SECTOR PROFILE - Calgary Economic Development · 2019-09-23 · 2 SECTOR PROFILE / JANUARY 2011 CALGARY SURE SECTOR ASSETS Calgary has a strong track record in the SURE sector, in

JANUARY 2011

SECTOR PROFILECALGARY, ALBERTA, CANADA

Alberta Innovates – Energy and Environment Solutions 16 Alberta Innovates - Technology Futures 16 Canada West Foundation 16Canada School of Energy and Environment 16 Canadian Energy Research Institute 17 Carbon Management Canada (CMC) - Networks of Centres of Excellence (CMC - NCE) 17Energy Policy Institute of Canada 17 Solid Oxide Fuel Cells Canada Strategic Research Network 17

18CALGARY’S EDUCATIONAL ASSETSThe University of Calgary 18SAIT Polytechnic 18Mount Royal College 19Bow Valley College 19DeVry Institute of Technology 19

CANADA’S ENERGY CENTRE

ACCESS TO CAPITAL

A HIGHLY-SKILLED LABOUR FORCE: BUSINESS, SCIENCE, AND ENGINEERING

A POLICY FRAMEWORK TO STRENGTHEN THE SURE SECTOR

VAST NATURAL RESOURCES

CALGARY KNOWLEDGE & NETWORKS

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QUALITY OF LIFE

ENTREPRENURIAL SPIRIT

CASE STUDY - COMMERCIALIZATION

CASE STUDY - DISTRIBUTED MICROGENERATION

25CALGARY SURE SECTORS

25RENEWABLE & CLEAN ENERGY GENERATION

ALBERTA’S GROWING ELECTRIC POWER DEMAND

WIND POWERCalgary’s Proximity to Wind Production Assets 27Wind Developers in Calgary 28

HYDROELECTRIC ENERGY

BIOMASS THERMAL ELECTRICITY GENERATION

RENEWABLE FUELS

NUCLEAR POWER

33CLEANER HYDROCARBONS

CARBON CAPTURE & STORAGE (CCS)

CLEAN COAL TECHNOLOGYIntegrated Gasification Combined Cycle (IGCC) Power Plants 34Underground Coal Gasification 34

35INTEGRATED AND DISTRIBUTED ENERGY

MICRO GENERATION

SOLAR POWER

GEOTHERMAL HEATING AND COOLING

37ENERGY EFFICIENCY AND CONSERVATION

ALBERTA MARKET FOR ENERGY EFFICIENCY

SMART GRID TECHNOLOGY

CALGARY DISTRICT HEAT

COGENERATION

42APPENDIX A: OVERVIEW OF KEY POLICY SUPPORTING THE SURE SECTORAlberta Climate Change Action Plan 42Alberta Greenhouse Gas Reduction Program 42 Alberta-Based Offset Credit System 42Alberta Climate Change and Emissions Management Fund 42 Climate Change and Emissions Management (CCEMC) Corporation 43 Alberta Carbon Capture and Storage 43Alberta’s Deregulated Electric Market 44 Alberta Policy to Increase Electric Transmission Capacity 44Alberta Microgeneration Policy 45Alberta Bioenergy Policy 45Alberta Renewable Fuels Standard 45City of Calgary Climate Change Policy 45City of Calgary|Enmax 100% Renewable Energy Agreement 46

2CALGARY’S SUSTAINABLE AND RENEWABLE ENERGY SECTOR (SURE)

47APPENDIX B: FUTURE ALBERTA WIND PROJECTS

4ASSETS THAT SUPPORT SUSTAINABLE & RENEWABLE ENERGY IN CALGARY

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TABLE OF CONTENTS

Micro Nuclear 32

40SURE NETWORKS

SURE SECTOR PROFILE 1

1SURE SUSTAINABLE & RENEWABLE ENERGY

Calgary Economic Development has compiled this sector profile to give interested businesses and individuals a comprehensive overview of the infrastructure and opportunities in Calgary’s growing Sustainable and Renewable Energy (SURE) sector.

Calgary’s SURE sector is unique. Calgary is a leading global energy centre, but its strength in energy has been built upon the province’s vast hydrocarbon resources. Few, if any, other cities or regions in the world can match the breadth and depth of Alberta’s significant oil, bitumen, natural gas and coal resources. Much of Calgary’s SURE sector has developed around technologies to ensure these resources are produced in the most environmentally-responsible manner.

Carbon capture and storage (CCS) is one such technology available to mitigate greenhouse gas (GHG) emissions from large-scale fossil fuel usage. The Province of Alberta has made a significant commitment to advance CCS towards commercialization, notably through a $2.5 billion direct investment in four large-scale CCS pilot plants and the development of legal and regulatory frameworks for cleaner hydrocarbons.

The Alberta Climate Action plan has created a provincial market for carbon that has driven firms to invest in efficiency improvements in their operations to conserve energy and to deliver lower GHG emissions. Calgary firms invest heavily in energy efficiency technology. The market for energy efficiency in Alberta’s industry and business sector is $660 million per year, and the market for all environmental protection expenditures in Alberta is over $3 billion per year.

Globally, markets for renewable energy through wind, solar, hydro, thermal and biomass sources are expanding at a tremendous rate and Calgary’s SURE sector is also experiencing strong growth in these categories. Calgary is well-equipped to support firms that are developing and commercializing new clean technology through a combination of human, financial, knowledge-based and environmental resources. Alberta’s oil and gas industry has the need and the desire to develop solutions to meet environmental challenges.

To learn more about Calgary’s SURE sector and for additional information, please contact:

Calgary Economic Development

731 – 1st Street SE Calgary, Alberta, Canada T2G 2G9

T 403.221.7831 or toll-free: 1.888.222.5855 F 403.221.7828

E-mail [email protected]


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2 SECTOR PROFILE / JANUARY 2011

CALGARY SURE SECTOR

ASSETS

Calgary has a strong track record in the SURE sector, in particular, in the areas of clean technology commercialization, investment in renewable energy, policies to support reductions in GHG, sustainable urban design and investment in energy efficiency. Assets unique to Calgary and Alberta have helped SURE sector firms develop new technologies and expand in new markets. These assets give Calgary-based firms a competitive advantage in this emerging field. In particular, Calgary offers these strengths:

• Global energy decisions are made in Calgary. Calgary is home to the headquarters of 91 major energy companies and businesses. The combined assets of these firms are over $500 billion and many of these firms are active investors in all aspects of sustainable and renewable technology.

• Calgary offers the highest concentration of science, engineering, and business and finance talent in Canada. Calgary’s young, well-educated and highly-skilled labour force has deep experience across the entire energy sector value chain.

• The Alberta policy framework promotes the growth of sustainable technology, especially in the areas of policy to address climate change, electric market deregulation and bioenergy policy. Alberta was the first province to introduce a carbon offset market through the Provincial Climate Action Plan. Recent policy changes have

paved the way for growth in microgeneration through renewable energy sources. The Province’s nine-point bioenergy plan offers incentives for development of a wide variety of bioenergy products including fuels, power and heat. Alberta also offers a stable regulatory environment with the lowest corporate and personal tax rates in Canada.

Alberta offers vast natural resources for renewable energy:

• Alberta’s ample wind resources have allowed the province to be the first in Canada to install a wind generation project.

• The Canadian Hydro Association estimates that there is more untapped hydro potential in Alberta than its total existing coal capacity. The ultimate hydroelectric energy potential that could be extracted from Alberta’s five river basins is about 53,000 gigawatt hours per year.

• Alberta offers ample sunlight. Calgary is the sunniest city in Canada, with an average of 2,405 hours of sun a year, spread over 333 days.

• Potential annual biomass feedstock in Alberta translates to an annual energy potential of 457 petajoules (PJ), approximately 22.6 per cent of the total energy consumed in Alberta each year.

Calgary’s Sustainable & Renewable Energy sector

CANADA’S ENERGY CENTRE

HIGHLY EDUCATED LABOUR FORCE

POLICY FRAMEWORK

KNOWLEDGE & NETWORKS

ACCESS TO CAPITAL

NATURAL RESOURCES

QUALITY OF LIFE ENTREPRENEURIAL

SPIRIT

SURE TECHNOLOGY

COMMERCIALIZATION & BUSINESS

GROWTH

CLEANER HYDROCARBONS

ENERGY EFFICIENCY & CONSERVATION

RENEWABLE ENERGY

INTEGRATION & DISTRIBUTED ENERGY

INTEGRATED SUSTAINABLE

TECHNOLOGY AND ENVIRONMENT

CALGARY SURE SECTOR LEADERSHIP


CALGARY HAS BEEN RANKED

#1BY MERCER

AS THE WORLD’S GREENEST CITY 2010

• Calgary offers an excellent quality of life. Calgary has been ranked #1 by Mercer as the world’s greenest city and by The Economist as one of the world’s top five most livable cities. Calgary’s pristine environment, high-quality jobs and access to world-class education and healthcare have attracted people from around the world.

• Calgary is the ideal place for clean and green technology commercialization. On a large scale, Alberta has made the world’s largest provincial commitment to development and commercialization of Carbon Capture and Storage (CCS) technology. Calgary assets have brought innovative ideas to market. Examples include Canada’s first biocomposite electric car, leading technologies for plasma gasification and cutting edge technology for wastewater management.

Growth in SURE sector markets is driving investment in Calgary in the areas of renewable energy, cleaner hydrocarbons, distributed energy and energy efficiency & conservation.

• Alberta leads the world in climate change responsibility with a $2.5 billion commitment to carbon capture and storage. These funds further leverage investment in clean coal technology including Canada’s first Integrated Gasification Combined Cycle (IGCC) power plant and use of underground coal gasification technology, both of which dramatically reduce GHG emissions.

• The market for environmental protection technologies in Alberta is over $3 billion per year. Alberta is Canada’s largest market for energy-efficiency expenditures in the business and industry sector, representing 40 per cent of the Canadian market.

• A variety of renewable energy investments are occurring across Alberta, driven by growth in demand for electricity. About 11,500 megawatts (MW) of new generation – nearly equal to the current amount of electricity that can be produced in the province of Alberta today – will be needed over the next two decades to meet forecast demand and replace aging power plants.

• There is over 7,800 MW of wind generation capacity planned in Alberta. This is more than ten times the current installed capacity.

• The Province’s micro generation policy has the potential to drive investment in micro wind and small photovoltaic (PV) solar by allowing customers to receive credit for electricity that they return to the grid.

Announcements of planned investments abound in Calgary’s SURE sector. These include investments in smart grid technology, district heat, cogeneration, biofuels, hydro power and other renewable and sustainable technologies. As opportunities continue to open, Calgary is growing as a leading centre for sustainable and renewable technology.

BY THE ECONOMIST AS

ONE OF THE WORLDS

TOP 5MOST LIVABLE CITIES 2010


Canada’s Energy CentreDecisions in the energy sector are made in Calgary.

Calgary is home to the headquarters of 91 major energy companies and businesses representing the full spectrum of the energy value chain. The city has a strong base of oil and natural gas companies as well as a mature network of professional, business, financial and engineering service companies that support the energy industry. These firms have global reach and many of Calgary’s energy firms have operations around the world. Likewise, many of the world’s largest international energy companies have offices in Calgary.

Calgary energy firms are major customers and investors in the global market for renewable and sustainable energy technology.

• Expenditures on energy-related processes and technologies are greater in Alberta than any other province in Canada. As active developers in a carbon-constrained world, Alberta energy firms are always looking for technologies to reduce GHG emissions and improve efficiency.

• Calgary firms are major investors in local and global renewable energy projects. Mainstream Renewable Power, for example, announced in 2009 an $840 million joint venture with Alberta Wind Energy Corporation (AWEC) to build over 400 MW of wind energy plants in Alberta by 2013.

Calgary energy firms play an active role in commercialization of new clean technology.

Several of Calgary’s energy firms have established goals to expand their renewable energy portfolio. To reduce carbon emissions and comply with the Alberta Greenhouse Gas Reduction Program, it is common for Calgary firms to be active investors and developers in partnership with Calgary clean technology research firms.

Assets that support Sustainable & Renewable Energy in Calgary

Mainstream Renewable Power announced in 2009 an

joint venture with AWEC to build over 400 MW of wind energy plants in Alberta by 2013.

$840Million


Access to capital

Access to capital is crucial for the SURE sector’s success. Calgary has a strong and growing capital market and financial services sector, a community of energy-focused financial expertise, a base of local capital and access to international pools of capital.

Publicly-traded energy firms headquartered in Calgary have combined assets of over

$500 billion and many have substantial investment targets or have set-aside development funds for renewable and sustainable energy technology. Calgary energy firms have been active investors and developers in renewable and sustainable technology and have a long history of investing in energy projects with long-term horizons for return on investment.

Suncor, Calgary’s largest energy firm by assets ($69 billion), has a target of $750 million in investment in renewable energy by 2012.

Encana ($35 billion in assets) operates two environmental funds: the Environmental Innovation Fund (EIF) and the Environmental Efficiency Fund (EEF), through which the firm finances the implementation of technologies or processes that result in measureable reductions in emissions, energy, land and water use within operations. The EEF finances internal projects at Encana that create measurable reductions in emissions, energy, land and water use in operations. The EIF has a mandate to fund external companies and technologies that improve the environmental performance of producing or consuming energy. Over $24 million USD has been invested in 63 environmental efficiency projects since the inception of the programs in 2007.

Enbridge ($28 billion in assets) has set a goal to grow its established sustainable green energy business to 10-15 per cent of earnings. The firm has opened the largest PV solar facility in the world (Sarnia, ON) and also has investments in wind, thermal energy, fuel cell, carbon capture and sequestration and waste heat. The firm has invested over $1 billion in green energy opportunities and will have grown its base of renewable energy generation from 11 MW in 2002 to over 900 MW by the end of

2011.Through the Enbridge Pathfinder Group, the firm invests in emerging technologies to bring them through commercialization to market.

Cenovus ($21 billion in assets) has created the Environmental Opportunity Fund to sponsor companies and research groups developing emerging or early-stage technologies that focus on water and energy efficiencies, reducing polluting emissions, environmental remediation and mitigating land disturbances. Through the fund, Cenovus supports innovative companies that are providing products and services to address environmental concerns. Recently, the fund has supported firms like NxtGen Emission Controls (diesel emission reduction technology), Atlantic Hydrogen (CarbonSaverTM demonstration Project) and others. The fund continues to welcome new proposals for investment in innovation.

Imperial Oil ($17 billion in assets) invested $770 million in environmental and capital expenditures in 2009.


Table 1 Asset base of top publically-traded energy firms headquartered in Calgary

Rank Company 2009 assets ($000s) Rank Company 2009 assets ($000s)

1 Suncor Energy Inc. 69,746,000 35 Balancing Pool 2,179,450

2 TransCanada Corporation 43,841,000 36 Vermilion Energy Trust 2,084,676

3 Canadian Natural Resources Limited 41,024,000 37 AltaLink, L.P. 1,999,286

4 Encana Corporation 35,552,176 38 Compton Petroleum Corporation 1,996,761

5 Petro-Canada 30,377,000 39 Advantage Oil & Gas Ltd. 1,927,241

6 Enbridge Inc. 28,169,000 40 Enbridge Income Fund 1,915,300

7 Husky Energy Inc. 26,295,000 41 Baytex Energy Trust 1,884,005

8 Talisman Energy Inc. 23,618,000 42 Connacher Oil and Gas Limited 1,739,518

9 Nexen Inc. 22,900,000 43 Daylight Resources Trust 1,727,814

10 Cenovus Energy Inc. 21,600,152 44 Gibson Energy ULC 1,673,394

11 Imperial Oil Limited 17,473,000 45 Keyera Facilities Income Fund 1,657,901

12 Penn West Energy Trust 13,876,000 46 NAL Oil & Gas Trust 1,609,450

13 Agrium Inc. 10,284,035 47 NuVista Energy Ltd. 1,555,743

14 ATCO Ltd. 9,954,600 48 Peyto Energy Trust 1,254,113

15 Devon Canada Corporation 9,890,961 49 Galleon Energy Inc. 1,136,732

16 TransAlta Corporation 9,762,000 50 Paramount Resources Ltd. 1,101,975

17 Canadian Oil Sands Trust 6,953,000 51 Paramount Energy Trust 1,065,305

18 Enerplus Resources Fund 5,905,516 52 Newalta Corporation 993,730

19 NOVA Chemicals Corporation 5,815,183 53 Crew Energy Inc. 963,248

20 Petrobank Energy and Resources Ltd. 5,766,568 54 Fairborne Energy Ltd. 940,443

21 Crescent Point Energy Corp. 5,439,430 55 Iteration Energy Ltd. 897,637

22 Pengrowth Energy Trust 4,693,604 56 Trilogy Energy Corp. 893,193

23 Inter Pipeline Fund 4,472,714 57 Graham Group Ltd. 885,000

24 Apache Canada Ltd. 3,967,958 58 Birchcliff Energy Ltd. 837,108

25 ARC Energy Trust 3,914,500 59 Celtic Exploration Ltd. 678,770

26 OPTI Canada Inc. 3,824,023 60 Fluor Canada Ltd. 535,484

27 ENMAX Corporation 3,719,100 61 Zargon Energy Trust 464,378

28 Murphy Oil Company Ltd. 3,488,822 62 Bellatrix Exploration Ltd. 440,970

29 Bonavista Energy Trust 3,092,129 63 Freehold Royalty Trust 418,540

30 Fort Chicago Energy Partners L.P. 2,864,899 64 Maxim Power Corp. 376,621

31 AltaGas Income Trust 2,629,096 65 The Churchill Corporation 367,417

32 Pembina Pipeline Income Fund 2,581,125 66 Avenir Diversified Income Trust 367,115

33 Provident Energy Trust 2,548,015 67 TransGlobe Energy Corporation 240,554

34 Progress Energy Resources Corp. 2,458,390 Total* $527,305,868

Source: FP 800; *Note total excludes assets of many global energy firms with Canadian headquarters in Calgary such as ConocoPhillips Canada Resources Corp., Shell Canada, KinderMorgan Canada, etc. Asset values for these organizations is not available.


Thanks to the large amount of capital spending among Calgary’s energy firms and the velocity of deal flow, Calgary is quickly being recognized as more than just Canada’s energy capital. It is also becoming a financial services centre, where Calgary companies are recognized as being at the forefront of financing and developing global natural resources. A number of foreign financial institutions have recently established their presence in Calgary, further defining Calgary’s role as Western Canada’s financial centre. Oil and gas companies from all over the world come to Calgary to look for capital investments and are receiving funds from more than just Canadian companies – foreign businesses will often come to Calgary to seek advice and structure the deal in Calgary as opposed to other larger centres because of the experience and expertise that exists in the city. C

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Source: Bloomberg, CIBC World Market and CED

Table 2 Examples of foreign financial institutions operating in Calgary

Firm Financial category

Bank of America Corporate finance

Bank of China Corporate finance and retail banking

Citigroup Corporate finance and retail banking

Barclays Capital Investment banking and investment management

Deutsche Bank Corporate finance and investment banking

Fidelity Investments Wealth management

Fortis Bank Corporate finance

Franklin Templeton (Bissett) Investment advisory

Goldman Sachs Corporate finance

HSBC Full services

ICICI Bank Retail and commercial banking

ING Insurance and online banking

Macquarie Asset management and investment banking

MF Global Brokerage-stock, commodity, and foreign exchange

Merrill Lynch Corporate finance and investment banking

Marsh Insurance brokerage

Morgan Stanley Investment banking and investment management

Royal Bank of Scotland Corporate finance and investment banking

Société Général Corporate finance and wealth management

UBS Corporate finance and wealth management


Calgary’s SURE sector firms have strong relationships with the Alberta venture capital investor community. The Venture Capital Association of Alberta – (www.vcaa.ca) plays a critical role for the sector. It was formed to foster the exchange of information and to promote excellence among key participants in Alberta’s venture capital industry. VCAA membership includes venture capital firms, institutional investors, private equity firms, advisors and service providers with a broad range of interests.

Calgary-headquartered institutions that invest in the SURE sector include:

PODIUM Ventures – (www.podiumfunds.com) assists Calgarians who want to invest in local startups in part by providing access to investing resources, investing in a portfolio of local deals and enabling both on and offline investor input and dialogue. PODIUM Calgary uses its proprietary system to work with the management of the startups to develop quarterly priorities, measure the results and support the growth of these companies.

Peters & Co. Limited – (www.petersco.com) is a full service investment dealer that has specialized in the Canadian energy industries for over 39 years. The company quite often works with early stage companies and maintains a broad network of private and institutional investors for sourcing funds.

Macquarie Tristone – (www.macquarie.com) is a leading acquisitions and divestitures offering primarily based on an energy platform. As well as maintaining many high level industry relationships, Macquarie Tristone brings together a combination of disciplines in engineering, geosciences and economics.

The Howard Group – (www.howardgroupinc.com) is a boutique full-service investor and financial relations firm. The company commonly works with micro and small cap companies over a long period of time in order to establish public market following.

In addition to private-sector capital, several non-profit and public sector organization plays a key role in financing research and commercialization of emerging renewable and sustainable energy technology. Key players include:

The Climate Change and Emissions Management Corporation – (CCEMC, www.ccemc.ca) is a not-for-profit, independent organization with a mandate to expand climate change knowledge, develop new clean technologies and explore practical ways of implementing them. Program money is sourced from the Alberta Climate Change and Emissions Management Fund1 and made available to the CCEMC by the Government of Alberta through a grant agreement. As of April, 2009, the Alberta Climate Change and Emissions Management Fund collected $123 M from firms across Alberta. These funds are transferred to the CCEMC through a grant agreement. Funds can only be spent on initiatives and other measures related to reducing greenhouse gas emissions and improving the ability to adapt to climate change. In June, 2010, CCEMC announced funding for 16 clean technology projects for a total of $71 M. Other funding calls for proposals in 2010 totalled $40 M.

The CCEMC offers the path to investigate emerging opportunities, explore transformative change and act decisively in pursuing conservation, energy efficiency, clean technology and green solutions. The CCEMC is committed to investing in bold ideas that offer enduring solutions.

Alberta Innovates – Energy and Environment Solutions – (www.albertainnovates.ca/energy) With an annual operating fund of $37 million, spent primarily on grants and other funding opportunities, Energy and Environment Solutions has a goal to increase Alberta’s capacity to develop and successfully adapt innovative technologies that maximize the value of Alberta’s natural and renewable resources while protecting the environment.

Alberta Innovates – Technology Futures – (www.albertatechfutures.ca) Through a suite of programs and services for entrepreneurs, companies, researchers and investors, Tech Futures is a one-stop shop that provides technical services and funding support to facilitate the commercialization of technologies, to develop new-knowledge based industry clusters and to establish an entrepreneurial-based culture in Alberta.


Innovate Calgary – (www.innovatecalgary.ca) works with entrepreneurs to help accelerate the success of new technology companies. Innovate Calgary is strongly supported by the University of Calgary, the Chamber of Commerce and The City of Calgary. The Government of Alberta is a significant supporter for the creation of Innovate Calgary and through Alberta Innovates - Technology Futures, have increased funding and support to Innovate Calgary. This also aligns with Technology Futures mandate to support an integrated province-wide research and innovation system that will foster the development and growth of new and existing technology based companies.

CETAC-West – (www.cetacwest.com) is a private sector, not-for-profit corporation committed to helping small and medium-sized enterprises (SMEs) engaged in the development and commercialization of new environmental technologies. Established in 1994 by Environment Canada, CETAC-WEST delivers its services to SMEs in the four western provinces through its office in Calgary. The corporation has formed linkages between technology producers, industry experts, and investment sources to facilitate this process.

The World Alliance for Decentralized Energy – (WADE Canada, www.wadecanada.ca) is a national non-profit industry association which supports the growth and development of the decentralized energy (DE) industry. It is the successor of the New Energy Resources Alliance (NewERA) which was established in April 2002 when two organizations, Climate Change Central and the Alberta Research Council, sponsored a collaborative effort to create an industry-led association dedicated to decentralized energy. WADE works to accelerate the worldwide development of high efficiency cogeneration, onsite power and decentralized renewable energy systems that deliver substantial economic and environmental benefits. WADE helps connect firms with funding for DE Projects.

Alberta Centre for Advanced MNT Products – (ACAMP, www.acamp.ca) is a not-for-profit organization established specifically to service the micro and nano technology fields. ACAMP’s services encompass many areas critical to the commercialization of micro and nano technology (MNT) products, including: marketing and business development; product development; packaging and assembly; and test and characterization. ACAMP is also able to tap into its extensive networks to help locate funding partners. ACAMP is currently working with businesses in the energy, environment and agricultural sectors, primarily on technologies that improve the environmental and economic bottom lines.

Climate Change Central – (CCC, www.climatechangecentral.com) is a non-profit organization that empowers Albertans to take action on climate change through consumer rebate programs, demonstration projects and educational outreach. The organization has also been instrumental in the collective effort of developing a provincial carbon market, the first in Canada. Established in 1999 by the Provincial government, CCC supports the growth of sound environmental solutions by leveraging its position as a market development influencer and relationship broker. CCC is also a funding entity for technology projects in these same fields.

1 Through the Alberta Climate Change Strategy, Alberta gave companies three options for meeting target reductions in carbon emissions: improve the energy efficiency of their operations; buy carbon credits in the Alberta-based offset system or pay $15 into the Climate Change and Emissions Management Fund for every tonne over their reduction target. Facilities could also choose a combination of the options. As of summer 2010, the options for compliance have resulted in approximately 2.6 million tonnes of actual reductions through operational changes and practices - including better use and re-use of energy - and investing in verified offsets created by other Alberta projects. Companies also chose to pay approximately $40 million into the Climate Change and Emissions Management Fund, which, through the Climate Change Emissions Corporation, invests in projects and technology to reduce greenhouse gas emissions in Alberta.


A highly-skilled labour force: business, science, and engineering

As Canada’s recognized energy centre, Calgary naturally has a labour force rich in competencies and skills that drive success in the energy sector. Calgarians are business leaders, researchers, engineers and other professionals that solve problems, develop new markets and create new business across the SURE Sector. Calgarians are confident, hard-working, entrepreneurial and well-educated.

Calgary has a young, dynamic workforce. With 1.2 million residents, the city has the youngest population in Canada with an average age of 36. As of 2009, there were nearly 700,000 workers employed in the Calgary region, and growth in employment in Calgary over the past decade has outpaced all major metropolitan areas in Canada. Seventy-three per cent of Calgarians have attended a post-secondary education institution and over fifty-three per cent have attained a degree or certificate beyond a high school diploma.

Calgary has the highest concentration of engineers, physical scientists and technicians and business and finance professionals of any major city in Canada. Notably, Calgary has Canada’s highest concentration of mechanical engineers, electrical engineers, chemical engineers, geologists, geochemists, geophysicists, architects, accountants, auditors and technical occupations related to natural and applied sciences.

The concentration of skilled professionals has made Calgary one of the most innovative places for new energy technology. Calgary scientists and engineers have been instrumental in the development of techniques for horizontal drilling, shale fracking, steam assisted gravity drainage (SAGD), toe-to-heel air injection and other new technologies for extracting hydrocarbons—many of which were not in use a decade ago. Researchers have also been active in developing environmentally-friendly techniques to use recycled water in place of river water. For example, rather than taking water from the North Saskatchewan River, Suncor draws about nine million litres of wastewater per day from the City of Edmonton’s Gold Bar Wastewater Treatment Facility. Nexen and OPTI Canada are using innovation to turn waste into fuel by turning a heavy oil waste product into a synthetic gas to help fuel its SAGD operation at Long Lake. Calgary’s leadership in innovation offers a competitive advantage for SURE sector firms as they develop and commercialize new clean technology. The combination of engineering, science and business talent has made Calgary one of Canada’s most innovative and successful cities for green technology commercialization and sustainable energy development.

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Figure 4 Business & finance professionals per 1000 workers

Source: Census of Canada, 2006


A policy framework to strengthen the SURE sector

Provincial and municipal policy frameworks play a critical role in the growth of renewable and sustainable energy & technology.

Alberta’s policy framework takes aggressive action on climate change, promotes markets for renewable energy in the deregulated electricity market and provides incentives for bioenergy development. In addition, Alberta’s beneficial tax regime creates an environment in which businesses can operate more profitably and individuals can retain more of their personal income.

Alberta’s provincial policy framework has driven growth in the marketplace of technologies to address climate change. The Province has made a $2.5 billion commitment to the development of carbon capture and storage projects. Alberta was the first province to place a price on carbon through the Provincial greenhouse gas reduction program. The program offers companies options to meet obligations under the Climate Change Action Plan through improvements in their operations, purchase of credits through the Alberta-Based Offset Credit System and the option to contribute to the Climate Change and Emissions Management Fund. Proceeds into the Climate Change Emissions Management Fund are transferred to the Climate Change Emissions

Management Corporation (CCEMC) through a grant agreement and CCEMC, in turn, funds grants to Alberta firms to reduce GHG emissions or improve the ability to adapt to climate change.

Alberta is the only province with a fully deregulated electricity market. Alberta’s vision for electricity includes creating the right conditions to facilitate an electric industry which is competitive, reliable and sustainable. Alberta’s competitive electric market framework has been successful, significant new investment has been made in the industry and a variety of new players are participating in the electricity markets. Because the current transmission system has not kept pace with Alberta’s growing economy, the Province has committed to investments of over $8 billion for improvements to transmission and interties to nearby markets. The investment will ensure that potential renewable or low emission electricity generation in Alberta will not remain location-constrained. There are hydroelectric resources in the northern area of the province, wind and solar in the south and biomass in the northwest.

SURE SECTOR SUPPORTING POLICY FRAMEWORK

PROVINCIAL POLICY

CLIMATE CHANGE ACTION PLAN

DEREGULATED ELECTRICITY MARKET

ENERGY CONSERVATION

BIOENERGY POLICY

GHG REDUCTION PROGRAM

TAX & BUSINESS POLICY

MICRO- GENERATION POLICY

CARBON CAPTURE & STORAGE

RENEWABLE FUELS STANDARDS

ALBERTA-BASED OFFSET CREDIT SYSTEM

CLIMATE CHANGE AND EMISSIONS MANAGEMENT FUND

CCEMC

Figure 5 Provincial policy


Optimal use of power from these sources depends on the ability to bring it to where it is needed. In addition to transmission investments, Alberta has launched a micro generation policy to support growth of micro solar, micro wind and other micro generation by allowing Albertans to generate their own environmentally-friendly electricity and receive credit for any power they send into the grid.

The Province also supports growth of bioenergy through a Nine Point Bioenergy Plan. A key component of the plan is the Bioenergy Producer Credit Program (BPCP) that provides incentives to develop a wide variety of bioenergy products including fuels, power and heat. The program focuses on the great potential for second generation ethanol, which uses feed stocks like forestry, agricultural and municipal waste. Specifically, the program encourages the development of new technologies and facilities that use non-food crops, waste biomass, or wood. The BPCP also supports the provincial Renewable Fuels Standard (RFS), which will be implemented in April 2011. The RFS will require five per cent renewable alcohol in gasoline and two per cent renewable diesel in diesel fuel.

In addition to these policies, Calgarians enjoy a low tax regime. The province of Alberta has no Municipal Sales Tax, Provincial Sales Tax or Provincial General Capital Tax. The province also boasts the lowest Provincial Corporate Tax rate in Canada. In 2006, the Provincial government dropped the general Provincial Corporate Tax rate to 10 per cent from 11.5 per cent to ensure Alberta’s global competitiveness. Calgary businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax and no payroll tax. Since 2001, the Provincial government has cut the small business rate in half (from five per cent to the current three per cent) and more than doubled the small business income threshold to $500,000. Alberta is the only Canadian province to have a flat personal income tax rate (10 per cent). All other Canadian provinces work on a sliding income scale.

Moreover, the Canadian corporate income tax rate has steadily decreased from 22.12 per cent in 2007 to the current rate of 18 per cent (effective January 1, 2010). The Federal Government is committed to further lowering the tax to 15 per cent by 2012 and, as a result, Canada will have the lowest corporate income tax rate in the G7.

SURE SECTOR SUPPORTING POLICY FRAMEWORK

CITY OF CALGARY POLICY

MUNICIPAL CLIMATE CHANGE POLICY

ENERGY SUPPLY AGREEMENTS

ENERGY DEMAND MANAGEMENT STRATEGY

SUSTAINABLE BUILDING POLICY

Figure 6 Municipal policy


The City of Calgary has had a formal greenhouse gas (GHG) reduction policy in place since 1991. The City’s goal is to reduce corporate GHG emissions by 20 per cent by 2020 and 80 per cent by 2050, based on 2005 levels and to pursue parallel strategies within the community. Leading a group of nine World Energy Cities, Calgary led the signing of a municipal climate change accord in 2009. As of January 2009, The City reduced GHG emissions from municipal operations by more than 34 per cent versus 1990 levels, and is on track to beat previous targets. The City expects to achieve a 63 per cent reduction of total municipal GHG emissions by 2012, and to reduce emissions from electricity to zero.

The City of Calgary and ENMAX have signed a long-term electricity agreement to supply the city with renewable electricity. Seventy five percent of the city’s electricity will be supplied by renewable energy through 2011. Beginning in 2012, the amount of renewable electricity that The City will purchase will increase to 100 per cent.

Ride the wind

The City’s first green energy project was Calgary Transit’s Ride the Wind program, which saw Calgary’s Light Rail Transit (LRT), powered 100 per cent by green power beginning in 2001. This initiative made Calgary the first wind powered public transit system in North America and reduced greenhouse gas emissions by 26,000 tonnes annually. Calgary was awarded the 2001 Pollution Prevention Award in the innovations category by the Canadian Council of Ministers of the Environment.

City of Calgary’s energy demand strategy & sustainable design

The City is currently developing a comprehensive energy demand management strategy to identify opportunities and provide guidelines to increase energy efficiency and conservation at City facilities. The strategy will include the development of corporate energy information management software systems, smart sub-metering and energy audit and retrofit plans.

The City of Calgary supports green building and sustainable design practices not only for the benefits to the environment and the citizens of Calgary, but also for the reduced demand on infrastructure and long-term cost savings that result from such projects. It is investing for the future while providing a superior-built environment today.

The City of Calgary’s leadership in climate change policy, energy supply agreements, energy demand management and sustainable building practices has contributed to numerous awards that acknowledge Calgary as one of the greenest cities on the planet.

Table 3 Recent City of Calgary awards

Presented by Award

Mercer Consulting Ranked #1 in Mercer Global Eco-City Index 2010. Calgary ranked as the top eco-city in the planet for its,

“excellent level of service on waste removal, sewage systems, and water drinkability and availability, coupled

with relatively low air pollution.”

The Economist Ranked #5 - World’s Most Livable Cities 2010

Canada Green Building Council Canada Green Building Council awarded Calgary the first ever Government Leadership Award for being

the first municipality to adopt a building policy aimed at achieving LEED (Leadership in Energy and

Environmental Design) Silver standards for new facilities and major renovations of civic buildings.

Project Management Institute The City of Calgary was awarded Project of the Year – Community Advancement for The City’s

implementation of the Blue Cart recycling program, which is the first large-scale cart-based collection

system in the Province.

This initiative made Calgary’s [LRT] the first wind powered public transit system in North America and reduced greenhouse gas emissions by

26,000TONNES ANNUALLY.


Vast natural resources

Source: http://atlas.nrcan.gc.ca/site/english/maps/archives/3rdedition/environment/climate/020

Figure 7 Mean total hours of bright sunshine

MEAN ANNUAL TOTAL HOURS OF BRIGHT SUNSHINE

HOURS

2200

2000

1800

1600

1400

1200

1000

Calgary’s strength in energy is built on the province’s hydrocarbon resources. Few, if any, other cities or regions in the world can match the breadth and depth of these resources. Alberta has significant oil, bitumen, natural gas and coal

resources that must be developed in the most economic, environmentally-friendly way possible to ensure the viability of Alberta’s long-term future.

Alberta also has extensive renewable resources, in particular solar, wind, hydro, and biomass.

Solar

Calgary is the sunniest city in Canada, with an average of 2,405 hours of sun a year, spread over 333 days. Calgary isn’t far from Canada’s sunniest spot, Manyberries, in the southeast corner of Alberta. The hamlet averages 2,567 hours of sun a year, accounting for 55 per cent of its daylight.


Feedstocks for bioenergyAlberta has a wide range of feedstock available for biofuel generation, from forestry residuals to agricultural products and byproducts, to wastes generated in cities and towns. Many of these feedstocks are currently used in small amounts, or for marginally effective purposes and considerable opportunities exist in developing ways to use these resources economically.

The reasonable potential annual feedstock amounts in Alberta translate to an annual energy potential of 457 petajoules (PJ), approximately 22.6 per cent of the total energy consumed in Alberta each year.2

2 See Biofuel Potential for for Alberta (Nickel, 2006) 3 See Update on Alberta’s Hydroelectric Resources, (AUC 2010). These figures refer to what might be developed under favourable economic and other circumstances over a long period into the future. Last Accessed November 2010 at http://www.energy.alberta.ca/Electricity/pdfs/AUCHydroelectricStudy.pdf

Wind

Alberta has a world-class wind resource and is currently one of Canada’s top wind energy producers.

Source: http://www.windatlas.ca/en/maps.php?field=EU&height=80&season=ANU

10

9

8

7

6

5

4

3

m/sLEGEND

Figure 8 Annual mean wind speed at 80 meters

HydroIn Alberta there are five main river basins: the Athabasca; North Saskatchewan; Peace; Slave; and, South Saskatchewan. The ultimate hydroelectric energy potential that could be extracted from these river basins is about 53,000 gigawatt hours per year, or 42,000 gigawatt hours per year at identified sites.3 Approximately 75 per cent per of this ultimate potential is contained in the Athabasca, Peace and Slave River basins within the northern part of the province. The remaining 25 per cent is in the Red Deer River basin and the North and South Saskatchewan River basins within the southern part of the province.

Geothermal energyThe warm earth and ground water below the surface provide a free, renewable source of energy for as long as the sun continues to shine. The earth under an average Alberta residential lot can easily provide enough free energy to heat and cool the home built on it. There are over 13,200 CGC certified residential geoexchange systems installed across Canada that are taking advantage of heat within the earth.


Alberta Innovates – Energy and Environment Solutions www.albertainnovates.ca/energy

Energy and Environment Solutions has a goal to increase Alberta’s capacity to develop and successfully adapt innovative technologies that maximize the value of Alberta’s natural and renewable resources while protecting the environment. Three strategic investment areas include:

1. Energy Technologies – to help Alberta deliver lowest carbon-emissions clean fuels and electricity.

2. Environmental Technologies – to ensure Alberta has the best environmental technologies for a sustainable economy.

3. Renewable and Emerging Resources – to make Alberta a renewable and alternative energy powerhouse.

Alberta Innovates - Technology Futures www.albertatechfutures.ca

Through a suite of programs and services for entrepreneurs, companies, researchers and investors, Tech Futures is a one-stop shop that provides technical services and funding support to facilitate the commercialization of technologies, to develop new-knowledge based industry clusters and to establish an entrepreneurial-based culture in Alberta. Tech Futures’ business is to build globally competitive commerce in

Alberta through:

1. Facilitating the commercial use of new technologies.

2. Developing new knowledge-based industry clusters.

3. Encouraging an entrepreneurial culture in Alberta.

Canada West Foundation www.CWF.ca

With a vision for a dynamic and prosperous west in a strong Canada, the Canada West Foundation has a mandate to explore public policy issues of particular interest to western Canadians, to test national policies against regional aspirations and to ensure an effective regional voice in national policy discussions and the national political process. The Foundation is a leading source of strategic insight, conducting and communicating non-partisan economic and public policy research of importance to the four western provinces and all Canadians.

Canada School of Energy and Environment www.canadaschoolofenergy.com

The vision of the CSEE is to contribute to a future of abundant supplies of clean energy, a vibrant and healthy environment and sustainable prosperity and social well-being for Canadians by informing and collaborating in policy development and by encouraging scientific research and technology commercialization.

Calgary knowledge and networks

KNOWLEDGE & INNOVATION ASSETSRESEARCH & THINK TANKS POST-SECONDARY EDUCATION

ALBERTA INNOVATES ENERGY AND ENVIRONMENT

ENERGY POLICY INSTITUTE OF CANADA

CANADA WEST FOUNDATION

SOLID OXIDE FUEL CELLS CANADA (DEPT CHEMISTRY U OF C)

ALBERTA INNOVATES TECHNOLOGY FUTURES

CANADA SCHOOL OF ENERGY & ENVIRONMENT

CARBOU MANAGEMENT CANADA

CANADIAN ENERGY RESEARCH INSTITUTE

INSTITUTE FOR SUSTAINABLE ENERGY, ENVIRONMENT, AND ECONOMY

INTERNATIONAL RESOURCES INDUSTRIES & SUSTAINABILITY CENTRE

HASKAYNE SCHOOL OF BUSINESS

U OF C CHEMICAL & PETROLEUM ENGINEERING

ENERGY & ENVIRONMENTAL SYSTEMS GROUP

MACPHAIL SCHOOL OF ENERGY

CENTRE FOR ENVIRONMENTAL ENGINEERING, RESEARCH AND EDUCATION

SCHULICH SCHOOL OF ENGINEERING

Figure 9 Calgary research and education assets for sustainable and renewable technology


Collective energy knowledge and advancements in technology are fundamental to expanding the SURE sector. These advancements in Calgary are supported by a network of research and post-secondary institutions, think tanks and innovators within business and government.

Calgary has been successful in attracting national research initiatives focused on research and innovation in GHG emission reductions, renewable energy and energy systems and technologies. Numerous organizations in the city are committed to energy research and support a collaborative environment for developing new ideas.

The mandate of the Canada School of Energy and Environment is to:

1. Create opportunities for national and international collaborations on policy issues affecting energy and environment.

2. Provide advice to industry, academia and government in order to facilitate the development of sound regulations and appropriate legislation to deal with energy development, protect and enhance our environment and encourage the undertaking of cutting edge research in both areas of energy and environment.

3. Coordinate research and academic programming in energy and environment at the three partner universities in Alberta.

4. Facilitate technology transfer and commercialization in the areas of natural resources, energy development and environmental sustainability through proof of principle funding.

5. Facilitate the exchange of research findings and information and promote collaboration among the international community composed of academic and industry researchers, students, government, policy makers and opinion leaders on energy development and environmental research.

Canadian Energy Research Institute www.ceri.ca

The Canadian Energy Research Institute (CERI) is an independent, not-for-profit research establishment created through a partnership of industry, academia and government in 1975. CERI provides relevant, independent, objective economic research in energy and related environmental issues. The Institute envisaged by the Board of Directors is a unique research-focused organization whose output and staff are highly regarded and respected both in Canada and abroad.

CERI’s economic studies are highly relevant and objective and the analysis and advice contained therein are sought by government and business planners and decision-makers. Because of its reputation, the Institute is often represented on national and international advisory panels and at conferences and symposiums deliberating energy and related environmental issues.

Carbon Management Canada – Networks of Centres of Excellence (CMC - NCE)

CMC is a nation-wide, university-led, multidisciplinary research network that develops the game-changing technologies and the business, social and policy frameworks necessary to rapidly reduce carbon emissions associated with fossil fuel production and utilization. In partnership with industry and government, CMC-NCE’s vision is to develop the insights and technologies necessary to cut Canada’s annual GHG emissions by approximately 40 per cent of the national GHG reduction targets.

Carbon Management Canada research funds work in four broad areas:

1. Producing game-changing technologies to recover and process fossil fuels in ways that reduce CO2 emissions.

2. Seeking novel routes and technologies to capture and store all forms of carbon.

3. Discovering safe, secure methods for storing CO2 underground.

4. Creating the policy and regulatory frameworks to allow for the deployment of publicly-accepted technologies.

Energy Policy Institute of Canada www.canadasenergy.ca

The Energy Policy Institute of Canada’s (EPIC) sole purpose is to develop a comprehensive, pan-Canadian approach to energy that will provide the foundation for recommendations to Federal, Provincial and Territorial government authorities responsible for energy and environment policy.

Solid Oxide Fuel Cells Canada Strategic Research Network www.sofccanada.com

The five-year technical goals of the Network are focused on improving the lifetime, performance, and fuel flexibility of two next-generation ‘Made in Canada’ solid oxide fuel cell (SOFC) technologies. These are a metal-supported planar system developed by the National Research Council of Canada (NRC) and an anode-supported tubular SOFC platform developed by Alberta Innovates - Technology Futures (AITF). A longer-term objective is the commercialization of these two technologies.


Calgary’s educational assets The University of Calgary

The University of Calgary (U of C) is a comprehensive research institution that provides a dynamic setting for scholars in 14 faculties, 100+ academic programs and more than 30 research institutes and centres, many of which are deeply connected with Calgary’s energy sector. Over 140,000 alumni have graduated from U of C during its 44-year history.

There are over 29,000 students enrolled in undergraduate, graduate and professional degree programs. The U of C has an academic staff of nearly 1,800 professors and lecturers and a total staff of over 4,900. The university granted 5,888 degrees in 2009-2010. Notable alumni include Stephen Harper, Prime Minister of Canada. The university is has consistently been ranked in the top ten universities in Canada by Macleans (ranked seventh), Higher Education Evaluation Accreditation Council of Taiwan (Ranked seventh), US News and World Reports Top Canadian Universities (ranked ninth) and Research Infosource, Inc. (ranked ninth).

Institute for Sustainable Energy, Environment, and Economy

The University of Calgary created the Institute for Sustainable Energy, Environment, and Economy in consultation with stakeholders in 2003, to deliver on the University’s commitment to become an international leader in energy and environment research, teaching and innovation. At the core is the community of scholars and researchers who are engaged in the activities that characterize excellence in research.

Energy Environmental Systems Group

The Energy and Environmental Systems Group (EESG) is the U of C’s core unit for applied work on problems and issues that arise at the intersection of energy systems and the environment. EESG supports problem-driven, policy-relevant, interdisciplinary research and delivers the Energy and Environmental Systems graduate specialization program. EESG is dedicated to ensuring that its research serves the needs of the broader stakeholder community beyond the University’s walls.

Centre for Environmental Engineering, Research and Education

The Centre for Environmental Engineering Research and Education (CEERE) in the Schulich School of Engineering (SSE) is entrusted with the development and growth of multidisciplinary research and education programs in environmental engineering and energy and environment. The current focus areas include:

• Industrial and hazardous waste management technology;

• Water pollution assessment and control;• Geo-environmental engineering;• Air pollution assessment and control; and,• Clean air and clean water technology.

International Resources Industries and Sustainability (IRIS) Centre

IRIS researches state-of-the-art innovative management practices and its impact on societal issues, both environmental and social, and the role that those practices may play in moving industry towards a more sustainable posture.

Schulich School of Engineering

The Schulich School of Engineering at the University of Calgary is known for strong research, commitment to innovation and international excellence. The Schulich School is ranked among the top engineering schools in Canada. Student leadership and internship programs are helping to train highly skilled engineers who will become leaders in business and innovation. The school is home to:

• 2,840 full-time undergraduates;

• 1,200 graduate students;• 160 faculty members;• 36 internationally recognized research chairs;• Innovative first- and fourth-year design labs; and,• A strong corporate connection in the heart of Canada’s

engineering centre

Chemical & Petroleum Engineering

The department of Chemical and Petroleum Engineering at the Schulich School of Engineering offers both undergraduate and graduate degree programs and has 37 full-time faculty members with 12 prestigious research chairs, including five Canada research chairs, four NSERC Industrial Research Chairs, two endowed research chairs and one university professorship.

Calgary is home to five major public post-secondary institutions and several private colleges including the University of Calgary (29,000 students enrolled), Mount Royal University (13,000 students enrolled), SAIT Polytechnic (14,000 students enrolled), Bow Valley College, and DeVry.


It is an integral component of the Institute for Sustainable Energy, Environment and Economy (ISEEE), which is mandated to focus a coordinated effort to research, develop and commercialize new energy technologies.

Supporting these objectives are several advanced research centres and laboratories including the Centre for Environmental Engineering Research and Education (CEERE), the Tomographic Imaging Porous Media Laboratory (TIPM), the Air Injection/In Situ Combustion Research Group, the Centre for In Situ Energy, the Gas Hydrates Research Group and the Pharmaceutical Production Research Facility (PPRF).

Haskayne School of Business

According to the Beyond Grey Pinstripes business school ranking, University of Calgary’s Haskayne School of Business has one of the best MBA programs, ranking 25 in the world in terms of teaching social and environmental stewardship. In addition, Haskayne is ranked by the Financial Times (London) as having one of the best Executive MBA programs, ranking in the top 50 in the world, and first in Canada for career progress. In 2009-10, the Haskayne School of Business granted 563 degrees. There are over 10,000 alumni of the Haskayne School of Business currently residing in Calgary.

University of Calgary 2500 University Drive NWCalgary, Alberta, Canada T2N 1N4Phone: (403) 220-5110www.ucalgary.ca

SAIT Polytechnic

SAIT Polytechnic offers more than 70 applied degree, diploma, and certificate programs. Including corporate training and special programs, SAIT offers instruction to over 65,000 learners per year. SAIT is internationally renowned for its quality technical education and hands-on training.

The MacPhail School of Energy (MSE) is the first school of energy in Canada and one of only a handful of energy schools in North America. The MacPhail School of Energy offers a range of energy training programs and applied research for students at all points in their careers. Training is available in all major areas of the energy industry, including: petroleum; electrical; chemical; power; instrumentation; chemical engineering; environmental; and, energy asset management.

SAIT Polytechnic1301 – 16 Avenue NWCalgary, Alberta, Canada T2M OL4Phone: (403) 284-7248www.sait.ab.ca

Mount Royal University

Over 13,000 students are enrolled in one of Mount Royal’s more than 60 degree, diploma and certificate programs. In 2008-09 Mount Royal granted 698 degrees, diplomas and certificates. The college employs a staff of over 2,300 including 334 full-time instructors, 520 part-time instructors and 490 continuing education instructors. The employment rate of Mount Royals students is 94 per cent.

Mount Royal University 4825 Richard Road SWCalgary, Alberta, Canada T3E 6K6Phone: (403) 440-6611www.mtroyal.ca

Bow Valley College

Bow Valley College is a workforce preparation and development institution from which over 4,000 students graduated in 2008-09. Bow Valley College provides business and management training to many employees who support Calgary’s SURE sector. The college serves over 10,000 learners per year, across Canada.

Bow Valley College332 – 6 Avenue SECalgary, Alberta, Canada T2G 4S6Phone: (403) 410-1400www.bowvalleycollege.ca

DeVry

DeVry offers bachelor’s degree and diploma programs that combine the best of today’s business skills with current technical applications. DeVry Calgary is the only DeVry institution in Canada and 130 students graduated in 2008-09.

DeVry 2700 – 3 Avenue SECalgary, Alberta, Canada T2A 7W4 Phone: (403) 235-3450 http://www.devry.ca


Quality of life

Ranked number one by Mercer as the greenest city on the planet in the Mercer Global Eco-City Index and ranked by The Economist as the world’s fifth most livable city, Calgary offers tremendous quality of life.

Calgary’s pristine environment, world-class education system, and availability of high quality jobs have attracted people from around the world to Calgary. This has resulted in Calgary becoming one of the most diverse cities in the world. Only 19.4 per cent of Calgary’s total population identifies Canada as their country of origin. While most prevalent origins include England, Scotland, Germany and Ireland, Calgary has a large and growing number of immigrants from developing and developed nations around the globe.

Calgary ranks first out of Canada’s 100 largest cities for sunniest days year-round and in winter.

Calgary’s thriving arts scene reflects the city’s history of spirited enterprise while its accessible recreational opportunities promote personal growth and well-being.

Calgarians have access to affordable and high-quality healthcare. In Alberta, health care is funded through the Alberta Health Care Insurance Plan. The Plan provides full and/or partial coverage for many health services including long-term care, immunization for children and extended benefits for seniors. Alberta Health Services is made up of 117,000 skilled and dedicated health professionals, support staff, 15,000 volunteers and 7,400 physicians.

Calgary is a dynamic centre for learning, offering outstanding educational options from pre-school to the city’s post-secondary institutions. Calgary’s learning environment profiles a variety of world-class programs to prepare its students for the challenges that lie ahead.

Calgary was the first municipality in Canada to receive two Safe Community designations simultaneously: one from the national Safe Communities Foundation and the other from the World Health Organization.

When considered as a whole, the cost of living in Calgary is affordable. The Royal Bank Housing Affordability Index measures a house price in relation to the total payments

required for a mortgage, utilities and property tax. The higher the measure, the more difficult it is to afford a house. On this basis, as of Q1 2010, Calgary offers more affordable housing than Vancouver, Edmonton, Toronto, Montreal, Ottawa and the national average for a standard two-storey house.

Entrepreneurial spiritThe entrepreneurial spirit and boundless optimism of Calgarians make Calgary a world-class destination, a great place to live and do business. A passionate dedication to innovation and a hard-working mentality have driven generations of Calgarians to forge their own way and follow in steps of greatness to reach new heights.

Calgary’s economic growth and prosperity is attracting diverse immigrants from around the world. Growth in employment in Calgary has outpaced all major metropolitan areas in Canada with the employed labour force in Calgary increasing by an impressive 35 per cent over the past decade. Between 2004 and 2009, an average of 8,000 temporary foreign workers entered Calgary each year. As of 2009, Calgary was home to over 13,700 internationals who have become permanent residents. These skilled workers are expanding Calgary’s talent pool, enhancing the entrepreneurial spirit and bringing new ideas.

The diversity of viewpoints, ideas and experiences is making Calgary one of the world’s most creative cities. The combination of creativity, world-class business acumen and extensive energy sector resources are together making Calgary a leader in clean technology commercialization in Canada.


Motive Industries (www.motiveind.com) Motive is a full vehicle development firm focused on advanced materials, technology and innovation to create state-of-the-art transportation solutions. The firm has developed the Kestrel EV, Canada’s first biocomposite electric car.

Founded in California in 2003 by Nathan Armstrong, the company moved to Calgary in 2006. Both of the Armstrong’s children had significant respiratory health problems linked to poor air quality, which immediately began to dissipate once they had transitioned to cleaner air in Calgary.

Motive began to shift in new directions once it was exposed to the unique business environment of Calgary. Nathan found that the attitudes and habits of Calgarians were more conducive to the type of projects that Motive delivers. When Motive approached the local business development organizations about the firm’s Kestrel EV project, they were introduced meeting by meeting to a network of clean technology experts, funders, and other business development groups. Motive had little trouble finding the funding and partners needed for the Kestrel project.

The first round of five Kestrel prototypes are now being built, with the final assembly at SAIT Polytechnic, based in Calgary. SAIT’s green building technologies program will be testing some of the cars alongside Smart Grid technologies.

Case study – commercialization

Calgary is used to big investments, so when I explained that I needed funding for a

project with a turnaround of three to five years, the bank thought it sounded great!

$20

NATHAN ARMSTRONG, CEO MOTIVE INDUSTRIES

MILLION


Source: ProjectEve

Government Institutions Private Media Customers Industrial

Alberta Public Affairs Bureau

Articles & Support

Alberta Agriculture

Industrial Bio-Fibers Program Partner

Alberta Innovates – Technology Futures

Bio-Composite Material Development Partner

Calgary Chamber of Commerce

Support & References


Support & Meetings with Industry Partners

Calgary Technologies Inc.

Workshops & Events

Climate Change Central

Funding & Support

Industrial Research Assistance Program (IRAP)

Funding & Support

Crescent Heights High School

Building of Test Vehicles

Red Deer College

Prototype Manufacturing and Testing

SAIT

Low-Volume Manufacturing of Fleet Vehicles

University of Calgary Haskayne School of Business

Management Software Utility Co-Developer

NAIT

Development of Power System

AVAC

Funding of Agricultural Opportunities

Bennet Jones

Legal Partner

Cenovus Opportunity Fund

Funding & Technology Partner

Innovation Watch

Articles & Support

Price Waterhouse Cooper (PWC)

SR&ED and Tax Consulting

Alberta Vehicles Magazine

Upcoming Story

Business in Calgary Magazine

Article

Calgary Herald

Several Articles

CTV

News Stories

Elemente Magazine

Front-Page Article

Alberta Innovates --Technology Futures

Beta Testing

City of Calgary Fleet Operations

Beta Testing and Purchases

Calgary Technologies Inc.

Beta Testing

Enmax

To be disclosed

ALTA Injection Molding

Manufacturing Partner

Cowan Graphics

Supplier

Excalibur Truck Accessories


FiberWerx


Hannah Test Centre

Testing and Certification

James Classen Consulting

Technical Design Services and Technology

Lethbridge Inland Grain Terminal

Construction of Composite Material Processing Facility

National Technical Services

Testing and Certification

Revolute Power Systems

Power Generation Systems

3M Calgary

Supplier of Paint Films and Interior Coverings

Numerous partners collaborated to make commercialization of the Kestrel a success.


ENMAX Power Corporation and Generate ChoiceENMAX Power Corporation owns, operates and maintains the electricity distribution and transmission network in and around Calgary and is also responsible for billing and retail services in Calgary and five other municipalities in Alberta.

In the summer of 2010, ENMAX launched a $65 million dollar on-site electric generation pilot project that aims to provide microgeneration opportunities to somewhere between 8,000 and 9,000 Alberta homeowners. ENMAX expects for micro-wind and solar installations to be leased to homeowners at a monthly rate that will be lower than the value of the savings on power. This is a net gain for the consumer and a viable long-term investment for ENMAX and their project partners, Climate Change Central, and Climate Change and Emissions Management Corporation. ENMAX has a goal to create an environment where consumers can participate in

broad-scale environmental responsibility initiatives, while ensuring a more stable and efficient energy distribution system at the same time.

Partnerships with ENMAX offer firms in the SURE sector a strong opportunity to deploy new technology in the Calgary market. ENMAX’s vision is to provide customers with access to state-of-the-art, environmentally sensitive generation across the province of Alberta. ENMAX’s Generate Choice solution has low up-front costs for Alberta customers, allowing more customers to embrace possibilities of solar and micro-wind. Through the program, ENMAX is responsible for all material, installation and equipment costs as well as the maintenance and warranty coverage. A similar solar system would cost around $10,000 to purchase, but Alberta customers can obtain a system through ENMAX for about $1,500 initially, and a monthly fees of $40. By lowering the threshold cost for a solar power installation, ENMAX is creating a larger market for SURE sector technologies in Calgary.

www.enmax.com

Case study – distributed microgeneration


Like Motive and ENMAX, many firms benefit from Calgary’s unique SURE sector assets. A sampling of Calgary’s leading clean tech firms are listed below.

Company Area of specialization Website

Alberta Gas Research Inc. Co-generation www.albertagasresearch.com

Aqua-Pure Ventures Inc. Wastewater services www.aqua-pure.com

ASAT Solutions Inc. Smart grid www.asatsolutions.com

Bedford Biofuels Biofuels www.bedfordbiofuels.com

Bio Fuel Canada Biofuels www.biofuelcanada.ca

Canamo Earth Building Technologies Bio-fibres www.canamobuilding.com

Centre for Affordable Water and Sanitation Technology Clean water www.cawst.org

CleanEnergy Geothermal www.alternrg.com

ClearFlow Enviro Systems Group Inc. Environmental impact mitigation www.clearflowconsulting.com

dTechs Electric Profile Management Smart grid www.dtechs.ca

Geospectrum Energy Inc. Renewable systems design n/a

Global Thermoelectric Inc. Distributed energy www.globalte.com

Great Northern Power Distributed energy www.greatnorthernpower.com

Greengate Power Corporation Wind development www.greengatepower.com

INSOIL Canada Limited Energy efficiency www.insoil.ca

Mistaya Engineering Inc. Distributed energy www.mistaya.ca

Motive Industries Inc. Energy efficiency/smart grid www.motiveind.com

New Energy Corporation Inc. Hydro www.newenergycorp.ca

N-solvw Cleaner hydrocarbons www.n-solve.com

Penta Power Turbines Renewables www.pentapowerturbines.com

Power Ecosystems Co-generation www.powerecosystems.com

Profero Energy Inc. Cleaner hydrocarbons www.proferoenergy.com

Questor Technology Inc. Cleaner hydrocarbons www.questortech.com

REM Technology Inc. Energy efficiency www.remtechnology.com

RnR Energy Verticle Axis Wind Turbines www.rnrenergy.ca

Shear Wind Inc. Wind development www.shearwind.com

SLC Petroleum Inc. Biogas www.slcpetroleum.com

Tangent Environmental Technologies Wastewater services www.tangentot.com

Versa Power Systems Cleaner hydrocarbons www.versa-power.com

Westinghouse Plasma Corp. Biomass (Plasma Gasification) www.alternrg.com

Table 4 Selected clean technology firms in Calgary


Energy category Capacity Reported date

Electricity

Total fossil fuel generation 57.6 TW-h Dec. 31, 2009

Hydro

Number of plants 21 Feb. 23, 2010

Installed capacity 890 MW Dec. 31, 2009

Net generation 1.9 TW-h Dec. 31, 2009

Wind

Number of wind farms 24 Jul. 31, 2010

Number of wind turbines 514 Jul. 31, 2010

Installed capacity 653 Jul. 31, 2010

Net generation 0.1 TW-h Dec. 31, 2009

Biomass

Number of plants 6 Dec. 31, 2009

Installed capacity 193.0 MW Dec. 31, 2009

Alternative fuels

Ethanol

Ethanol plants 1 Dec. 31, 2009

Ethanol plant capacity 1 MML/y Dec. 31, 2009

Biodiesel

Biodiesel plants 1 Dec. 31, 2009

Biodiesel production capacity 19 MML/y Dec. 31, 2009

Renewable & clean energy generation Alberta has a growing portfolio of renewable energy. Current installed electric generation capacity includes 890 MW of hydro generation, 653 MW of wind generation, 193 MW of biomass capacity. The province also has a 1 MML/y capacity for ethanol and a 19 MML/y capacity for biodiesel.

Source: Centre for Energy. Last Accessed November 2010 at http://www.centreforenergy.com/FactsStats/Statistics.asp?Template=5,2

Table 5 Snapshot of installed renewable energy generation in Alberta

Calgary SURE sectors


About 11,500 megawatts (MW) of new generation – nearly equal to the current amount of electricity that can be produced in the province of Alberta today – will be needed over the next two decades to meet forecast demand and replace aging power plants.4

As Canada’s only fully deregulated electricity market, Alberta offers extensive opportunities for renewable power generation and smart grid technology. The oil sands industry in Northern Alberta (in the Fort McMurray area) is expected to continue its growth and is an important driver of the need for new electricity infrastructure development across Alberta. In addition, demand will be driven by growth in Alberta’s residential and commercial market. Alberta’s population is expected to increase by over 35 per cent during the next few decades from 3.7 million in 2010 to over 5 million in 2030.5 By 2050, the population is expected to reach nearly 6.1 million.

To ensure growth of renewable energy, Alberta is currently investing $8.1 billion in five critical transmission projects under the AESO long-term Transmission System Plan6:

• New transmission development in southern Alberta to connect more wind farms and deliver power where it is needed throughout the province ($2.45 million);

• Two 500 kilovolt (kV) direct current DC lines that will create a stronger system between Edmonton and Calgary ($3.13 million);

• A 500 kV double circuit alternating current (AC) line between Edmonton and the Industrial Heartland area northeast of Edmonton ($387 million);

• Two 500 kV AC lines to Fort McMurray, including one from the Wabamun Lake area and one from the Industrial Heartland area ($2.05 million); and,

• Facility improvements, including an additional substation or new transmission line, to strengthen the system in and around Calgary ($100 million).

A challenge to widespread growth of renewable electricity is its intermittent nature (i.e. if the wind isn’t blowing, power can’t be produced). This means there is a growing need for reliable interconnections (through interties) to other provinces. Interties to British Columbia to the west, Saskatchewan to the east and the United States to the south provide a huge benefit to Alberta’s wind industry. Currently, work on at least one merchant intertie is in progress. Montana Alberta Tie Ltd., a Calgary-based energy transmission company, is building a 230 kilovolt (kV), 345 kilometre (km) transmission line between Lethbridge, Alberta and Great Falls, Montana. When completed in 2011, it will be the first direct connection between Alberta and the U.S., and will enable development of new projects in both regions.

Alberta’s growing electric power demand

Alberta is currently investing

in five critical transmission projects.

$8.1Billion

4 Powering Albertans Volume 4 Issue 1, Alberta Electric System Operator; Last accessed November 2010 at http://www.aeso.ca/downloads/AESO_Powering_Albertans_V4_Issue_1_Final.pdf

5 Alberta Population Projections 2010-2050, Alberta Finance; Last Accessed November 2010 at http://www.finance.alberta.ca/aboutalberta/population_reports/2010-2050-alberta-population-projections.pdf

6 See Cost of Transmission Upgrades, Last Accessed November 2010 at http://www.aeso.ca/downloads/transmission-charges(1).pdf


ALBERTA

VANCOUVER

SASKATCHEWANBRITISH COLUMBIA

REGINA

EDMONTON

CALGARY

Figure 10 Major wind development in Alberta

Source: Google maps & KDA Global

Calgary’s proximity to wind production assets

Alberta has been a pioneer in wind production in Canada and boasts a current installed wind production capacity of 656 MW. An additional 1,040 MW of new generation capacity is currently contracted and under construction in Alberta and over 7,800 MW of wind projects are currently in the queue for future connection to the grid by the Alberta Electric System Operator (AESO). This is more than double the current installed production capacity for Canada (3,547 MW).

Calgary’s proximity to wind production assets

As Alberta’s largest city, Calgary is conveniently located in close proximity to much of Alberta’s wind development across Southern and central Alberta.

Planning area Planned future generation capacity in the AESO queue (MW)

4-Medicine Hat 1,871

53-Fort Mcleod 1,595

42-Hanna 1,032

49-Stavely 701

55-Glenwood 429

26-Swan Hills 400

43-Sheerness 338

48-Empress 299

45-Stratmore/Blackie 275

52-Vauxhall 250

54-Lethbridge 200

32-Wainwright 150

37-Provost 130

Grand Total 7,670

Source: AESO Queue 2011 and beyond; (Figures as of November 2010) For more information, see AESO Planning areas map, last accessed November 2010 at http://www.aeso.ca/downloads/Planning_Areas_Public.pdf

Table 6 New future planned wind generation capacity by Alberta planning area

Wind power

Calgary wind energy firms currently own or operate over 50 per cent of Canada’s installed wind generation facilities.


Wind developers in Calgary Calgary is the home to Canada’s premier wind developers. Several Calgary-based wind developers are active in the Alberta market, as well as markets around the globe.

TransAlta (www.transalta.com) Headquartered in Calgary, TransAlta is Canada’s largest producer of wind power, operating over a third of the country’s installed wind capacity. TransAlta has over 100 years of experience in the electric market and over approximately $10 billion in assets under management. TransAlta has procured wind resource properties in wind basins in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and the Maritimes. In 2010, the firm achieved a major milestone of over 1,000 MW of installed wind capacity in Canada.

Enbridge (www.enbridge.com) Headquartered in Calgary, Enbridge owns and operates 20 per cent of Canada’s installed wind power capacity. Enbridge manages over $28 billion in assets across all business divisions including seven wind farms in operation or under construction in Alberta, Ontario, Saskatchewan and Colorado (U.S.).

Suncor (www.suncor.com) Based in Calgary, with over $70 billion in assets under management, Suncor is a Canadian pioneer in wind power with four wind farms in operation and other projects in the planning stages. These four farms have a generating capacity of 147 MW and reduce carbon dioxide emissions by approximately 284,000 tonnes each year.

ENMAX Corporation (www.enmax.com) Headquartered in Calgary, ENMAX is a vertically integrated utility that provides electricity, natural gas, renewable energy and value-added services to its customers. ENMAX, and its predecessors, has provided Albertans with electricity for over 100 years and currently has more than 640,000 customer sites throughout Alberta. ENMAX is a wholly owned subsidiary of The City of Calgary with over $3.7 billion in assets under management. ENMAX Green Power Ltd. has 100 per cent interest in the Taber Wind Farm, ENMAX’s latest wind energy venture, and a 50 per cent interest in the McBride Lake Wind Farm located near Fort Macleod in southern Alberta.

Shell Canada (www.Shell.ca) Headquartered in Calgary, Shell Canada is a subsidiary of Royal Duch Shell Corporation. With revenues of $278 billion in 2009, Shell is one of the world’s premier integrated energy giants. Shell has spent over $2 billion on CO2 and renewable energy technologies over the last five years. Shell is involved in wind projects in Europe and North America, with a focus on North America, where eight of the firm’s 11 wind operations are located.

NaturEner Canada (www.naturener.net) With Canadian headquarters in Calgary, NaturEner is now developing more than 1,000 MW of wind power in the United States and Canada. NaturEner is currently active in developing four wind projects in Alberta totaling 464 MW of capacity.

Alberta Wind Energy Corporation (www.albertawindenergy.net<http://www.albertawindenergy.net>) Formed in Calgary in 2003, AWEC is developing over 400 MW of capacity across several projects in southern Alberta. The firm is developing projects in partnership with Luxembourg Mainstream Renewable Power S.A.R.L, a subsidiary of Mainstream Renewable Power Company of Ireland.

Greengate Power Corporation (www.greengatepower.com) Based in Calgary, Greengate Power Corporation is focused on development of quality wind energy projects in Alberta in areas with available transmission capacity. Greengate’s projects under development are in areas with strong wind resources, are geographically diverse and are in transmission-rich areas of Alberta.

ALBERTA WIND ENERGY CORPORATION

Table 7 Selected wind developers in Calgary


There are currently over 50 major wind generation projects planned across the Province of Alberta that have achieved approval for connection to the grid between 2011 and

2015. Generation capacity varies by project, with some larger projects as high at 700 MW. See Appendix B for a complete list of planned wind generation projects.

Source: Survey of Canadian Hydropower Potential, Canadian Hydro Association

Hydroelectric energy Canada is the second largest hydropower producer in the world. Alberta ranks fourth among Canadian provinces and territories for total hydroelectric generation potential with a total potential generation of 11,775 MW.

The Canadian Hydro Association estimates that there is more untapped hydro potential in Alberta than its total existing coal capacity.

Rank Provinces / Territories Technical potential (MW)

1 Québec 44,100

2 British Columbia 33,137

3 Yukon 17,664

4 Alberta 11,775

5 Northwest Territories 11,524

6 Ontario 10,270

7 Manitoba 8,785

8 Newfoundland & Labrador 8,540

9 Nova Scotia 8,499

10 Nunavut 4,307

11 Saskatchewan 3,955

12 New Brunswick 613.8

13 Prince Edward Island 2.6

Canada 163,173

Table 8 Hydroelectric potential by province


New Energy Corporation Inc. (www.newenergycorp.ca) is a

leading developer and manufacturer of in-stream power generation products. In-stream power generation is an emerging sector of renewable power generation, converting the energy within rivers and tidal currents into electricity.

Based in Calgary, the company was founded in December 2003 and has maintained its focus on the in-stream power generation market. The company has taken a methodical approach to the commercialization of its EnCurrent product line, initially introducing smaller models into the market and leveraging the knowledge gained with the

development and operation of these models in order to develop and commercialize larger models.

With the 5, 10 and 25 kW EnCurrent Power Generation Systems available in the marketplace, the company is working to expand its customer base for these products in tandem with scaling up its core technology in order to provide 125 and 250 kW models. These larger models enable the construction of in-stream power generation plants with capacities of up to 5 MW.

In addition to the development of its EnCurrent Power Generation Systems, New Energy has been developing ancillary products to aid in the installation and deployment of its power generation products. The company’s intent in developing these ancillary products has been to decrease the cost and effort required to install its power generation systems.

Alberta currently has nearly 900 MW of installed hydroelectricity generating capacity at 21 hydro facilities. The Brazeau facility, operated by TransAlta, is the largest in the province providing 39 per cent (355 MW) of all Alberta’s hydroelectricity.

TransAlta, through its wholly-owned subsidiaries Canadian Hydro Developers and Glacier Power, is a major Canadian leader in the hydroelectric sector. TransAlta leads hydropower development in Alberta with over 822 MW of installed capacity.

Name Location Generation capacity (MW) Year installed

Brazeau Drayton Valley, AB 355 1965

Bighorn Nordegg, AB 120 1972

Spray Canmore, AB 103 1951

Ghost Cochrane, AB 51 1929

Rundle Canmore, AB 50 1951

Cascade Banff, AB 36 1942

Kananaskis Seebe, AB 19 1913

Bearspaw Calgary, AB 17 1954

Pocaterra Kananaskis, AB 15 1955

Horseshoe Seebe, AB 14 1911

Barrier Seebe, AB 13 1947

Taylor Hydro Magrath, AB 13 2000

Interlakes Kananaskis, AB 5 1955

Belly River Glenwood, AB 3 1991

Three Sisters Canmore, AB 3 1951

Waterton Glenwood, AB 3 1992

St. Mary Magrath, AB 2 1992

Total 822

Table 9 TransAlta installed hydro generation in Alberta

TransAlta has proposed an additional 100-megawatt Dunvegan Hydro Project near Fairview, Alberta. The project is a low-head, run-of-the-river hydroelectric generating facility which, when completed, will provide

enough electricity for more than 80,000 homes. In May 2009, TransAlta received approval from the Natural Resources Conservation Board and the Alberta Utilities Commission to construct and operate the facility.

Case study – hydroelectric energy


Biomass thermal electricity generationCurrently, almost all of Alberta’s 193 MW of biomass-fired electricity capacity is fuelled by wood waste from the province’s forestry industry. The provincial government has provided incentives to develop bioenergy products (including power) through the Bioenergy Producer Credit Program (BPCP). Specifically, the program encourages development of new technologies and facilities that use non-food crops, waste biomass, or wood.

The use of cellulosic biomass for bio-energy at industrial scale has the potential to add 10 to 15 per cent incremental contribution to the energy resources of Alberta7. There are approximately seven million bone-dry tonnes of forest biomass and 15 million bone-dry tonnes of agricultural biomass (crop residue or straw) produced per year in Alberta. The energy content of this biomass is about 380 to 420 petajoules, and this sum comprises the maximum “envelope” of cellulosic bio-energy available in Alberta.

Renewable fuelsGrowth in Alberta’s renewable fuels is supported by the provincial Renewable Fuels Standard that requires five per cent renewable alcohol in gasoline and two per cent renewable diesel in diesel fuel. It is further supported by the Bioenergy Producer Credit Program (BPCP). The BPCP seeks to increase investment in second generation ethanol, which uses feedstocks like forestry, agricultural and municipal waste. Specifically, the program will encourage development of new technologies and facilities that use non-food crops, waste biomass or wood.

There are currently two renewable fuels plants in operation in Alberta and three under construction. The GreenField Ethanol Plant will nearly double Alberta’s ethanol production capacity to 76 MMly. The Canadian Bioenergy Corporation and Kyoto Fuels Corp plants will increase biodiesel production by 291MMly.

Plant name City Feedstock Fuel type Capacity (MMly) Start date

GreenField Ethanol - Enerkem Inc.** Edmonton municipal landfill waste Ethanol 36 N/A

Permolex International, L.P. Red Deer wheat Ethanol 40 1996

Canadian Bioenergy Corporation** Sturgeon County canola Biodiesel 225 N/A

Kyoto Fuels Corp** Lethbridge multi-feedstock Biodiesel 66 N/A

Western Biodiesel Inc. Calgary multi-feedstock Biodiesel 19 2005

** plant currently under constructionSource: Canadian Renewable Fuels Association

7 The 10 to 15 per cent figures represent the upper limit. Source: Biomass Energy Possibilities for Alberta to 2100

7bone-dry tonnes of forest biomass

Million15Millionbone-dry tonnes of agriculture biomass

PRODUCED PER YEAR IN ALBERTA.

Table 10 Renewable fuel plants in Alberta


Bedford Biofuels (www.bedfordbiofuels.com) is a Calgary-headquartered

grower and producer of crude jatropha oil. Jatropha, also commonly known as the “diesel tree”, is a naturally hardy plant that produces oil rich seeds. The oil that is processed from Jatropha seeds can burn up to 78 per cent cleaner than petroleum based diesel products, decreasing emissions and increasing engine life. Bedford maintains 160,000 hectares of farmland in Kenya and is currently securing 300,000 more hectares in Kenya and Zambia to expand operations. The Kenyan government is expected to be the prime consumer, as they are currently a net importer of oil.

Bedford Biofuels decided to base their operations out of Calgary so that they could be near the global headquarters of many of the largest energy sector firms.

Nuclear powerCurrently nuclear power is not produced in Alberta. Following the purchase of nuclear power firm Energy Alberta in 2007, Bruce Power applied in March 2008 for a license to build a nuclear power plant at Lac Cardinal Lake, Alberta. The vision of the plant is to provide nuclear power to the energy-intensive development of the oil sands resources in northern Alberta.

Through an application filed with the Canadian Nuclear Safety Commission, Bruce Power Alberta is seeking approval to prepare a site that could generate 4,000 MW of electricity from two to four reactors that would not produce greenhouse gases or air pollutants. The proposal notes that the first unit could be ready as early as 2017, pending the successful completion of a full Environmental Assessment and consultations with the local communities.

A potential investment of $10 to $13 billion would be required to add the 4,000 MW of generation capacity. Planning and construction of the new reactors may require 10 years and a construction workforce of 4,300 at the peak of the project. Bruce Power estimates that 1,940 long-term jobs could be created to operate the new reactors.

As part of the decision-making process, which could take up to three years to complete, open houses, workshops and community meetings will be held and regular newsletters issued to update residents and seek their input across Alberta.

The Advanced CANDU reactor is designed by Atomic Energy Canada and most of the manufacturing of the reactor takes place in Ontario. Some of the components of a reactor would be manufactured in Calgary and elsewhere in Alberta but it is unclear what proportion of the manufacturing would take place in traditional locations such as Ontario and what would take place in Alberta. The sourcing of components takes considerable advance planning and requires complex management skills – these are skills that Calgary firms have developed from involvement in the complex oil and gas development projects in the province.

A number of Calgary firms would be likely contenders to participate in the design and execution of new transmission capacity expansion that would be needed.

Micro nuclear

Micro-nuclear power technology has the potential to be used in Alberta’s Oilsands. Nuclear power offers a cleaner alternative for producing the heat and power required for in situ production. New fourth generation micro-nuclear designs include those developed by Pebble Bed Modular Reactor Ltd (PBMR) and the General Atomics Gas Turbine – Modular Helium Reactor (GT-MHR) being developed jointly by the U.S. and Russian governments. The PBMR can generate a maximum of 165 MW per module. A typical power plant configuration using GT-MHR reactors would be able to generate around 1,145 MW of electricity.8

8 See Green Bitumen: The Role of Nuclear, Gasification, and CCS in Alberta’s Oil Sands, CERI

Case study – biofuels


Cleaner hydrocarbons

Thermal sources account for the majority of Alberta’s installed generating capacity: coal-fired plants make up almost 50 per cent of the province’s total generating capacity and natural gas accounts for about 40 per cent, including efficient cogeneration at industrial operations that produce energy as a by-product of their normal activities. Cleaner

power from fossil fuels has been a priority for Alberta. The Province of Alberta has shown global leadership in investments in Carbon Capture and Storage and related technologies that have the potential to reduce GHG emissions. Alberta firms are also investing in “clean coal” technology and other techniques to reduce pollution and carbon emissions.

Carbon capture & storage (CSS) Together with renewable energy technologies, nuclear energy and greater energy efficiency, CCS contributes significantly to the least cost route of reducing and stabilizing CO2 emissions in the atmosphere. CCS is a key technology available to mitigate greenhouse gas (GHG) emissions from large-scale fossil fuel usage. The IEA has estimated that, without CCS in the technology mix, the cost of climate stabilization would increase by 70 per cent.

On July 8, 2008, the Alberta Government announced it will contribute $2.5 billion to reduce GHG emissions through new CCS projects. The expected result is five million tonnes in annual reductions by 2015— comparable to taking one million vehicles off the road. CCS provides an opportunity for the province to reduce GHGs while ensuring Alberta’s and Canada’s economic success and growth can continue. This provincial investment is intended to accelerate the development of projects and encourage the necessary investment from industry to make CCS viable in Alberta.

Four projects proponents have signed Letters Of Intent (LOIs) for funding from the $2.5B CCS funding and are now working with the Government of Alberta on grant agreements. These projects were selected following a thorough review of dozens of projects that had submitted Expressions of Interest.

1. The Alberta Carbon Trunk Line (ACTL) will be Alberta’s first CO2 pipeline distribution system, capable of gathering CO2 from several sources in the Alberta’s Industrial Heartland and transporting the CO2 to existing mature oil fields. This is being constructed by Enhance Energy, headquartered in Calgary.

2. The “Quest” project will capture and store 1.2 million tonnes of carbon dioxide annually beginning in 2015 from Shell’s Scotford upgrader.

3. An in situ coal gasification (ISCG) project being developed by Swan Hills Synfuels will access deep coal seams to convert the coal underground into a clean synthetic gas known as syngas.

4. Project Pioneer will utilize leading-edge technology to capture CO2 from TransAlta’s Keephills coal-fired power plant which will be used for enhanced oil recovery (EOR) in nearby conventional oil fields.

The expected result of CSS investment is

5Million

Comparable to taking

vehicles off the road.

tonnes in annual reductions by 2015.

1Million


Integrated Gasification Combined Cycle (IGCC) power plants

Alberta will be home to Canada’s first low-CO2 IGCC power plant. EPCOR Power Generation is planning to build an IGCC power plant featuring carbon capture and storage in Genesee near Edmonton, Alberta. The demonstration plant will have an installed capacity of approximately 270 megawatts.

Integrated gasification combined cycle power plants are expected to replace aging coal power plants. The process offers options to eliminate greenhouse gases, produce hydrogen and/or produce liquid fuels. The process used by IGCC plants can be broken down into five broad steps:

1. The coal is gasified to produce a synthetic gas (syngas).

2. The pollutants are removed from the syngas, then electricity is generated using a combined cycle (consisting of the following three steps):

3. A gas turbine-generator burns the syngas;

4. Heat from the gasification and the exhaust heat from the gas turbine are used to create steam; and,

5. The steam is used to power a steam turbine-generator.

The potential for carbon capture and storage makes IGCC technology even more appealing and environmentally responsible.

Underground coal gasification

Underground coal gasification is a process by which deep coal seams, which are unable to be mined in a traditional manner, are injected with oxygen and non-fresh water. The oxygen facilitates a limited amount of combustion, raising the temperature of the coal and creating steam. The presence of steam combined with the elevated coal temperature and pressure separate the coal into syngas (which is conducted to the surface) and char and ash (which both stay deep underground). Compared to traditional coal mining and processing the underground coal gasification eliminates surface damage and solid waste discharge, and reduces sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions.

Case study – clean coal technology Swan Hills Synfuels

(www.swanhills-synfuels.com) is developing a syngas power

production facility that has received a commitment of $285 million dollars of funding from the province. The project sits on coal deposits that are roughly 1,400 metres deep, and includes a CO2 capture component. The CO2 recovered from the Swan Hills plant will be sent to nearby oil fields and used to recover additional oil from individual wells that have been mostly emptied, which also permanently sequesters the CO2 underground. This project is the first of its kind in North America, and will produce 300 MW of baseload electricity capacity while sequestering over 1.3 million tonnes of CO2 each year.

Clean coal technology

Microgeneration“Distributed generation has the potential to facilitate many of the goals we commonly talk about, specifically improving the efficiency and resiliency of the electricity system, the inclusion of renewable energy and reductions in greenhouse gas emissions from the electricity system.” --John Rilett, Vice President of Climate Change Central (based in Calgary)

Microgeneration can take many forms, but it generally means energy sources not completely reliant on the larger electrical grid but connected to it, so as to sell unused electricity back to the system and buy it when needed. In this way, homeowners and operators of small generation systems are able to achieve a measure of

This project is

the first of its kind in North America, and will produce 300 MW of baseload electricity capacity while sequestering over

tonnes of CO2 each year.

1.3Million


Rank City Average hours of bright sunshine per year

Percentage of daylight hours that are sunny

Average number of days a year with some bright sunshine

1 Calgary 2405 53 333

2 Winnipeg 2372 51 318

3 Regina 2338 50 321

4 Saskatoon 2329 50 320

5 Edmonton 2299 49 321

6 Victoria 2193 46 317

7 Hamilton 2088 45 302

8 Ottawa 2061 45 303

9 Toronto 2038 44 303

10 Montreal 2029 44 304

11 Kingston 1992 43 299

12 Vancouver 1928 40 289

13 Quebec 1905 41 291

14 London 1800 38 288

15 St. John's 1512 33 270

Integrated and distributed energy

9 See National Survey Report of PP Power Applications in Canada 2009, CanmetENERGY. Last Accessed November 2010 at http://www.cansia.ca/sites/default/files/NSR per cent202009Canada per cent20Final per cent20June per cent202010.pdf

energy independence and realize financial benefits that can help offset the costs of adding power-generating technology to residences.

In Alberta, microgeneration is defined as up to one megawatt of electricity produced from renewable sources such as solar, small-scale hydro, wind or biomass. Power can also be derived from high-efficiency co-generation (combined heat and electricity generation) or fuel cells.

Micro wind turbines are small-scale wind turbines that convert wind energy into electricity. Unobstructed areas in a rural setting with high average wind speeds tend to be good micro-wind sites.

ENMAX has set up small-scale wind generation technologies across Alberta and has been tracking and evaluating its performance to identify and bring the best options to Albertans. The micro wind turbines that ENMAX Energy is exploring are 12 feet in diameter and mounted on a 33 foot pole.

See section on ENMAX Power Corporation and Generate Choice earlier in this profile for more information on ENMAX’s investment in micro wind.

Solar powerAccording to the Canadian Solar Industries Association (CanSIA), Canada’s total PV power installed capacity reached 94.57 MW in 2009. In Alberta, most PV Solar installations are off-grid installations in Alberta’s oil patch. While large scale PV solar has recently seen dramatic growth, Canada’s non-residential off-grid installed PV power has also shown long growth. Total installed generation has more than quadrupled from 4.3 MW in 2000 to over 20 MW in 20099. The University of Calgary’s Child Development Centre solar PV system is the largest in Alberta at 43 kW.

Calgary is poised to benefit from micro-solar installations as material costs decline and the provincial microgeneration policy supports growth of the market. Calgary is Canada’s sunniest city with over 333 day of bright sunshine a year, making it an ideal location for growth of micro-solar installations.

Table 11 Selected Statistics on sunshine by metro area


Case study – solarHeadquartered in Calgary, Sustainable Energy

(www.sustainableenergy.com) was formed to design, manufacture and distribute products based on a patented and proprietary power inverter platform which converts extra low voltage direct current inputs into grid quality power with high conversion efficiencies. The firm’s technologies and products hold the potential to make solar electricity in rooftop and building integrated applications cost competitive under real world conditions with electricity from the power grid.

The technology enables solar PV systems to be designed so that each module operates at its optimum power point under all conditions independently of the other modules in the system. This “massively parallel” systems approach reduces losses from partial shading of the PV modules due to normal building congestion and from variances in the orientation of the PV modules due to building design constraints. It also eliminates losses resulting from variances in power output due to manufacturing tolerances. The result is significantly higher yields under real world conditions than can be obtained using conventional solar inverter technologies.

Geothermal heating and coolingGeoExchange is the industry’s term used to describe an alternative to traditional oil- gas- or coal-fired heating, ventilation and air conditioning (HVAC) systems. GeoExchange systems have also been referred to as earth energy systems, or geothermal heat pump systems.

These systems take advantage of the ground’s heating and cooling properties (the same properties that make any basement cooler in the summer and warmer in the winter) to heat or cool entire buildings. This heat ‘exchange’ between the ground and the building is accomplished by using standard pump and compressor technology.

The Canadian GeoExchange Coalition (CGC) estimates that the total market activity of the Canadian GeoExchange industry was $500 million in 2009.

The Canadian GeoExchange industry has experienced phenomenal growth in recent years. The market for ground source heat pumps grew by more than 40 per cent in 2005 over 2004 and by more than 60 per cent annually in 2006, 2007 and 2008. The threefold increase in oil prices between 2005 and 2008 most likely created a price effect strong enough to trigger fuel switching for many consumers. Despite harsh economic conditions, the CGC estimates the market grew by an additional 5 per cent in 2009.10 In Alberta, most of the market for GeoExchange systems (86 per cent) is in new buildings, rather than retrofits.

Calgary’s SAIT Polytechnic offers CGC-recognized courses as part of a program in the School of Construction. This includes CGC’s Installation and Residential Design courses that prepare individuals for GeoExchange accreditation under the CGC Global Quality GeoExchangeTM Program™.

Case studies – geothermal Calgary-based CleanEnergy (www.cleanenergyfuels.com) is a market leader in the GeoExchange

industry. A wholly-owned subsidiary of AlterNRG, CleanEnergy provides heating and cooling for homes and buildings through a GeoExchange system. The firm’s experience spans residential and commercial installations, as well as systems for the Calgary Airport and other large installations.

GeoSpectrum Energy was established in Calgary in 2003 in order to advance key and emerging technologies for self-

sustaining buildings and communities. In late 2009, through collaboration with Statesman Development Corporation and many others, GeoSpectrum developed a comprehensive “Building Integrated Energy System” that includes a combination of many energy conservation measures and a geo-exchange system for heating and cooling that is capable of 320 to 450 percent efficiency. This system will be applied to the “Landings at Cougar Ridge” project. Calgary has proven highly suitable for GeoSpectrum’s advancement, testing and development of solar technology for commercial applications.

10 See The State of the Canadian Geothermal Heat Pump Industry 2010, Canadian GeoExchange Coalition


Energy efficiency & conservation

Alberta market for energy efficiencyCanada represents a $1.6 billion market for energy efficiency in the business sector. Alberta firms are the largest investors in energy efficiency and energy conservation technology systems and represent a $665 million market. The province represents 40 per cent of the total Canadian business & industrial market.

Opportunities also abound in Alberta’s consumer energy-efficiency market. In the most recent survey of retrofitting practices, 40 per cent of Alberta consumers indicated they made an investment in energy retrofitting in the past five years.11 Despite these investments, Alberta households have the highest average energy use per household at 129 gigajoules per household. This is 22 per cent higher than the national average, leaving ample room for energy efficiency improvements in the Alberta consumer market

Source: Environmental Protection Expenditures in the Business Sector

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Figure 11 Canadian market for energy efficiency & energy conservation in the business Sector – ranking by province

11See Statistics Canada: Households and the Environment, Energy Use


Smart grid technology ENMAX next generation utility model

In March 2010, ENMAX announced their collaboration with Cisco on the development of a next generation utility model to ramp up the intelligence and efficiency of Calgary’s electricity infrastructure. The goal of this project is to create a data network infrastructure that is layered on top of the existing power distribution grid. This would allow for greater building energy management, residential energy management, data centre readiness, and renewable energy optimization. The information network would also enable enhanced grid security measures, allowing analysts to pinpoint grid leakages and inefficiencies remotely.

Smart meters

ENMAX has also targeted residential smart meters for application in the Calgary grid. These meters will allow residential customers to take advantage of the hourly pricing structures that are already available to the commercial sector customers, and will allow for optimization of customer based distributed power such as residential PV and wind turbine installations.

Demonstration projects

Funded through a grant from Climate Change Central, SAIT Polytechnic and a number of other partners completed the Home Sensor Project, a demonstration project that aimed to create a new home energy management database and interface for the Net Zero Building Envelope. The project consisted of fitting the school’s net zero carbon footprint demonstration home, Discovery 4, with a number of smart grid compatible sensory components that monitor individual component efficiency. It involved a number of partners, including: Avalon Master Builder, Emercor and TRLabs.

Calgary district heatCalgary is making a $31 million investment in district heating to improve efficiency in downtown Calgary

District energy provides heating through a network of underground insulated pipes and is more efficient than traditional heating systems which have separate boiler systems built into every building. District energy involves the generation and distribution of thermal energy at the community level instead of on a building-specific basis. It consists of one or more centralized heating generation plants interconnected with a network of underground pipes that distribute hot water to the customers.

Calgary leadership

The Calgary Downtown District Energy Centre project involves the development of a heat generation facility located in the downtown core at 9th Avenue and 4th Street SE. The first phase of the development can provide heating for up to 10 million square feet of new or existing residential and commercial buildings. The overall project is a key development in the East Village located in Calgary’s downtown.

Competitive advantages

District heat provides a number of benefits to firms operating in or locating to Calgary. Thermal energy can be provided at a lower cost because of capital and higher operating efficiency advantages that include:

• Shared access to larger scale heating equipment that operates more efficiently, thus reducing environmental impacts;

• A cost-effective alternative to capital investment that would be required to install or upgrade in-house conventional boiler systems;

• Building operating and maintenance cost savings;

• Energy cost stability and predictability over the life of the contract; and,

• Requires only five per cent of the building space conventional boiler rooms would occupy.

Calgary is making a $31 million investment in district heating to improve efficiency in downtown Calgary


Table 12 Alberta cogeneration capacity by type of cogeneration (2009)

Type of generation Generation capacity (MW) Number of plants

Biomass Cogeneration 25 1

Gas Cogeneration 3146 34

Waste Heat 64 5

Grand total 3235 40

Electricity generation using fossil fuels produces the byproduct of heat. Capturing that heat can more than double the useful energy obtained from each unit of fuel. Cogeneration of electricity strongly contributes to Alberta’s energy supply with over

3,235 MW of grid-connected installed generation capacity in 2009. The majority of cogeneration in Alberta is natural gas cogeneration (3,146 MW). The province has one biomass cogeneration facility and five waste heat facilities.

Cogeneration

3500

3000

2500

2000

1500

1000

500

0

1998

1999

2000

2001

2002

2003

2005

MW

2006

2007

2008

2009

YEAR

Figure 12 Total installed cogeneration capacity in Alberta

Source: Alberta Energy (http://www.energy.alberta.ca/Electricity/682.asp), RDA Global Analysis

Source: Alberta Energy (http://www.energy.alberta.ca/Electricity/682.asp), RDA Global Analysis


SURE networks

FUNDING AND BUSINESS SUPPORT

ALBERTA AGRICULTURE

SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA

CLIMATE CHANGE AND EMISSIONS MANAGEMENT CORPORATION

ALBERTA VENTURE CAPITAL ASSOCIATION

CLIMATE CHANGE CENTRAL

CETAC - WEST

WDE CANADA

INDUSTRIAL RESEARCH ASSISTANCE PROGRAM

ALBERTA CENTRE FOR ADVANCED MNT PRODUCTS

INNOVATIVE CALGARY

CALGARY ECONOMIC DEVELOPMENT

ALBERTA INNOVATES: TECHNOLOGY FUTURES

ALBERTA INNOVATES: ENERGY & ENVIRONMENT

INDUSTRY ASSOCIATIONS

CANADIAN BIOENERGY ASSOCIATION

COGENERATION

CANADA

ALBERTA BIODIESEL ASSOCIATION

CANADIAN RENEWABLE FUELS ASSOCIATION

SOLAR ENERGY SOCIETY OF CANADA

CANADIAN GREEN BUILDING COUNCIL

CANADIAN GEO-EXCHANGE COALITION

RENEWABLE ENERGY SOCIETY OF SOUTHERN ALBERTA

ALBERTA COUNCIL OF TECHNOLOGIES (CLEAN TECH)

CANSEA CANWEA CANGEA

INDEPENDENT POWER PRODUCER’S SOCIETY OF ALBERTA

CALGARY ASSOCIATIONS

CALGARY COUNCIL FOR ADVANCED TECHNOLOGY

GREEN CALGARY

SUSTAINABLE INDUSTRIAL DEVELOPMENT FOR THE 21ST CENTURY

SUSTAINABLE CALGARY

CALGARY ENTERPRISE FORUM SOCIETY

ALBERTA ECOTRUST

REAP

STEP IT UP ALBERTA

Figure 13 SURE networks


Organization Website

Alberta Agriculture www.agric.gov.ab.ca/app21/rtw/index.jsp

Alberta Biodiesel Association (ABA) www.albertabiodiesel.org

Alberta Centre for Advanced MNT Products www.acamp.ca

Alberta Council of Technologies www.abctech.ca

Alberta Ecotrust www.albertaecotrust.com

Alberta Innovates Energy and Environment www.albertainnovates.ca/energy

Alberta Innovates Technology Futures www.albertatechfutures.ca

Calgary Council for Advanced Technology www.ccat.org

Calgary Economic Development www.calgaryeconomicdevelopment.com

Calgary Enterprise Forum Society www.calgaryforum.com

Canadian Bioenergy Association www.canbio.ca

Canadian Geo-exchange Coalition www.geo-exchange.ca/en/cgc_visions_strategies_p4.php

Canadian Geothermal Energy Association (CANGEA) www.cangea.ca/about-cangea

Canadian Green Building Council www.cagbc.org

Canadian Renewable Fuels Association www.greenfuels.org/en.aspx

Canadian Solar Energy Association (CANSEA) www.cansia.ca

Canadian Wind Energy Association (CANWEA) www.canwea.ca

CETAC - West www.cetacwest.com

Climate Change and Emissions Management Corporation www.ccemc.ca

Climate Change Central www.climatechangecentral.com

Cogeneration Canada www.cogencanada.org

Green Calgary www.greencalgary.org

Independent Power Producers Society of Alberta (IPPSA) www.ippsa.com

Industrial Research Assistance Program (IRAP) www.nrc-cnrc.gc.ca/eng/ibp/irap.html

Innovate Calgary www.innovatecalgary.ca

REAP – Respect for the Earth and All People www.reapcalgary.com

Renewable Energy Society of Southern Alberta www.ressa.ca

Solar Energy Society of Canada (SESCI) www.sesci.ca

Step it Up Alberta www.stepitupalberta.ca

Sustainable Calgary www.sustainablecalgary.ca

Sustainable Development Technology Canada www.sdtc.ca

Sustainable Industrial Development for the 21st Century www.sid21c.com/index.php

WADE Canada www.wadecanada.ca

Table 13 SURE organization directory


Overview of key policy supporting the SURE sector

Alberta climate change action plan

Alberta’s climate change strategy reflects the Alberta government’s strong commitment to maintaining a healthy economy and quality of life while protecting the environment. It’s a practical and comprehensive approach that addresses not only how much energy is used, but also how Alberta can combine technology and expertise to capture emissions and produce cleaner energy.

Alberta greenhouse gas reduction program

Alberta requires facilities that emit more than 100,000 tonnes of greenhouse gases a year to reduce emissions intensity by 12 per cent, as of July 1, 2007.

Companies have four choices to be in compliance:

1. Make improvements to their operations

2. Purchase Alberta-based offset credits

3. Contribute to the Climate Change and Emissions

Alberta-based offset credit system

One option for large industrial emitters who need to comply with the province’s greenhouse gas emissions reduction program is to purchase offset credits from other sectors that have voluntarily reduced their emissions in Alberta.

Credits must be created using protocols approved by the Alberta government, which were developed in partnership with stakeholders and based on international research. The protocols outline how to quantify and verify emission reductions for different types of projects (i.e. no or reduced tillage, biomass and biofuels).

All credits used to meet the reduction targets must be verified by an independent third party.

The Alberta government also operates an offset credit website in partnership with Climate Change Central (www.carbonoffsetsolutions.ca)

Alberta climate change and emissions management fund

The Climate Change and Emissions Management Fund is another compliance option under Alberta’s emission reduction regulations. Companies that are required to meet the provincial reduction target for greenhouse gas emissions can choose to pay $15 per tonne into the Fund for emissions over the target. The Alberta government is responsible for collecting this money for each compliance year.

The Fund will deliver on the goals of Alberta’s Climate Change Strategy to support the development and application of transformative technologies, as well as improving Alberta’s ability to adapt to climate change.

Appendix A


Climate change and emissions management (CCEMC) corporation

The CCEMC (www.ccemc.ca) is an arms-length organization that is responsible for investing money collected in the Fund into initiatives and projects that support emission reduction technologies and improve the ability to adapt to climate change in Alberta.

Each year, the Alberta government enters into a grant agreement with the CCEMC and transfers the money from the Climate Change and Emissions Management Fund to the CCEMC. As of April 1, 2009 the Fund holds $123.4 million.

Alberta carbon capture and storage

On July 8, 2008, the Alberta Government announced it will contribute $2.5 billion to reduce GHG emissions through new CCS projects. The expected result is five million tonnes in annual reductions by 2015-comparable to taking one million vehicles off the road. CCS provides an opportunity for the province to reduce GHGs while ensuring Alberta’s and Canada’s economic success and growth can continue. This provincial investment is intended to accelerate the development of projects and encourage the necessary investment from industry to make CCS viable in Alberta.

An investment in CCS is also an investment in the environment. CCS in Alberta has the potential to be North America’s largest single source of GHG emissions reductions. CCS demonstrates Alberta’s action to reduce emissions while continuing to be a major supplier of resources that are developed in an environmentally responsible manner.

In Alberta, porous sedimentary rock formations beneath non-porous formations are ideally suited for the injection and long-term, safe and secure storage of carbon dioxide. The CO2 will be separated from other emissions, then dehydrated, compressed and transported by pipeline to a storage site where it will be injected one to two kilometres deep into the porous rock formation. It will then be sealed and monitored by experts to ensure there is no leakage or impact on either public safety or the environment.

Two legislative bills have shaped the policy. Bill 14 – The Carbon Capture and Storage Funding Act (2009) establishes funding for CCS, and Bill 24 – The Carbon Capture and Storage Statutes Amendment Act (2010) clarifies pore space ownership, long-term liability and

creates a post-closure stewardship fund which will cover ongoing monitoring remedial work.

Four projects proponents have signed Letters Of Intent (LOIs) for funding from the CCS funding provided by the Province, and are now working with the Government of Alberta on grant agreements. These projects were selected following a thorough review of dozens of projects that had submitted Expressions of Interest.

1. The Alberta Carbon Trunkline (ACTL) will be Alberta’s first CO2 pipeline distribution system, capable of gathering CO2 from several sources in the Alberta’s Industrial Heartland and transporting the CO2 to existing mature oil fields.

2. Quest will capture and store 1.2 million tonnes of carbon dioxide annually beginning in 2015 from Shell’s Scotford upgrader.

3. Swan Hills Synfuels’ in situ coal gasification (ISCG) project will access deep coal seams to convert the coal underground into a clean synthetic gas known as syngas.

4. TransAlta’s Project Pioneer will utilize leading-edge technology to capture CO2 which will be used for enhanced oil recovery (EOR) in nearby conventional oil fields.

The Alberta Government announced it will contribute

to reduce GHG emissions through new CCS projects.

$2.5Billion


Alberta’s deregulated electric market

Alberta was the first province in Canada to deregulate its electricity industry. Alberta’s retail electricity market was deregulated effective January 1, 2001 to give Albertans increased choice of service providers, encourage construction of new sources of generation and reduce regulatory costs. An important objective of electricity restructuring has been the development of a competitive generation market. Access for all power producers to Alberta’s interconnected transmission grid is integral to the success of electricity generation.

Alberta’s restructured electricity industry has encouraged efficiencies and allowed a new generation supply to come online to keep pace with one of the fastest growing economies in North America. Alberta has seen new generation capacity additions of over 5,800 megawatts (MW) since 1998.

Over 9,600 MW of thermal power and over 9,500 MW of renewable power have been proposed by industry for future development. At present, Alberta has 12,900 MW of installed generating capacity. Peak demand in 2009 (climatic year) was 10,236 MW – up from 9,806 MW in 2008.

Alberta policy to increase electric transmission capacity

Transmission capacity is critical to the growth of Alberta’s renewable energy mix. The foundation for future transmission capacity within the province was laid late in 2008 when the Alberta government issued its Provincial Energy Strategy that called for increased renewable and low emission generation and a comprehensive upgrade to the province’s transmission system. Then in 2009 the Alberta Electric System Operator (AESO) filed its Long-term Transmission System Plan, which identified the need for a number of critical transmission projects.

Alberta is currently investing $8.1 billion in five critical transmission projects under the AESO Long-term Transmission System Plan12 :

• New transmission development in southern Alberta to connect more wind farms and deliver power where it is needed throughout the province ($2.45 million);

• Two 500 kilovolt (kV) direct current DC lines that will create a stronger system between Edmonton and Calgary ($3.13 million);

• A 500 kV double circuit alternating current (AC) line between Edmonton and the Industrial Heartland area northeast of Edmonton ($387 million);

• Two 500 kV AC lines to Fort McMurray, including one from the Wabamun Lake area and one from the Industrial Heartland area ($2.05 million); and,

• Facility improvements, including an additional substation or new transmission line, to strengthen the system in and around Calgary ($100 million).

A challenge to widespread growth of renewable electricity is its intermittent nature (i.e. if the wind isn’t blowing, power can’t be produced). This means there is a growing need for reliable interconnections (through interties) to other provinces. Interties to British Columbia to the west, Saskatchewan to the east and the United States to the south provide a huge benefit to Alberta’s wind industry. Improving Alberta’s intertie interconnections will allow excess wind energy to be developed, exported and not wasted.

Currently, work on at least one merchant intertie is in progress. Montana Alberta Tie Ltd., a Calgary-based energy transmission company, is building a 230 kilovolt (kV), 345 kilometre (km) transmission line between Lethbridge, Alberta and Great Falls, Montana. When completed in 2011, it will be the first direct connection between Alberta and the U.S., and will enable development of new projects in both regions.

12 See Cost of Transmission Upgrades, Last Accessed November 2011 at http://www.aeso.ca/downloads/transmission-charges(1).pdf


Alberta microgeneration policy

In January 2009, the Government of Alberta‘s Microgeneration Regulation came into effect. This regulation is a set of rules that allows Albertans to generate their own environmentally friendly electricity and receive credit for any power they send into the electricity grid, otherwise known as microgeneration. The Alberta Utilities Commission is responsible for overseeing the implementation of the Microgeneration Regulation and has developed guidelines for microgenerators.

Microgeneration is defined as being one megawatt or less connected to the distribution system, with the generator intended to meet all or a portion of the customer’s electricity needs. Customers who generate their own electricity may be credited for any excess energy sent into the distribution network. Microgeneration units must use electricity generated by an environmentally friendly fuel source such as solar panels, small-scale hydro, wind, biomass, micro-cogeneration and fuel cells. Credit is received for electrical energy supplied to the grid, which allows customers to obtain value for every kilowatt hour (kWh) generated. The customer’s retailer must manage the administration and billing of the excess energy sent into the grid. This saves the micro-generator customer direct and indirect administration costs.

All customers who want to become a microgenerator must apply to the Alberta Utilities Commission (AUC) and their distribution company to get approval to connect and operate a generating unit. The four steps to become a microgenerator along with current mirco-generation reporting can also be found on the site.

Alberta bioenergy policy

In 2006, the Government of Alberta committed to a Nine Point Bioenergy Plan that comitted $239 million to aid development of a sustainable bioenergy industry. This initiative has led to more than $850 million in additional private investment with a future potential to leverage over $2 billion in private investment.13

Funding under the Bioenergy Producer Credit Program (BPCP) will be available through 2016. The program helps Alberta meet its climate change targets by reducing emissions while also providing value-added opportunities and long-term stability to Alberta’s agriculture and forestry industries. The program provides incentives to

develop a wide variety of bioenergy products including fuels, power and heat, which will support the Renewable Fuels Standard to be implemented in April 2011. The program focuses on the great potential for second generation ethanol, which uses feedstocks like forestry, agricultural and municipal waste. Specifically, the program will encourage development of new technologies and facilities that use non-food crops, waste biomass or wood.

Bioenergy provides value-added development opportunities for Alberta’s forestry and agriculture sectors and is part of Alberta’s commitment to clean energy production. Alberta’s strong livestock, forestry, canola and grain base can provide a consistent feedstock for bioenergy facilities. Alberta also has 20 million tonnes of annual waste in potential feedstock. Emerging technologies have the potential to convert this waste to bioenergy products, including renewable fuels.

Alberta renewable fuels standard

Alberta’s Renewable Fuels Standard (RFS) will require five per cent renewable alcohol in gasoline and two per cent renewable diesel in diesel fuel. Alberta’s canola, grains, livestock and forestry base has the opportunity to provide a consistent feedstock supply to bioenergy processing facilities. The expansion of Alberta’s bioenergy industry will also offer an opportunity for agricultural producers to sell their crops and materials. Several development opportunities have been proposed throughout the province to make use of municipal, farm and forestry infrastructure with emerging bioenergy technologies. Modern forms of bioenergy include converting biomass to motor fuels and electricity.

City of Calgary climate change policy

The City of Calgary has had a formal greenhouse gas (GHG) reduction policy in place since 1991. The City’s goal is to reduce its corporate GHG emissions by 20 per cent by 2020 and 80 per cent by 2050, based on 2005 levels, and to pursue parallel strategies within the community.

As of January 2009, The City reduced GHG emissions from municipal operations by more than 34 per cent over 1990 levels, and is on track to exceed previous targets. The City expects to achieve a 63 per cent reduction of total municipal GHG emissions by 2012 and to reduce emissions from electricity to zero.

13 Figure as of April 2009. See Facts on Bioenergy, last accessed Nov. 2010 at http://www.energy.alberta.ca/BioEnergy/pdfs/FactSheet_Bioenergy.pdf


Key initiatives include:

• Bold GHG reduction targets – In October 2009, The City of Calgary led the signing of the Calgary Climate Change Accord, committing the participating nine World Energy Cities to reducing the corporate GHG emissions by 20 per cent by 2020 and 80 per cent by 2050, based on 2005 levels. This new plan is called “Target Minus 80” and is comprised on six focus areas:

1. Increasing the use of Green Power;

2. Capturing methane from landfills for energy use;

3. Greening our vehicle fleet;

4. Improving the energy efficiency of buildings and facilities;

5. Conserving water and energy in our facilities; and,

6. Demonstrating new and innovative technologies and practices.

• Low carbon future plan – In 2009, The City of Calgary hosted a series of community roundtable discussions to define actions to reduce its ecological footprint that forms the basis for Calgary’s low carbon future.

• Green initiatives – By 2012, The City’s operations will use 100 per cent green electricity. This is just one of the major initiatives The City is taking to cut GHG emissions.

City of Calgary/ENMAX 100 per cent renewable energy agreement

The City of Calgary and ENMAX have signed a long-term electricity agreement to supply the city with renewable electricity. Seventy five percent of the city’s electricity will be supplied by renewable energy through 2011. Beginning in 2012, the amount of renewable electricity that the city will purchase will increase to 100 per cent. Over the life of the agreement, the avoided greenhouse gas (GHG) emissions are expected to be about 7 million tonnes or equal to about 32,000 rail cars full of coal that won’t be needed to power City operations. That’s equivalent to a train over 500 km long stretching the distance between Calgary and Saskatoon.

The City’s first green energy project was Calgary Transit’s Ride the Wind program , which saw Calgary’s Light Rail Transit (LRT) powered 100 per cent by green power. This initiative made Calgary the first wind powered public transit system in North America and reduced greenhouse gas emissions by 26,000 tonnes annually.

THE CITY’S COMMITMENT TO RENEWABLE ENERGY MEANS THAT THE AVOIDED GREENHOUSE GAS (GHG) EMISSIONS ARE EXPECTED TO BE ABOUT

EQUAL TO ABOUT

7MILLIONTONNES

32,000 RAILCARS

FULL OF COAL THAT WON’T BE NEEDED TO POWER CITY OPERATIONS.

2


Future Alberta wind projects

No Project name Generation (MW) Planning area Year

1 Alberta Wind Energy Old Man River Wind Farm 47 53-Fort Mcleod 2011

2 Pteragen Peace Butte 116 MW Wind Farm 116 4-Medicine Hat 2011

3 Enel Alberta Castle Rock Wind Farm 115 53-Fort Mcleod 2011

4 Suncor Wintering Hills Wind Energy Project 88 43-Sheerness 2011

5 Windy Point Wind Farm 61 53-Fort Mcleod 2012

6 Windcor Buffalo Atlee Wind Farm 99 48-Empress 2012

7 Vindt Willowridge Wind Farm 100 53-Fort Mcleod 2012

8 GlenRidge Wind Farm Phase 1 100 48-Empress 2012

9 Joss Wind Hand Hills Wind Project 80 42-Hanna 2012

10 Acciona New Dayton Wind Energy Project 99 55-Glenwood 2012

11 Suncor Buffalo Hill Wind Energy Project 71 45-Stratmore/Blackie 2012

12 Acciona Fort McLeod Wind Energy Project 99 53-Fort Mcleod 2012

13 Greengate Halkirk Wind Project 150 42-Hanna 2012

14 Greengate Blackspring Ridge I Wind Project 300 49-Stavely 2012

15 AIM Powergen Wrentham Wind Farm 150 52-Vauxhall 2012

16 Renewable Energy Services Ltd PC006 Wind Farm 25 53-Fort Mcleod 2012

17 Fred Olsen Starland F Wind Project 102 42-Hanna 2012

18 Windlab Swan Hills Wind Project 400 26-Swan Hills 2012

19 Windlab Bull Creek Wind Project 130 37-Provost 2012

20 Windlab Hand Hills Project 150 43-Sheerness 2012

21 Windlab Monitor Creek Project 120 42-Hanna 2012

22 Wainwright Wind Project 150 32-Wainwright 2012

23 Naturener Wild Rose Wind Farm 200 4-Medicine Hat 2013

24 Enel Alberta Riverview Wind Farm 115 53-Fort Mcleod 2013

25 Suncor Hand Hills Wind Energy Project 80 42-Hanna 2013

26 Naturener Wild Rose Wind Farm Phase 2 200 4-Medicine Hat 2013

Table 14 Queue for wind generation projects in Alberta 2011-2015

Appendix B

Table continued on the next page.


27 Greengate Stirling 100 MW Wind Farm 100 54-Lethbridge 2013

28 Geilectric Welsh Wind Farm 69 53-Fort Mcleod 2013

29 AltaGas Glenridge Windfarm Phase II 100 48-Empress 2013

30 Invenergy Schuler Wind Farm 300 4-Medicine Hat 2013

31 Fred Olsen Vulcan A Wind Project 102 45-Stratmore/Blackie 2013

32 Fred Olsen Vulcan H Wind Project 102 49-Stavely 2013

33 Sequoia Oyen Wind Project 200 42-Hanna 2013

34 Blood Tribe Wild Turnip Hill Wind Project 100 54-Lethbridge 2013

35 Pikani Energy Corp Wind Project 220 53-Fort Mcleod 2013

36 Fred Olsen Renewables Lethbridge A Project 299 49-Stavely 2013

37 Fred Olsen Wheatland Wind Project 102 45-Stratmore/Blackie 2013

38 TransCanada Neutral Hills Wind Project 150 42-Hanna 2013

39 TransCanada Provost Wind Farm 150 42-Hanna 2013

40 Renewable Energy PC006 McLaughlin Phase 2 Wind Project 48 53-Fort Mcleod 2013

41 Renewable Energy PC004 Walters Wind Project 111 53-Fort Mcleod 2013

42 Cfree Power Hand Hills Wind Project 100 43-Sheerness 2013

43 NaturEner Wild Rose 3 Wind Farm 200 4-Medicine Hat 2013

44 RHOVCubed Energy Ltd. Project 1-17 Wind Project 150 55-Glenwood 2013

45 Shell Wild Steer Butte Wind Farm 75 4-Medicine Hat 2014

46 ENEL Alberta HWY 785 Wind Farm 235 53-Fort Mcleod 2014

47 Suncor - Schuler Wind Energy Project 80 4-Medicine Hat 2014

48 Shell Wild Steer Butte Wind Project 700 4-Medicine Hat 2014

49 Benign Energy Heritage Wind Farm 350 53-Fort Mcleod 2015

50 Naturener Prairie Home Wind Farm 100 52-Vauxhall 2015

51 Old Elm & Pothole Creek Wind Farm 180 55-Glenwood 2015

Total 7,670

Source: ASEO


Action Calgary corporate partners

We are very appreciative of the tremendous support from our Action Calgary partners who provide financial and leadership support to Calgary Economic Development initiatives such as the SURE Sector Profile.

PLATINUM PARTNERS GOLD PARTNERS

SILVER PARTNERSAspen Properties Ltd.ATB FinancialAthene Offices & ServicesCanadian Association of Petroleum Producers (CAPP)

DIRTTEvans Hunt GroupHyatt Regency CalgaryNexen Inc.OPUS Corporation

Pattison Outdoor AdvertisingResort of the Canadian Rockies Inc. (RCR)Sun MicrosystemsWeber Shandwick

ACAD (Alberta College of Art + Design)Axia NetMedia CorporationBennett Jones LLPCalgary Chamber of CommerceCalgary Real Estate BoardCalgary TELUS Convention CentreCenovus Energy Inc.Data Shapers Inc.Devitt & Forand Contractors Inc.ELEMENT Integrated Workplace SolutionsEncana Corporation

First Calgary FinancialGowlings LLPHARMONY by Bordeaux DevelopmentsHaworth Inc.hbi • heritage business interiorsJOE Media GroupKPMGLawson ProjectsMarathon Oil Canada CorporationMatthews SouthwestMosaic StudiosPricewaterhouseCoopers LLP

Quintaro ImagingRBCRGO Office Products LtdSAIT PolytechnicShaw Contract GroupSizeland Evans Interior Design Inc.SNC-Lavalin Inc.Theatre CalgaryUniversity of CalgaryWestern Management ConsultantsWhite Iron Inc.Zoom Web Video Integration

BRONZE PARTNERS

Action Calgary is Calgary Economic Development’s (CED) corporate partnership program. We partner with the Calgary business community to strengthen, diversify and grow Calgary’s economy. Action Calgary initiatives are successful in large part due to the financial investment, leadership and resources from business community partners.

For more information on Action Calgary visit www.calgaryeconomicdevelopment.comor contact our Director, Corporate Engagement at 403-221-7885.

CONTACT INFORMATION

TREES PRESERVED

8NET GREENHOUSE GAS EMISSIONS REDUCED (KG)

802

WASTE WATER (LITER)

24,446SOLID WASTE (KG)

309

ENVIRONMENTAL SAVINGSThis book has been printed on Rolland Enviro 100 and Domtar Cougar Papers.

The following are the results from an eco audit that has been done to show the benefits of

using the chosen papers in comparison to its virgin equivalent

Calgary Economic Development 731 – 1st Street SE Calgary, Alberta

Canada T2G 2G9 T 403.221.7831 or toll-free 1.888.222.5855

F 403.221.7828 Email [email protected]

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SECTOR PROFILE - Calgary Economic Development · 2019-09-23 · 2 SECTOR PROFILE / JANUARY 2011 CALGARY SURE SECTOR ASSETS Calgary has a strong track record in the SURE sector, in