Ontario is making solid progress with its plan to convert some of its coal-fired power plants to biomass. And not just co-firing, like what many U.S. jurisdictions are considering, but full out 100 per cent biomass burn. It will prove a key part of Ontario’s greenhouse-gas reduction strategy. A new University of Toronto study has concluded that converting coal-fired units at the Nanticoke and Atikokan plants to burning wood pellets would reduce GHGs by roughly 92 per cent, and this is based on a full lifecycle analysis. On top of that, it would create a local biomass supply chain — for harvesting, pelletization, transportation, etc. — and local jobs that simply don’t exist under a coal-only regime. OPG also plans to operate the plants as peakers, meaning they could be used to help manage renewables (i.e. there would be less natural gas required to perform this balancing act).

I have an update on Ontario Power Generation’s biomass strategy in today’s Clean Break column. OPG will likely convert Atikokan to 100 per cent biomass by 2012, with some units at Nanticoke likely to follow a year later. Lambton and Thunder Bay plants are also being considered. The OPG executive heading up the transition, Chris Young, says the company is seriously investigating a fuel pellet mixture with both wood and agricultural residues (or dedicated crops, like switchgrass). OPG figures that coal plants converted to burning biomass will likely operate for another 10 years before decommissioning, at which point the pellet supply chain will be firmly established and the move to build a distributed fleet of newer biomass-burning plants can begin.

And what is U of T’s estimated cost of supplying electricity from an existing coal plant converted to burning 100 per cent biomass? Roughly 12 cents per kilowatt-hour, which excludes the impact of carbon prices. Given that natural gas won’t stay low forever and will eventually be subject to carbon pricing, this makes the biomass option competitive (also with wind and nuclear) and at the same time is a winner when it comes to local green-collar job creation.

If OPG can pull this off, it would be another Ontario first — and something other jurisdictions can learn from.

My story today in the Toronto Star is about an ambitious electric-car project being spearheaded by the Toronto Atmospheric Fund, which is an agency of the city that promotes and provides grants for projects that reduce air emissions and pollution. Called the EV300 Initiative, the aim is to create a buyer’s club of private- and public-sector fleet managers in the Greater Toronto Area. The goal is to get at least 300 EVs in the program, which would monitor the cars over a year or two and collect data on charging patterns, winter and summer time driving performance, as well as the impact of charging on the grid. Members of the group would be able to exchange information and experiences, while a working group would be set up to analyse the data and make recommendations for what the city can do to prepare for greater penetration of electric vehicles on Toronto streets.

The Toronto Atmospheric Fund has so far signed up several public-sector partners, including Ontario’s Ministry of Transportation, Toronto Hydro, Hydro One  and the Ontario Power Authority, and smaller electric utilities and municipalities that surrounding the city are also being invited to participate. Next month, efforts will begin to start attracting private companies that would like to purchase at least one electric vehicle for their fleet as part of the program. The hope is that the buyer’s club will be set up and committed to a bulk purchase by July 1, which is when provincial incentives (up to $10,000) for purchasing electric cars are supposed to kick in.

So, if you’re in a company with its own vehicle fleet, spread the word. The more who take part in this program the merrier.

BTW: Wonder what Better Place is up to? After a big splash last January in Ontario its interest in the market seems to have faded.  Where’s the electric-vehicle demonstration and education centre it promised?  Where’s the network rollout plan and the investment timeline it was going to put together for Ontario? At least it’s making progress in Denmark, Tokyo and other parts of Europe and Asia, having just raised another $350 million.

They’re calling it the largest integrated solar-wind deal of its kind in the world. Whether or not it’s true, there’s no question that this one ranks high.

South Korean industrial giant Samsung Group signed a deal today with the Ontario government that will see 2,500 megawatts of solar and wind developments and construction of four manufacturing plants between 2013 and 2015. This $7 billion investment from Samsung is expected to create 16,000 jobs — a combination of permanent manufacturing jobs and temporary construction and development jobs. I first broke this story back in late September, but the deal is now official.

The first two plants — one to manufacture wind towers and one to manufacture solar inverters — must be in full operation by March 31, 2013. A solar module assembly facility must be in place by Dec. 31, 2013. Finally, a wind blade manufacturing plant must be in place by Dec. 31, 2015. Samsung, apparently, has long-term plans in the Ontario market, from which it hopes to export its products to the booming U.S. renewable-energy market. As for development projects, Samsung will get the same feed-in-tariff rate as any other company. But to the dismay of those other companies, the Korean consortium that Samsung is part of will get a $437 million economic “adder” — i.e. an incentive to make sure those manufacturing jobs do get created — and will have scarce transmission capacity set aside so the company doesn’t have to wait long in the grid-connection queue.

In addition to Samsung C&T, the consortium includes Korea Electric Power Corporation. Partners with the consortium include Satcon, Pattern Energy Group, and Dongkuk Steel.

See Toronto Star story here for initial details and comment about today’s announcement. See government announcement here and backgrounder here. Certainly more info to come…

Corporate Knights, Canada’s sustainable business magazine, crunched some recent numbers from Environment Canada and found that the country’s Top 10 industrial CO2 emitters reduced their greenhouse gas emissions by 9 per cent in 2008 compared to 2007. At the same time, the Canadian economy grew by 0.5 per cent. Given that the impacts of the economic downturn were felt mostly in 2009, an even greater drop is expected this year. Canada’s Top 350 emitters reduced greenhouse gas emissions by nearly 6 per cent during the same period. Toby Heaps, the magazine’s editor, said it’s proof that Canadian industry can meet carbon-reduction obligations while maintaining economic growth. “While our government says that reducing emissions by 20 per cent over 15 years is a heavy lift, our companies are showing the art of the possible: how almost half of that target can be pulled off in just one year,” said Heaps in a statement issued out of Copenhagen, where he attended the recent international climate talks. Corporate Knights is expected to have a more thorough analysis of the numbers in its January issue.

Ontario is pulling its weight, largely as a result of its coal-phaseout strategy, renewable energy deployment and conservation initiatives. As of the end of October 2009, greenhouse-gas emissions from fossil-fuel (coal and natural gas) power generation is down 40 per cent compared to same 10-month period the previous year, according to Ontario’s Independent Electricity System Operator. What can we expect with the introduction of carbon prices and a cap-and-trade system?

A recent research brief of New Energy Finance looks to Europe for answers. It found that five years after the introduction of a greenhouse gas emissions-trading system the European power sector is factoring carbon prices into future investment decisions. It also found that carbon prices are pushing the sector toward lower-carbon sources of electricity and accelerating the closure of the oldest and dirtiest fossil-fuel plants. “The answer is clearly that European power generators see that the EU ETS is here to stay and that it is starting to affect how they make multi-billion euro investments in new generation capacity,” said Guy Turner, the research firm’s director of carbon market research. ”By 2020 the European generating fleet will be materially cleaner than it is today.”

Something to hope for? Let’s hope so. I’m more a fan of carbon taxes than cap-and-trade, but if the latter is designed correctly, and if we can learn off some of the early mistakes made by the Europeans, clearly it will drive emissions down. The question, then, will be how much it will drive them down, and whether it will be fast enough. That will ultimately depend on the price of carbon, and how many freebie carbon allowances are handed out to industry.

Before I start this post, I want to make one thing clear: an application alone is an expression of interest, not a finished project. With that said, it’s nonetheless encouraging to see the flood of applications come into the Ontario Power Authority’s renewable feed-in-tariff (FIT) program since its Oct. 1 launch. About 80 per cent of The applications, which if all of the projects are built amount to 8,000 megawatts, relate to amount to 80 per cent wind-energy capacity, while 16 per cent of total megawatts are for solar capacity and the rest a combination of biogas/biomass and small hydroelectric. Of the nearly 2,200 applications received, roughly 1,200 are for projects less than 10 kilowatts in size, mostly rooftop solar. Already, 700 of those applications have been approved. (See power authority backgrounder here).

This is a great start for a province that has only peaked above 27,000 megawatts in its history. And these results exclude the huge potential for large offshore wind projects in Lake Ontario and Lake Erie, as well as some larger hydroelectric and pumped storage projects. Again, it’s easy to flag these applications and shout victory, but the hard work is ahead — getting these projects built and generating power for the grid, as well as getting the transmission built to accommodate them. At the moment, there’s only enough transmission capacity to accept about 2,500 megawatts, so shovel-ready projects in capacity-spare areas are being given top priority. If, however, we can get a majority of these projects online within the next few years that will be a major accomplishment as Ontario works toward its goal of phasing out coal power by 2014.