliate organizationagencyconsultantwaste industrystudenthonorary

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APAO Partners and Supporters Community Energy and Partnership Program, with

funding from the Ontario Power Authority Funding to participate in this conference Material not endorsed by the OPA or Province of Ontario

Farm Credit Canada Sponsorship Ontario Ministry of Agriculture (OMAFRA) Agricultural Adaptation Council of Canada Biogas Association Member contributions

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Sources and Potential

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Sources: Agricultural Generate energy and revenue from waste

Livestock manure ~12,000,000 t/yr in Ontario

Crop residuals* ~10,000 kt/yr assorted crops in Ontario

Greenhouses ~ 220 in Ontario

Key value added benefits: Odour reduction GHG capture (methane) Enriched fertilizer Source water protection 1 cow, 1 day of manure =

3kWh

*OMAFRA livestock statistics and crop reporting data

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Sources: Municipal Generate energy and revenue from waste

Wastewater treatment Landfill gas Source separated organics (SSO)

Key value added benefits: Reduce waste transportation

(costs/distance) Extend landfill capacity Reach climate change targets

3 million tonnes of GHG reduction from biogas Opportunities for vehicle fuel for fleets

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Sources: Industrial/Commercial/Institutional

Expand the waste streams to capture: food processing plants ~ 3,000 in Ontario slaughterhouses ~ 140 in Ontario numerous schools, cafeterias, hospital

generating and separating organics Quick estimates:

~145 m3 biogas/tonne of municipal SSO One tonne of organic solids diverted from landfill =

0.8 tonnes CO2e Up to ~10 million wet tonnes of food-based inputs in Ontario* Toronto alone generates 170,000 tonnes/yr of residential food

waste and 865,000 tonnes/yr of commercial food waste

*OMAFRA study 2008

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Farm Based Case Studies Utilizing manure - dairy, beef, veal Diverting off-farm materials - fats, oils, greases, off

spec food Generating electricity - predominately 250-500kW Land applying nutrient-rich fertilizer Replacing animal bedding Engaging next generation on the farm

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Guelph Case Study Captures methane from closed landfill

2.5 MW electricity production Vehicle fuel from wastewater treatment plant Waste water treatment Local meat processor +

Guelph Hydro

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Retail Connection Grocer to supply ZooShare biogas facility

In-store education opportunity Large retailer investigating sending food waste

to AD Part of sustainability commitment Full circle stewardship

Related green marketing opportunities for additional retailers

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Biogas Potential Produce an estimated 250MW of electrical power Manage intermittent renewable power supply through

storage and flexible power Create 2,500 technical, manufacturing,

construction/trades jobs Generate $1 to $1.5 billion dollars of investment in rural

economic development, as proven in Germany with its similar agricultural base

Use organic waste streams originating from agricultural, food and municipal sectors

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Ontario Outlook

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Motivating Biogas in Ontario

2005

1st Ontario Biogas System

2007

OMAFRA Biogas Financial Assistance Program

2009

OPA Feed In Tariff (FIT)Program Launch

2011

OPA FIT Two-Year ReviewOEB RNG Review

2012

OPA FIT 2.0OEB RNG

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Ontario’s Biogas Development

2007 2008 2009 2010 2011 2012 >20120

2000

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10000

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14000

16000

18000

20000

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5

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Ontario Biogas Projects

>500251-500101-250100Projects

Year

Inst

alle

d el

ectr

ical c

apac

ity (k

We)

Num

ber o

f Bio

gas S

yste

ms

Constructing

Planned

Generating

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Biogas Success Ontario biogas milestones in < 5 years

Generation of reliable, flexible electricity Grid interconnection Job creation in rural communities Treatment of organics Farm benefits Revenue for farmers, municipalities Commitment to solving issues Fossil fuel offsets

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Sector Development Projects

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Grid Connections Project Focused research to address technical grid connection

issues for biogas Partners include Hydro One, OMAFRA Initiatives

Member surveys Monitoring of projects with utility feeders Grid connection guide

Funding provided by OMAFRA Link to resources at www.apao.ca

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Innovation Forum

Forum to explore new markets: Biomethane injection into the grid Stationary heat source Transportation fuel

Bring experts together to advance opportunities and help overcome barriers

Develop a Forum report that outlines activities that will address the challenges and opportunities

Funding provided by Growing Forward, a federal-provincial-territorial initiative

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Developer’s Guide to Biomethane

Guide to help farmers evaluate

the biomethane opportunity Summer 2012 online

Interviews Biogas developers, technology suppliers, utilities, provincial

policy makers and regulators, feedstock providers Funded by Agricultural Adaptation Council of Canada,

with support from the Canadian Gas Association, PlanET Biogas Solutions, European Power Systems, FortisBC, and APAO members

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Future Plans: Agriculture Sector Additional Developers’ Guides:

Electricity Vehicle Fuels Stationary Heat

Educate potential developers Tours and events Newsletter, website,

communications

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Future Plans: Municipal Sector Academic Research

Sustainability Case: Economic, Environment, Social

Build Municipal Toolkit Engage municipalities across Ontario

Small and large Meetings and workshops

Goal: biogas systems for a range of uses in municipalities across Ontario

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Path Forward

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How Does Ontario Measure Up?

Germa

ny

• ~7,000 biogas facilities

• 2,700 MW of electricity

• 60 plants producing biomethane

• ~ same number of livestock units as Ontario

• Target to generate 17% of total power from biogas

• $1 billion directly invested by biogas industry in German economy

• 46,300 direct jobs created

• FIT tariffs ranging from ~8ct/kWh to ~33ct/kWh

• Adders for raw materials, manure, emission reduction, technology, heat, CHP

Unite

d States of A

meric

a

• Wisconsin Dairy sector approximately the same size as Ontario’s

• ~1,000 food processing facilities

• 30 operating digesters, 22 of which are on farm

• Approx. 11.6MW of electricity generated in 2009

• Currently have a Renewable Portfolio Standard

• Vermont Cow Power program

Ontario

• 10 operating biogas systems

• 5MW of electricity

• Target of 12% for all renewables by 2025

• Similar agricultural base to Germany

• FIT tariffs ranging from 10.7 ¢/kWh to 19.5 ¢/kWh

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Mobilizing a Biogas IndustryFarmers/Municipalities• More individuals

or groups investing in AD Government

• Supportive, prudent policyReasonable regulatory processAccessibility to programs

FIT Review• A reasonable price for

biogas to include innovation and community adders

Financiers• Banks understand

AD value and willing to invest

Technology• More Ontario

expertise to grow sector

Associations• Strong active

partnerships

BIOGAS in

ONTARIO

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Summary A biogas sector has emerged in Ontario Biogas has the potential to grow to:

Create jobs and manufacturing Expand its energy opportunities Utilize waste and generate revenues Positively impact society and the environment

Collectively, industry and government can work together to create a biogas strategy

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Thank You

Contact: Jennifer Green

Email: exec_coord@apao.ca

Phone: (613) 822-1004