Promoting biomass energy

A number of important initiatives are under way at government, utility and industry levels to encourage the development of biomass energy in Canada.

Government programs
Government policies and incentives can play an important role in encouraging the adoption of biomass energy. These can take the form of:

• research programs to develop the potential of biomass energy technologies
• investment subsidies (such as grants and loans) to developers to support the capital cost of biomass power plants
• renewable portfolio standards that require utilities and retailers to provide a certain portion of their power and energy sales from renewable sources such as biomass
• procurement of new generation from renewable energy sources for government facilities

The Canadian government has established the Ethanol Expansion Program, which is offering $100 million in funding toward ethanol development facilities across the country. The program is intended to expand fuel ethanol production and use in Canada and reduce transportation-related greenhouse gas emissions.

Other federal measures include the CANMET Energy Technology Centre, which assists the development of green power technologies in Canada. Much of the centre’s effort is focused on the development of biofuels, including the production of ethanol from forestry and agricultural wastes.

Provincial governments are also taking actions to promote biomass as part of their generation mix. Quebec, for example, has invited energy developers to respond to a request for proposals (RFP) to add 100 megawatts of biomass generation by 2012. Ontario has issued an RFP for 300 megawatts of green power. And Nova Scotia has issued an RFP for 60 megawatts of renewable energy, including biomass.