There are many algae technology companies out there, but it’s nice to see these two Ontario companies actually doing something outside of the lab in a way that directly meets the needs of industry. In fact, Pond Biofuels has its sights set on China as well. The company revealed in December that its St. Marys project had been approved as part of the Asia-Pacific Partnership on Clean Development and Climate program. This means it will get funding to do a feasibility study that will assess the suitability of its technology for the cement industry in China.

In other words, it expects it will need 90,000 tonnes annually but wants to break this down into three our four chunks so it can have several suppliers. The final stage of conversion will begin in June 2012 and commissioning of the new equipment will likely start in August. OPG expects full-on commercial operation will happen by December. “The wood fuel pellet supply being considered under this RFIP will have a local content requirement such that the source of the wood fibre and the location of the production facilities that will produce the wood pellets shall be within Ontario,” according to the company. “OPG will require that the wood-based fuel pellets be accompanied by Chain of Custody Certification ensuring that the wood pellets supplied to OPG are manufactured from wood fibre sourced from well managed forests.”

In the Great Lakes St. Lawrence forest region of Ontario it’s estimated that there is about 1.475 million oven dry metric tons of wood fibre available for sustainable harvesting each year, or about 1.25 million if we take into account that some of the biomass will be used as fuel to dry the biofibre. So what OPG is requesting in this initial round is roughly 6 per cent of what’s available — and let’s not forget that pellets made of grass crops are also a potential source of fuel. Let’s keep in mind these converted coal plants will be used as peakers when using biomass fuel. This means there is plenty of biomass available for several units being targeted for conversion at the massive Nanticoke coal plant.

What we’re witnessing here is the beginning of the creation of an entirely new industry in Ontario developed around the need to economically harvest, pelletize and transport biomass fuel pellets to support the province’s coal phaseout strategy. This will create many jobs in parts of the province where jobs are needed most, and will establish a made-in-Ontario biomass fuel supply chain that can support the move to more distributed forms of biomass energy generation. There is plenty of opportunity here for entrepreneurs looking to play a role.

In Ontario, a group called Countryside Energy Co-Op is among a number of community co-ops that have emerged to take advantage of the province’s new feed-in-tariff program. Countryside, a co-op serving southwestern Ontario, seeks out commercial building owners who are willing to lease out their rooftop space for a large PV project. It will then oversee construction of the project and ultimately own and collect feed-in-tariff revenues on behalf of members, which get an annual dividend over 20 years based on the number of shares they own. The program is ideal for “People with unsuitable locations (for example shading due to trees, buildings, etc. which significantly lowers electrical output and therefore revenue) but who want PV can become members of Countryside Energy and invest through Preference Shares, their capital contributing to develop Co-op PV projects on large buildings,” according to a recent press release from the co-op. “As the electricity generated will be connected to the grid, Co-op members will generate and use their own virtual electricity.”

Countryside has partnered with ARISE Technologies Corp., a PV manufacturer and installer based in Waterloo, Ontario. Other co-op style initiatives might just focus on a single projects for a community. For example, the Unitarian Universalist Congregration in Toronto has registered as a co-op and is selling shares within its community to fund a single project that will see PV installed on its church rooftop. The purchase of shares has been strong, showing that there is interest in this kind of model.

It’s nice to see. I can see similar initiatives popping up across the province around schools and community centres.

Ryel told me he’s had trouble getting the media to pay attention to his hunger strike. So I’m posting this here to help him spread the word. He’s got a Facebook page where he’s trying to build up members — so far he’s at 855. He’s calling his activist group Starving for Change. You can see some of the YouTube videos he has posted here.

On the topic of solar, Ontario’s feed-in-tariff program is gaining momentum. On Wednesday the province’s power authority announced the latest batch of projects to be approved under the program — these ones in the 10 kw to 500 kw range. A few surprises: Loblaw Group of Companies, the grocery giant, has applied to have 136 of its stores across Ontario rigged with solar PV systems. If all go ahead, it would amount to 21 megawatts just for this one grocery chain. Loblaw is starting with four pilot projects and will move forward from there depending on the results. Surprisingly, Northland Power Income Fund will be doing the installations. I say “surprising” because I typically associate this company with natural gas and CHP plants.

There also appears to be quite a few schools putting solar on their rooftops, most of the projects being handled by Ameresco. The other big player in this initial round is OZZ International Inc., which has been approved to move forward on several dozen projects across the province.

All this momentum continues to lure foreign manufacturers  and new business models to Ontario. Most recently SMA Solar Technology AG of Germany said it was establishing a 500-megawatt a year solar inverter production facility in the province that would serve the Canadian market. They join Korean’s Samsung, India’s Solar Semiconductor, Germany’s Bosch and potentially Denmark’s Vestas.

The one-hour discussion appears at 8 p.m. and again at 11 p.m. EST.

Tyler

The commercial Internet was still in its infancy and was considered part of the information highway. It was only in the mid-1990s that the Internet emerged as the dominant disruptive force in this technological vision. Internet Protocol, the communications standard underpinning the Internet, allowed all sorts of information — text, audio, video — to be treated as packets of data that could be shipped at high speed across cable and phone networks, which were privately operated networks that had on-ramps and off-ramps to the public Internet. As networks became faster, as compression of data got better, as computing power and memory grew exponentially, it became technologically possible and economical to deliver phone, broadcast, e-commerce, Web surfing and e-mail over both the cable and phone networks. The result: network convergence. Suddenly technology was creating competition in these regulated monopolies, forcing regulators to adapt and establish rules that permitted regulatory forbearance when competition in a market was deemed acceptable. For the phone and cable companies, the gloves were off. It was game on. 

Why am I telling you this? Because I’m seeing the same thing happening in the energy sector. Electric utilities and natural gas utilities — in Canada at least — have operated in largely different worlds, each with their own rules and regulations, each with their own regulated monopolies and turfs. Actually, that isn’t entirely the truth. The electric utilities still offer electric hot-water tanks and electric heating, though this is slowly being phased out. But on the natural gas side, offering electricity directly to residential customers just hasn’t happened. Sure, in some jurisdictions there are parent companies that own both a natural gas utility and electric utility and offer services to customers on the same bill. But that’s not the convergence I’m talking about. I’m talking about using a natural gas pipeline network as direct competition against an electric transmission and distribution network.

I got thinking about this more after Bloom Energy announced its Bloom Energy Server. As far as technology goes, I didn’t see this unveiling as a big deal. Solid-oxide fuel cells have been around for decades. Today, there are several companies working on the same thing. What Bloom comes to the party with is good marketing, high-profile financial backing, and a great vision. By calling it an “energy server” it’s drawing parallels to the Internet, which gave us ubiquitous distributed computing, storage and delivery of information. Bloom is aiming to encourage distributed generation — the idea that power is efficiently produced and delivered close to the point of consumption, rather than generated far away from a central plant and transmitted long distances to the consumer. The latter sounds like mainframe computing from the 1970s and 1980s. We know what happened there. And yes, we do have distributed generation today in the form of rooftop solar, on-farm anaerobic digestors, industrial CHP and community wind farms, but for residential purposes there is nothing economical that can supply all our electricity and heating needs 24-hours a day.

An affordable Bloom Energy Server in every home, or something equivalent, would dramatically change the market landscape. It would allow natural gas to provide electricity, heating and hot-water heating with a single energy source, squeezing out the electric utility altogether. And even if it’s not in the home, large Bloom Energy Servers could be situated in the middle of subdivisions. Connected to a larger natural gas pipe, or better, to a local source of carbon-neutral biogas, one can envision district heat and power systems that are complemented by solar or geothermal. Sure, under this scenario, some wires would need to go into the home, but the community would be effectively off-grid. Again, electric utility gets the squeeze.

This changes the game, and presents challenges to energy regulators that have treated the natural gas and electric folks as distinct industries and markets. Suddenly these overlapping turfs mean something. Competition is possible. Regulation is out of date. This is a trend that will increasingly take hold over the coming decade.

K.R. Sridhar, founder and CEO of Bloom Energy, described his vision this way in the company’s first press release: “We believe that we can have the same kind of impact on energy that the mobile phone had on communications. Just as cell phones circumvented landlines to proliferate telephony, Bloom Energy will enable the adoption of distributed power as a smarter, localized energy source.”

I don’t agree with Sridhar. The cell phone analogy doesn’t work, because he conveniently ignores that you still need a natural gas pipeline. Mind you, if a small village in India wants to turn manure and other waste into biogas and use that to power itself, that would work and the Bloom Energy Server would enable it. Also, the fact that the Bloom box works in reverse means you can hook up a wind mill or solar panel and have it generate storable hydrogen, which can be converted back into electricity by reversing the process again. It’s possible, one day, but a lot of things are possible — let’s stick with what’s practical, economical and likely.

Another reason the cell phone anology doesn’t work is because the compelling part of cell phones is that you can carry them wherever you go. Unless Sridhar has plans for a pocket-sized Bloom Energy Server that operates on the sweat from your body, this won’t have the same impact as wireless portable communications.

I think a more accurate comparison is the impact of the Internet and Internet protocol. Before IP the phone networks and the cable networks operated in their own worlds. With IP they now invade each other’s worlds. We’re seeing something similar unfolding in the energy market. We’re seeing energy convergence.

Sustainable Energy says it plans to move R&D and its inverter manufacturing to Ontario, where a feed-in-tariff program has lured many companies, including Korea’s Samsung, Chinese-focused Canadian Solar and India’s Solar Semiconductor. Denmark’s Vestas is also seriously eyeing Ontario’s offshore wind market.

If Sustainable Energy and Bosch follow through with these plans, it’s likely that Bosch will have to establish some sort of manufacturing footprint in Ontario. Not to produce the thin-film cells, but rather to do module encapsulation. Together, both companies could create several hundred direct jobs, but Bosch’s manufacturing presence would likely be minimal.

What’s unclear is whether Bosch sees Ontario as a launchpad to the United States. Sustainable Energy has indicated that it does, but Bosch has kept relatively quiet and, in all likelihood, if it was to pursue the California market it’s likely to set up assembly facilities there. And like most of the “deals” announced around manufacturing in Ontario, most of this is just talk so far. Samsung has a comprehensive framework agreement with the province, so it appears to be the real deal. The rest are just testing the waters, trying to get a sense of whether they can negotiate more from the Ontario government beyond the generous feed-in-tariffs being offered today. Whether the province is willing to step up with tax breaks and loan guarantees — that’s unclear. But until we get that clarity, most of what we’re hearing is nothing more than noise.

Roughly 50 to 60 big industrial players that connect directly to the province’s transmission system can participate in the program, which was spearheaded by international mining companies XStrata and Vale Inco, as well a steel giant ArcelorMittal Dofasco. The three companies, which formed a working committee that reported to the power authority, estimated that efficiency gains could “realistically” achieve 1,000 megawatts over five years.

Industrial efficiency might not be as sexy as solar and wind — actually, it’s definitely not as sexy — but the simple fact is that the greenest and cheapest megawatt is the one that isn’t used. This is a smart program. Oh yeah, and we shouldn’t forget the stimulus effect. These projects will create much-needed jobs over the next few years.