The current situation and the future of biomass cogeneration in Canada

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Helsinki University of Technology | Diplomityö
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Date

2004

Department

Konetekniikan osasto

Major/Subject

Energiatekniikka

Mcode

Ene-47

Degree programme

Language

en

Pages

108+13

Series

Abstract

Canada has plenty of biomass energy resources due to its extensive geography. But the utilization of the biomass for energy production is not as extensive as in many European countries. Currently, Canada produces only 6% of its primary energy from biomass. The aim of this literature study is to analyse the reasons behind the slow development rate of biomass cogeneration systems in Canada and also to determine where, how and when biomass-fired systems can be considered as a profitable alternative to current systems, especially those fired by natural gas. As information sources have different literature sources as well as interviews been used. The main reasons why Canada is falling behind many industrialized countries in the expansion of biomass technologies include the lack of supporting market structures and the absence of appropriate government policies and initiatives. Currently, biomass projects do not receive any direct subsidies from the government. Another reason is the lack of knowledge and experience with biomass cogeneration in Canada. One important fact that shapes Canada's current energy policy is the fact that Canada is a country with plenty of energy resources, such as hydro power and natural gas, and therefore the nation does not have to worry about their energy security. That is why they do not have to support any specific domestic energy source such as biomass. But due to the Kyoto protocol and Canada's obligations, Canada's energy policy will probably have to change in the near future. A changed energy policy could bring increased opportunities for biomass systems, especially cogeneration systems. Cogeneration is the simultaneous generation of heat and power. The benefits with cogeneration include a very high overall efficiency and decreased emissions. Today, the capital costs of biomass cogeneration systems are still much higher than the capital costs of natural gas-fired cogeneration systems. Due to this fact, many investors have favoured natural gas-fired systems. In recent years, the price of natural gas has gone up significantly and the price volatility has been large. This has opened new opportunities for biomass cogeneration, especially in the forest industry. The advantage with biomass is that the power plant can receive the fuel at low cost or no cost. This is particularly true at sawmills where the wood waste is available on site. Therefore it can be economically feasible to construct biomass cogeneration plants at sawmills even without any changes to Canada's energy policy. Even at places where natural gas is not available, biomass cogeneration plants can offer a good alternative. One such place is the remote communities in Canada. There the energy demand is large as well as the current fuel costs. Since they are surrounded with forest, they have plenty of biomass available. The interest for biomass systems exists in Canada. As soon as the government and the provinces determine the best way to support more biomass projects and implements some policies to these initiatives, the development of biomass systems and especially cogeneration systems will likely be accelerated.

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Supervisor

Fogelholm, Carl-Johan

Thesis advisor

Snoek, Chris

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Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-2020120450780

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[dipl] Teknillinen korkeakoulu / TKK