Yukon Research Centre 1 / 26

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

Yukon Biomass Energy: A literature review Presentation document Yukon Biomass Forum

Forestry, supply chain, harvest, and sustainability Kwanlin Dun Cultural Center, Whitehorse Yukon

MICHEL DUTEAU, biol. MSc Yukon Research Centre, Yukon College, 500 College Drive, Whitehorse YT Y1A 5K4 Phone: (867) 689-8490, Fax: (867) 456-8672, email: mcduteau@hotmail.com

Final version: April 02, 2016

Yukon Cold Climate Innovation Centre at Yukon College

Yukon Research Centre 2 / 26

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

EXECUTIVE SUMMARY

In Yukon, energy is used for heating, electrical appliances, and transports. Opportunities exist to increase the proportion of biomass energy production. A significant proportion of heating energy already is produced from biomass, and a major opportunity exists to further offset fossil fuel and alleviate hydroelectric generation facilities (1,962 TJ/yr). The vast majority of electricity available on the Yukon electrical grid is produced from hydroelectricity, and opportunities exist to offset fossil fuels electricity in off-the-grid communities and to alleviate hydroelectric generation facilities. Little opportunity exists at the moment to offset any fossil fuel transport energy.

In Yukon, biomass can be obtained from a number of feedstocks, which have inherent opportunities and challenges, including pricetag. Potential feedstocks include by-products of industrial activities, such as sawmill residues. Vegetation management activities can also offer raw material for biomass, such as roadside clearings, powersmarting residues, and firestmarting residues. Forest health restoration efforts can offer beetle kills and fire kills as potential biomass feedstocks. Imported biomass still is important to consider too. In Yukon, dedicated biomass crops such as intensively managed forest, short rotation coppice, and energy crops have not received much attention, but are recognized as potential biomass feedstock in other subarctic locales. Last, round (green) wood is seen as a major potential raw material for biomass energy in Yukon, although it still raises concerns in terms of sustainability.

A number of policies and pieces of legislation enacted by different governments can impact the development of the Yukon biomass energy industry. In particular, YGs 2016 Biomass Energy Policy, the Yukon First Nations Final Agreements, the Forest Resources Act (FRA), and the Yukon Environmental Assessment Act (YESAA) concur to the sound and sustainable development of Yukons biomass energy industry.

Economic, environmental, social and technical challenges remain in the development of the Yukon biomass energy industry, which need to be addressed.

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................... 4

CONTEXT ..................................................................................................................................................... 5

ENERGY CONTEXT IN YUKON ............................................................................................................ 5

Energy demand ....................................................................................................................... 5

Potential supplemental biomass energy available in Yukon ................................................... 8

POLITICAL AND REGULATORY CONTEXT IN YUKON ........................................................................ 16

Yukon Biomass Energy Strategy ............................................................................................ 16

Yukon First Nations Final Agreements .................................................................................. 17

Forest Resources Act ............................................................................................................ 17

Yukon Environmental and Socioeconomic Assessment Act .................................................. 19

OPPORTUNITIES AND CHALLENGES .......................................................................................................... 21

ECONOMY 21

Economic opportunities........................................................................................................ 21

Economic challenges ............................................................................................................ 21

ENVIRONMENT ............................................................................................................................... 21

Environmental opportunities ................................................................................................ 21

Environmental challenges..................................................................................................... 21

SOCIETY 22

Societal opportunities........................................................................................................... 22

Societal challenges ............................................................................................................... 22

TECHNICAL CONSIDERATIONS ........................................................................................................ 23

Technical opportunities ........................................................................................................ 23

Technical challenges ............................................................................................................. 23

REFERENCES .............................................................................................................................................. 25

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

INTRODUCTION

This literature review was prepared as an accompanying document for a presentation by Cold Climate Innovation (CCI) at the Yukon Biomass Forum on March 16, 2016 at Kwanlin Dun Cultural Centre in Whitehorse, Yukon.

The intent of the first part of this document is to present the current energy and biomass context in Yukon, as well as the legislative context that can impact development of the biomass energy industry. Energy production and energy consumption figures are presented, as well as potential biomass energy feedstocks. Opportunities to increase biomass energy production are identified, and substantiated with economical and environmental arguments. Whenever possible, the cost of delivered feedstock is presented. However, profitability of the whole lifecycle (e.g. cost of energy production facilities) is beyond the scope of this document.

The intent of the second part of this document is to identify challenges that remain in the development of Yukons biomass energy industry including supply chain.

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

CONTEXT

Energy context in Yukon

Energy demand

Space heating energy

In Yukon, the current heat energy demand is 2,385 TJ/yr (Figure 1; ESC, 2012 in ESC, 2016). Biomass supplies approximately 18% of the current heat energy demand, leaving 82% (1,962 TJ/yr) to non-biomass feedstock. To this day, fossil fuels constitute the greater part of this non-biomass feedstock, supplying 75% (1,786 TJ/yr) of the total heat energy demand these statistics highlight the great dependency of the Territory on fossil fuels for heating supply. Fossil fuels are non-renewable and their usage has a heavy carbon footprint heavier than any renewable energy. In the Yukon context, this poor environmental performance is compounded by the fact that any fossil fuel consumed for heating is imported from out of Territory.

In Canada, on average, biomass supplies 4.5% of the heat energy demand (Bureau of Statistics: Yukon Energy Facts - 2007 in PBrand, 2009). In Yukon, biomass is a traditional heat energy source, and already supplies a higher proportion of heat energy than in the rest of the country.

As the supplemental resource base is recognized substantial (Morrison Hershfield, 2011; Preto, 2011; PBrand, 2009), potential feedstock is not an obstacle to augmenting biomass contribution to heat energy production in Yukon (ESC, 2016).

Figure 1: Estimated total breakdown of energy use for heat in Yukon (adapted from ESC, 2012 in ESC, 2016).

Compared to the country average, heating costs are disproportionally high in all regions of Yukon, largely due to longer, cold winters and high transportation costs (PBrand, 2009). Nearly $60 million per year is spent for heat energy across the Territory (ESC, 2016). In Yukon, fossil fuel heat energy is

Michel Duteau, Cold Climate Innovation Centre

Yukon College | 500 College Drive, PO Box 2799, Whitehorse, Yukon Y1A 5K4

recognized as more expensive than biomass heat energy (Figure 2; ESC, 2016). This is reflected in the fact that while accounting for 75% of total heat energy supply, fossil fuels account for 82% of Yukoners heat energy costs (ESC, 2016). This is a whooping $50 million per year, most of which is leaving the Territory (ESC, 2016). By contrast, the smal