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Energy, Infrastructure Development, Renewable, Sustainability

Decarbonization Pathways for Ontario

CE Energy Insight – October 2020

Clean Efficiency recently partnered with the Professional Engineers of Ontario (PEO) Mississauga chapter to present a panel-style webinar. The topic was Decarbonization Pathways for Ontario. The event brought together diverse energy experts to discuss the future of clean energy in Canada’s most populous province.

The event was well attended, with over 60 PEO members tuning in. Clean Efficiency founder, Nnaziri Ihejirika, moderated the discussion on decarbonization pathways for Ontario. In addition to Nnaziri, Jim Sarvinis, Managing Director of Hatch Power was a panelist. The panel also included Xavier Gordon, President of Xergy Energy and Paul Acchione, nuclear energy expert and former President of the Ontario Society for Professional Engineers (OSPE).

https://youtu.be/ibHPwHvPz44

As always, follow us on Twitter and LinkedIn today, or contact us to see how we can help develop your decarbonization pathway!
Efficiency, Energy, General, Renewable, Sustainability, Uncategorized

Energy Switching Options

CE Energy Insight – September 2020

In a discussion last week, our previous post on energy efficiency came up. I was asked the following question: “Which renewable energy needs to be adopted for our daily energy needs?” At that moment, I realized that there quality knowledge on energy consumption is lacking. There is also little information on energy switching options. Or the complexity associated with this transition. Here then is a brief primer on energy consumption, the complexity of energy switching, and our top picks for energy switching options. We’re interested in hearing what you think!

Consumption Today

Energy consumption occurs broadly across three spectra – thermal, transportation and electricity. Thermal energy accounts for 50% of global energy consumption (IEA). Transportation accounts for a further 25% (EIA), while electricity makes up 18%. The electricity sector has been quick to adopt renewable energy technologies. Yet global energy demand continues to be weighted towards fossil fuels primarily because of where consumption occurs. For large-scale decarbonization to occur, there must be a shift in the transportation and thermal sectors. It’s also important to note that decarbonization may not mean the outright elimination of carbon. So how can energy switching occur in each of these areas?

Energy Switching – Thermal

 Many jurisdictions have banned the further development of coal plants. Others have actually closed down coal plants even before their normal retirement age. A question that comes up is what to do with those plants. In addition, how can the high heating coefficient of coal be replaced? Oil is also – if rarely – used for heating. This occurs particularly in colder (and more northern) areas, as well as in many oil-rich countries. Finally, there are questions about how to manage waste in many developed and emerging economies. We combine these scenarios to rank our preferred energy switching options for heating:

  1. Biomass – coal plants can be repurposed as biomass plants (Ontario, Canada has done this). It’s important that these plants use renewable biomass feedstock.
  2. Geothermal – Iceland has done this already. Canada, Russia, Australia and the United States have massive geothermal potential. This is the long-range play.
  3. Natural Gas – assuming a solution can be found for methane leaks. From a carbon-reduction standpoint, replacing coal plants with natural gas boilers will save billions of tons of CO2 emissions.
  4. Other wildcard options – nuclear waste heat, solar heating (very limited potential, in our opinion), heat pumps (can this be more wide-scale?).

Energy Switching – Transportation

Outside of electricity, this is the other consumption category that has received the most attention from a technological innovation standpoint. Several European countries have announced bans on the sale of new fossil-fuel internal combustion cars over the next decade. Marine and air transport have been spared (so far). Still, there is an intense battle to discover the next fuel for our human desire to explore by air, sea and land.

  1. Electric batteries – already a proven technology, but not affordable for most of the world’s population. Key to its global adoption will be the development of higher capacity batteries as well as cost affordability. Other external factors to consider include grid reliability and the source of electricity generation.
  2. Hydrogen – still in development. Considered the long-term play for transport as it’s perceived to be an easier transition for marine and aviation than electric batteries.
  3. Liquified Biomethane – still in development. Another long-term play that combines the need for eliminating waste (via biogas) with an avoidance of the ethical issues surrounding ethanol and other plant-based biofuels. Higher processing requirements may mean more energy, however.
  4. Wildcards – Ethanol (not our preferred approach, especially in a world where food poverty remains an issue), algae (too limited, potentially unsustainable).

Energy Switching – Electricity

Storage is the biggest question in this space. Lack of storage prevents deployment of variable renewable energies as baseload power. Grid infrastructure is also a challenge in several countries. We believe nuclear energy should remain an option, but recommend that developers and regulators consider the full costs of nuclear waste disposal.

  1. Solar – not optimal everywhere, efficient storage for nighttime still an issue. However, quick to deploy and easy energy switch overall.
  2. Biomass – similar to heating, effective replacement for coal-powered electricity, as long as it’s from renewable biomass.
  3. Hydroelectric – in our opinion, hydroelectricity is very underrated. It should be a large part of the baseload mix for any sustainable electricity model.
  4. Wildcards – Nuclear power (lots of angst around nuclear safety. Biggest concern is waste disposal/re-purposing), wind power (similar to solar in its limitations, and not as versatile in deployment).

Final Comments

Now you’ve seen our picks for energy switching options, we’d like to know what you think! Feel free to post a comment with your picks for energy switching options.

The main things to keep in mind when considering an energy switch are the long-term sustainability impacts, as well as a sense of where regulations and technology are headed.

Follow us on Twitter and LinkedIn today, or contact us to see how we can help you achieve your energy switching and sustainability goals!

#energyintelligence #energyswitching #thermal #transportation #electricity #sustainability
Efficiency, Energy, Sustainability

Energy Efficiency and Sustainability

CE Energy Insight – August 2020

Despite the global focus on climate change and reducing emissions, energy efficiency is often pushed to the background. This is especially so in comparison to renewable energy development. Or the electrification of mobility. Certainly, it’s not seen to be as cool as the emerging clean tech sector. Most policymakers agree that sustainability, not just renewability, is key to energy systems of the future. When viewed from from the lens of finite resources, population growth and time, it becomes clear that energy efficiency and sustainability are linked.

1. Finite Resources

Renewable energy technologies like solar PV, wind, biomass have been scaled to the point where they are cost-competitive. Allied with the electrification of mobility, most OECD countries have shown that it is possible to power economic growth using renewable energy. However, not all the components required to deliver these technologies are renewable. Further, a look at the complete lifecycle calls the sustainability of some of these precious resources into question. Shown in Figure 1 is the depletion rate of the four main metals used in renewable energy hardware production. The data presented doesn’t take into account increased depletion of these resources to meet growing demand. 

The world doesn’t appear to be running out of rare earth metals anytime soon, but the proven reserves of copper and cobalt are concerning.  Heightening the risk, over 60% of the world’s cobalt resources are located in the Republic of Congo. This is a region where there are concerns about unsustainable practices such as child labour, unsafe working conditions and poor environmental regulations. If production companies are compelled – or choose to – leave such environments, further strain will be placed on already limited resources. It’s true that new reserves – and indeed new materials – can be found. It is equally true that these will bring their own supply chain and sustainability risks.

2. Population Growth

Global population is expected to increase from 7.5 billion this year to nearly 9.5 billion in 2050. This represents an annual population growth of 0.9%, much higher in emerging economies. Exponential energy efficiency improvements will be needed in order to keep up with population growth and meet the Paris agreement targets. Interestingly, nearly 50% of this growth is projected to come from just seven countries, shown in Figure 2. Crucially, these countries are located in regions of the world which have not made significant strides either in the adoption of renewable energy or energy efficiency policies.

Nigeria, for example, will double its population within the next thirty years. Although India’s population growth has slowed, it will also add an additional 240 million citizens by 2050. Economic growth in these areas that is not built on a sustainable energy platform is likely to negate the emissions reduction efforts of OECD countries, no matter how aggressive the latter are.

3. Limited Time

This is linked to the other two factors described above. As clean energy experts have cautioned, delays in the removal of polluting forms of energy from the ecosystem have a multiplying effect on the length of time it will take to get down to the Paris agreement targets. The graph below shows the electricity generation capacity added by China since 2000.

China has been lauded for its focus on adding significant volumes of renewable energy generation during that same period. Yet, coal power makes up over half of the country’s installed capacity. Removing this capacity will require over three times the renewable energy investment the country has made since 2010 alone. Energy efficiency would allow coal plants to be preferentially retired earlier, speeding up the country’s journey to a renewable future without the attendant cost of replacing the lost capacity.

Summary

These three factors highlight the connection between energy efficiency and sustainability. Following this path can be the difference between progress in meeting emissions targets and not doing so at all. It can provide a time buffer for energy switching decisions without the inertia and stigma of standing still. Energy efficiency also allows entities with limited financial flexibility and/or regulatory support for energy switching to contribute their share to a reduction in global emissions. Most importantly, energy efficiency and sustainability can be implemented without sacrificing economic efficiency. 

Follow us on Twitter and LinkedIn today, or contact us to see how we can help you achieve your energy efficiency and sustainability goals! 

Economic, Efficiency, Energy, Environmental, General, Sustainability

Canadian Big Oil Promotes Carbon Policy

That headline is not click-bait, nor is it wishful thinking. In late May, Steve Williams, CEO of Suncor penned an editorial for the Calgary Herald (along with Justin Smith of the Calgary Chamber and Chris Ragan, an Economics professor at McGill University). In this editorial, Williams highlighted the importance of having the right climate policy, especially with the upcoming expiration of the Specified Gas Emitters Regulation (SGER), the internaitonal climate negotiations in Paris later this fall and public opinion in light of the new (left-wing) majority government in Alberta, Canada’s oil bastion.

Steve Williams Article in the Calgary Herald

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Economic, Efficiency, Energy, General

Alberta’s Inefficiency Highlighted by Unproductivity

A new study was recently released which showed that Alberta had the highest unproductivity rates compared to other North American jurisdictions. Although the province’s growth is high, it has been driven by increases in labour, rather than improvements in productivity of individual workers. The study (see below for the article) goes into other aspects of productivity, but the industrial numbers are of concern here.

‘Job machine’ Alberta dead last in labour productivity among oil regions: report

The numbers are not a surprise to people involved in Alberta’s (mostly) extractive industries. Alberta suffers from more inclement weather, and crucially weather swings, that most of the jurisdictions surveyed. Productivity at most Oilsands facilities averages 3 hours for every 10 hours paid, in the estimation of this blogger (based on direct knowledge of the system). In addition, the increase in labour demand has led to the hiring of inexperienced workers, who typically take a few months to come up to speed but are charged with producing at full capacity right away. Finally, most industrial sites in Alberta are in fairly remote locations. The supply chain issues around construction materials in particular, result in further unproductivity per dollar spent.

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Economic, Energy, Environmental, General, Sustainability

Keystone XL to have “no impact” on GHGs

According to a study by IHS, a global consulting group, the proposed Keystone XL pipeline would have “no material impact” on greenhouse gas emissions or on the overall American carbon footprint. The study goes on to suggest that if the pipeline was not approved, the absence of oilsands crude in the Gulf of Mexico would be made up by an increase in heavy crude imported from Venezuela, which has a similar footprint to oilsands crude.

http://www.pennenergy.com/articles/pennenergy/2013/08/study-keystone-xl-pipeline-would-have-no-material-impact-on-u-s-greenhouse-gas-emissions.html?cmpid=EnlDailyPetroAugust122013

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Economic, Efficiency, Energy, Environmental, General, Renewable

Solar’s Potential Eclipse of Oil Makes Sense

According to Royal Dutch Shell, solar could overtake oil as the world’s dominant energy source within the next 50 years. While analysts have long debated how much and how quickly solar could displace oil, this is probably the first time that a supermajor oil company has – through its own analysis – come up with quantifiable numbers. Chevron and Exxon-Mobil, two other supermajors who are increasing their renewable portfolios at exponential rates, also foresee a similar picture, although not quite as quickly.

http://business.financialpost.com/2013/02/28/solar-may-eclipse-oil-in-fifty-years-shell/?__lsa=1200-56d8

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Economic, Energy, General, Renewable

Big Oil as Financiers of Clean Tech Ventures

In the middle of December, Royal Dutch Shell became only the latest oil ‘supermajor’ to invest in a renewable/sustainable energy startup. Their $26m investment in GlassPoint Solar Inc., a company whose technology Shell intends to use to improve wellpad heating efficiencies, follows in the footsteps of Chevron who are in a similar partnership with BrightSource Energy, another startup. Combined with the efforts of practically all oil/gas majors/supermajors (Exxon-Mobil, Statoil, Suncor, etc) to create their own clean energy portfolios – particularly wind and ethanol – Big Oil is increasingly showing up as a potential savior of the renewable technology industry.

It’s important to note this growing influence because at present, the renewable industry is at a crossroads vis-a-vis investment. Currently, the largest investors in this industry are governments – directly or through subsidies – but the global economic slowdown has affected this funding source. Bank loans, another major area (although whether this qualifies as an investment is questionable), have also seen sharp declines in North America or Europe. Big Oil, therefore, with its robust profit margins and opportunity for improvement (both from the public perception and economic efficiency standpoints) is in prime position to become the flag-bearers of renewable/clean technology.

Clean Efficiency is of the viewpoint that this is as it should be. For renewable companies to demonstrate viability to potential investors, they have to be tried and tested on large scale. This will also help drive down costs and make them more competitive with conventional technologies. Having the oil companies, their direct competitors, finance this growth is nothing short of a masterstroke and provides a win-win for both sides.

Economic, Efficiency, Energy, Environmental, General

Energy Efficiency: The Key to Stalling Adverse Climate Change

A recent study commissioned by 20 governments through the Climate Vulnerable Forum has identified climate change as one of the major causes of death for the foreseeable future. According to the report, by 2030 more than 100 million people will die and global economic growth will be cut by 3.2% if the world fails to tackle climate change due to greenhouse gases caused by the burning of fossil fuels. Usually with reports like this, the accusing eyes of the world turn to the oil industry and in particular the Oilsands, but this is hardly drilling deep – pardon the pun – to the heart of the real issue.

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Economic, Efficiency, Energy, Environmental, General

Are Renewables & Conventional Oil more ethical than Oilsands?

This is a piece that I posted to my personal blog over eighteen months ago. My perspective here was to promote discussion (and there was a heated twitter debate between myself and two friends) and ultimately make people think about the impact of their personal choices first and foremost. This debate/discussion is still relevant.

Culled from www.blackpolitico.blogspot.ca

While we wait for the hydrogen-powered cars of the future, does no one think of the socio-political issues around drilling in the Middle East? Sure, you can suck up oil from the ground using a straw in those places, but at what cost to the people there? At what cost to generation X of the United States and its allies, who aren’t fighting a war for world peace or to bring down a tyrant – as was the case in the first two world wars, respectively – but who are fighting instead so that the West can have oil at $70 per barrel?