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THE POWER of ORGANIC WASTE: Renewable Natural Gas (RNG) for Ontario the Role of Government in Advancing RNG

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THE POWER of ORGANIC WASTE: Renewable Natural Gas (RNG) for Ontario the Role of Government in Advancing RNG THE POWER OF ORGANIC WASTE: Renewable Natural Gas (RNG) for Ontario The Role of Government in Advancing RNG • Cam Carruthers, E.D., Environment & Climate Change Canada • Carlyle Khan, Director, Infrastructure Dev’ment & Asset Mgmt., City of Toronto • Martin Imbleau, VP, GazMetro • MODERATOR: David Donovan, Sr. Advisor – Government Relations, Enbridge Clean Fuel Standard December 2017 Cam Carruthers Context • Pan-Canadian Framework (PCF) – on Clean Energy and Climate Change, announced by First Ministers, December 2016 • Clean Fuel Standard – part of PCF, announced by Minister McKenna, November 2016 ▪ To achieve 30 MT reductions from lower carbon fuels – Discussion Document published in February 2017 – Summary of 125 Comments published – November 7, 2017 – Regulatory Framework – end 2017 - broad elements of the standard, for further consultation during regulatory design period Page 3 – December 5, 2017 Principles • Incremental to current measures • Broad coverage: – Fuels used in transportation, industry and buildings – Liquid, gaseous and solid fuels • Based on: – Reducing carbon intensity – Lifecycle approach • Drive innovation, clean technology, lower carbon and alternative fuels • Market-based approach • Lay foundation to reach 2050 Page 4 – December 5, 2017 CFS Regulatory Framework • Scope – liquid, gaseous and solid fuels combusted for purpose of creating energy • Regulated party - fuel supplier (producer, importer, distributor) • Carbon Intensity (CI) = carbon emitted relative to amount of energy in fuel consumed (e.g. grams of CO2 per megajoule) – baseline levels and targets. – CI calculated using lifecycle approach: cradle to grave – CI targets more stringent over time • Compliance – variety of pathways/mechanisms to provide flexibility. • Review and Update – periodically • Timing – coming into force date to be determined Page 5 – December 5, 2017 CFS Regulatory Framework: Fuels Covered • Fuels used in Transportation: – On-road and off-road sources – Rail, marine and aviation • Fuels used in Industry – a broad range of liquid, solid and gaseous fuels • Fuels used in Buildings – residential, commercial and institutional buildings using fuel for space heating and generating power Page 6 – December 5, 2017 Consultation and Regulatory Process (1) • November 2016 – Minister McKenna announcement • February – April 2017 – Release of Discussion Paper – Subsequent workshops and webinars across stakeholders • April 2017 – Deadline for written comments, over 125 submissions • November 7, 2017 – Release of summary of written comments Page 7 – December 5, 2017 Consultation and Regulatory Process (2) • End 2017 – Release of proposed Regulatory Framework • End 2017 – Winter 2018 – Multi-stakeholder committee / technical working groups – Work on regulatory proposals and technical issues with the Multi-stakeholder committee and working groups – Develop draft regulations • Mid to late 2018 – Publication of proposed regulations, Canada Gazette Part I • 2018- 2019 – Multi-stakeholder engagement continues – Final drafting • 2019 – Publication of final regulations, Canada Gazette Part II Page 8 – December 5, 2017 Contacts • Information – Clean Fuel Standard webpage: https://www.ec.gc.ca/energie-energy/default.asp?lang=En&n=EB5AAF7C-1 – Google Drive with consultation documents: – https://drive.google.com/drive/folders/0B5INNz63xpM_eE3Y0hSandLSWs – Clean Fuel Standard email: [email protected] • Contacts Oil, Gas and Alternative Energy Division: – Cam Carruthers, Executive Director [email protected] – Lynne Patenaude, Manager, Fuels [email protected] – Lorri Thompson, Head, Fuels Regulatory Development [email protected] Page 9 – December 5, 2017 City of Toronto, Solid Waste Management Services Renewable Natural Gas from Biogas/Landfill Gas Carlyle Khan, Director, Infra. Dev & Asset Mgmt. The Power of Organic Waste: Renewable Natural Gas (RNG) for Ontario, December 4, 2017 Solid Waste Management Services Who We Are Mission Statement: To provide innovative waste management services to residents, businesses and visitors within the City of Toronto in a safe, efficient, effective and courteous manner, creating environmental sustainability, promoting diversion and maintaining a clean city. Vision: To be an international leader in the operation of an innovative and sustainable solid waste management utility. Solid Waste Management Services Solid Waste Management Services Solid Waste Management Services Biogas to Landfill Gas Projects • Landfill Gas • Very large quantities of gas • Lower CH4 content • Higher amounts of impurities • Gas amounts decline over time • Potential odour issues • Biogas from Anaerobic Digestion • Lower quantities of gas • Higher CH4 content • Lower amounts of some impurities • Gas flowrates steady over time • Gas flows ongoing during operation Solid Waste Management Services Four Priority Sites for Biogas and Landfill Gas 5.4M m3 per 5.3M m3 per year year Disco Road OPF Dufferin OPF 35.6M m3 per 24.1M m3 per year year Green Lane Landfill Keele Valley Landfill Solid Waste Management Services Potential for a Closed Loop Approach Solid Waste Management Services A Green Fuel Opportunity - RNG • The Opportunity • Lowering Costs and GHG emissions with Compressed Natural Gas/Renewable Natural Gas • CNG Proposition • Economic, Environmental and Social Benefits • Path to Net Neutral Emissions • Greening the Solid Waste fleet with RNG Solid Waste Management Services Flexible Commodity • RNG can be used to: • Offset diesel fuel • Generate renewable electricity Environmental Ex: GHG emissions reductions • Offset traditional natural gas from diesel offset vs NG offset • Be sold through the United States Renewable Fuel Standards Program • Provides excellent flexibility to RNG Project municipalities to maximize economic, environmental, and social factors Triple Bottom Line Assessment • All end-use options will be assessed using a triple bottom line framework to select the Economic Social most appropriate mix Ex: RIN revenue vs fuel sales vs offset costs; future Cap & Ex: Less noisy vehicles vs odour Trade potential; high entry risk; potential for improved cost for NG vehicles health outcomes Solid Waste Management Services Immediate Opportunity to Lower Cost and GHG Emissions • Natural Gas Vehicles is an economical and environmentally-friendly alternative to diesel vehicles • CNG/RNG can fuel many different vehicle types including heavy-duty trucks, buses and streetcars, transportation trucks, trains, freight ships and even garbage trucks. • Converting from diesel to CNG means cleaner air. Solid Waste Management Services RNG Transportation Options • There are three (3) main methods for RNG delivery • Different sites may require different strategies, or a combination of strategies Injection into Virtual pipeline Onsite utilization natural gas grid Solid Waste Management Services Fueling Station Requirements • The Division is examining requirements for future NG fueling stations • Constructed two (2) fill stations at our Bermondsey and Ellesmere Collection Yards, with the third under design, Ingram Collection Yard. • Key considerations include: • Capital cost requirements • Fast fill vs slow fill fueling • Onsite storage • Operating engineer requirements Solid Waste Management Services CNG/RNG Projects • Studying opportunities to leverage our assets to generate renewable energy • Compressed (CNG)/Renewable Natural Gas (RNG) emerged as the priority • Division has decided to pursue Natural Gas (NG) vehicles based on a triple-bottom line approach • The focus is now to leverage the potential to generate RNG from the Division’s anaerobic digestion (AD) facilities and landfills • Next step: identifying the best end-use for our RNG output to generate financial, environmental, and social benefits Solid Waste Management Services Collaboration with Enbridge Gas Distribution • Solid Waste Management Services has benefited from a ongoing collaboration with Enbridge Gas Distribution on: • Design and construction of CNG fill stations and maintenance facilities • Planning and options assessment for RNG distribution infrastructure • Brokerage for RNG end uses • Policy development Solid Waste Management Services Key Points and Future Directions • Solid Waste Management Services has access to a renewable source of energy • Upgrading biogas and landfill gas to pipeline-quality renewable natural gas can produce significant environmental, social and economic benefits • Renewable natural gas projects could lead to an alternative source of revenue for the Division and provide benefits to the City of Toronto • Next step: Successfully deliver the Biogas to RNG Project at Dufferin OPF Solid Waste Management Services But wait, there’s one more slide … Lessons leaned along the way … • Establish a RNG market/demand in Ontario, with supporting policies and frameworks • Develop a guidance manual for RNG projects, including a tool to estimate how much fuel could be generated per year, with potential revenue, payback period, etc. • Encourage municipalities to share organic waste processing capacity • Ensure municipalities and partners are fully aware and have access to Provincial and Federal funding program in a clear manner • Streamline the approval projects for RNG projects, while integrating application data in a manner to support ECA/Noise/Air, etc. applications • Develop policies and frameworks to increase the diversion requirements of organic material, specifically food and kitchen waste • Allocate Cap & Trade Program (C&TP) funds towards
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