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Evaluation Report: Synthesis of the Clean Energy Science and Technology Sub-program

Table of Contents

Acknowledgements

The Evaluation Project Team would like to thank those who contributed to this project, particularly, NRCan’s Office of Energy Research and Development, as well as all those individuals who provided insights and comments crucial to this evaluation report.

The Evaluation Project Team was managed by Olive Kamanyana, with the support of Edmund Wolfe and under the direction of Jennifer Hollington, Head of Evaluation, Gavin Lemieux and Gerry Godsoe, the Strategic Evaluation Division current and former Directors. Evaluation services were provided by Prairie Research Associates (PRA) Inc.

Appendices

Table of Acronyms

Executive Summary

This document presents the Evaluation Synthesis of the Clean Energy Science and Technology (S&T) Sub-Program.Footnote 1 The Evaluation Synthesis was conducted between August 2013 and June 2014, and focused on the six S&T funding mechanisms and six research, development, and demonstration (RD&D) areas forming the Sub-program. The goal of the Synthesis report is to incorporate the findings from previous evaluations and other data sources to develop a broad understanding of the impacts of NRCan’s clean energy science and technology programming over the past ten years. The majority of these programs have been evaluated previously and the specific program-level recommendations have been implemented. The focus of the report is on issues that span across all program areas rather than any individual program.

Scope and methodology

An evaluation synthesis is a systematic procedure for organizing and analyzing findings from different evaluation studies. By integrating diverse evaluation findings, it aims to establish an easily accessible base of knowledge and identify knowledge gaps or needs with respect to a specific topic upon which future evaluations can buildFootnote 2.  There were, however, limitations to the following Synthesis approach. The programs under review covered ten years of management approaches, program designs and objectives, limiting the extent to which the Synthesis could link program outcomes systematically and clearly across all programs.

The Synthesis contains evidence from seven Clean Energy S&T evaluationsFootnote 3 covering the Office of Energy Research and Development (OERD) activities between 2003-04 and 2013-14, as well as supplemental evidence from an international literature review, bibliometric analysis, a Delphi panelFootnote 4, interviews with key stakeholders and case studies in order to summarize the relevance, effectiveness and efficiency of Clean Energy science and technology (S&T) activities over the ten-year period.

Findings

Program need

Documentary evidence and interviewees indicate that there is a continued need for the activities conducted by the Clean Energy S&T Sub-program, including contributing to Canada’s commitments to reduce greenhouse gas (GHG) emissions and supporting the economic competitiveness and sustainability of Canada’s energy sector. The Evaluation Synthesis found that there is a clear rationale to develop technologies to a pre-commercialization state by funding RD&D activities intended to increase the efficiency of energy production and use, and to facilitate the use of alternative and renewable energy sources. As such, all lines of evidence and previous evaluations concurred on the need to reduce technology development risks inherent in the early stages of the innovation cycle, to encourage private sector investment, and to inform Canadian codes, standards and policies.

Interviewees were clear that Government of Canada participation in clean energy S&T is essential to help ensure Canada’s continued participation in the international innovation system. In particular, the evaluation of CEF showed that there is an ongoing need to fund innovation through clean energy R&D, and small and large-scale demonstration projects. Further, investments in clean energy S&T, including the current ecoEII activities, respond to a continuing need for industry growth, stimulated short- and long-term employment, and increased economic output, while reducing the impact on the environment.

Alignment with government priorities

Documentary evidence and interviews with key stakeholders indicate that the Clean Energy S&T Sub-program is aligned with federal government priorities, including commitments to address climate change and other environmental concerns, and to ensure Canada’s economic competitiveness and sustainability. Previous evaluations found that funding for the Sub-program has been announced through various budgets during the evaluation period, including the announcements for the Clean Energy Fund in 2009, and the ecoENERGY Innovation Initiative in 2011. The 2013 Speech from the Throne highlighted the federal government’s commitment to responsible resource development, including reducing GHG emissions. Finally, the activities under the Sub-program are in line with the Government’s recently announced commitment to reduce GHG emissions by 30% below 2005 levels by 2030.

Alignment with federal roles and responsibilities

The findings from all lines of evidence indicate an appropriate role for the federal government and NRCan in clean energy S&T. Federal involvement in clean energy RD&D is enabled by the Natural Resources Act and the Energy Efficiency Act. Additionally, the federal government may play an important role in responding to market failures (e.g., weak RD&D investment from the private sector) and providing leadership in the area of clean energy S&T. While provinces play a critical role in natural resources and energy (with the exception of nuclear energy), federal government activities in this area were generally viewed by stakeholders as part of the federal mandate for science and technology leadership,  national coordination, supporting provincial regulatory decisions, as well as harmonizing regulations, codes and standards.

The evaluation of the Clean Transportation Systems (CTS) Portfolio noted that Program of Energy Research and Development (PERD)Footnote 5 projects fund R&D that supports policy and regulatory decision-making as well as pre-competitive R&D in targeted technology areas where federal laboratories have unique capacity and facilities, and that NRCan is well integrated into the clean transportation research framework in Canada. 

It was also noted that Canada’s approach to reducing energy-related GHG emissions is consistent with the activities undertaken in other major countries and jurisdictions (e.g., the European Union, China, Australia, and the United States).

Achievement of expected outcomes

The Evaluation Synthesis found evidence of the impact of NRCan’s Clean Energy S&T activities over the last 10 years, including those related to collaboration, the development of the early-stage scientific and technological knowledge base, impacts on codes, regulations and standards, economic and environmental impacts. 

A wide variety of metrics were used to assess program performance across previous evaluations. Generally, the evidence pointed to the following:

  • Effective approaches to collaboration and dissemination with over 1,000 external partners as demonstrated by qualitative research and interviews with stakeholders;
  • Effective production of scientific knowledge as evidenced by strong results from bibliometric analysis;
  • Effective leveraging of investments from partners as evidenced by analyses of financial data (approximately $3.5 billion leveraged from $900 million in federal investmentFootnote 6);
  • Success in advancing the development of technologies as demonstrated by movement in Technology Readiness Levels (TRLs), for example moving pre-commercial technologies to demonstrated at commercial scale and ready for market entry;
  • Success in the development of 50 codes and standards as noted in document and literature reviews; and
  • Recent improvements to the OERD performance measurement system, particularly as it relates to the ability to collect data on environmental and economic impacts at the project level.

Collaboration and partnerships play a critical role in all research areas of the Clean Energy S&T Sub-program, helping technologies move from basic research and knowledge creation to demonstration and deployment. Leveraged funds, both financial and in-kind, and the number of project partners (over 1,000), are key indications of collaboration for the Clean Energy S&T Program. There is clear evidence of stakeholders’ participation in RD&D, without which this program would be limited in its achievement of its expected outcomes. In addition, partnerships helped to set international standards and policies, provide Canada’s perspective to other countries, increase Canada’s credibility in research areas, and facilitate international trade and marketing.

Through the analysis of NRCan publications, the Synthesis found that the Clean Energy S&T Sub-program is an important contributor to clean energy and efficiency technology awareness in Canada. Between 2008 and 2013, the total number of publications in Canada related to the six RD&D areas was 15,024. Of these, 9% were based on internal research conducted by NRCan or external research funded by the department. Within each RD&D area, NRCan internal and external research contributed to between 7% and 23% of the Canadian publications. NRCan’s publications rank between the 1st and the 12th rank in Canada. Previous evaluations indicated that several research areas were engaged in dissemination activities to increase awareness and understanding of clean energy and energy-efficient technologies. However, they also indicated the need to continue these dissemination activities in addition to published research.

Representatives of OERD also noted that NRCan adopted the Technology Readiness Level (TRL)Footnote 7 ratings based on a model developed at the National Aeronautics and Space Administration (NASA) to estimate the extent to which RD&D projects have moved along the innovation chain. The TRL ratings provide OERD with a systematic method to assess and rate the extent to which projects have progressed from early conceptualization to demonstration. The case studies found that RD&D projects under review developed from a TRL of 2 (concept formulated) to a TRL of 8 (system developed and tested/demonstrated in operational environment) or 9 (system proven), suggesting that these projects were effective in producing the expected scientific and technical knowledge.

The Synthesis documented other areas in which progress was made in the development of early-stage clean energy scientific knowledge. The evaluation of the Clean Energy Fund (CEF) noted that the 56 CEF projects demonstrated a strong contribution to the Clean Energy S&T knowledge stream. For example: 

  • Carbon Capture and Storage: NRCan’s Bells Corners Complex has the only integrated testing facility in Canada to complete bench- and pilot-scale testing of high-pressure energy conversion systems (a part of the Carbon Capture and Storage research effort).
  • Atlantic Energy Gateway: AEG interviewees commented that CEF funding allowed the organization to search outside provincial boundaries for technologies that supported GHG emission reduction targets, and created an environment for clean energy technologies to be developed and advanced.
  • Oil Sands: An oil sands project led to the development of a new method that can distinguish between natural background and oil sands production-related sources of naphthenic acid. Improved understanding of the impact of oil sands operations on the environment will inform future codes, standards and regulations.
  • Fuel Cells: A hydrogen and fuel cell project developed and demonstrated a new melt extrusion process described as a “significant breakthrough in lowering the manufacturing cost and accelerating the commercialization of fuel cell technologies.”
  • Stakeholder awareness: 32 R&D projects contributed to 64 peer-reviewed publications, 25 client reports and 120 presentations. Based on the review of project final reports, results from 63% of the projects were being used by external stakeholders to conduct RD&D.

The evaluation of Oil and Gas Activities documented a project related to radar processing for ice hazard detection that developed algorithms to improve the accurate detection and tracking of small ice objects. The Built Environment evaluation documented a project related to deep lake cooling that resulted in the development of a lake-source cooling system to provide air conditioning for office towers.

The development of codes, standards and regulations informed by RD&D projects conducted through the Clean Energy S&T Sub-program was also highlighted in the Synthesis. Over the past 10 years, programs contributed to 50 new or amended codes and standards. Built Environment RD&D, for example, contributed to the National Energy Code for Buildings and informed the development of three standards for the Canadian Standards Association (CSA).Footnote 8 The development of Nationally Appropriate Mitigation Actions (for particulate matter emissions produced from flaring) informed the United States Environmental Protection Agency (US EPA) emission measurement standards and Global Gas Flaring Reduction Partnership policies.

The potential impact of Clean Energy RD&D on enhanced market opportunities for Canadian companies through the commercialization of technologies, and sustainable resource development was also assessed. The case studies conducted as part of this evaluation provided examples of the impact of Clean Energy RD&D in areas such as the Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues projects, which created a potential for new industries using wood residues, biomass resources (e.g., switchgrass), and agricultural waste feed stocks (e.g., grain chaff). Small-scale demonstration projects under the CEF program reported discussion with 1,111 potential adopters. At the time of the evaluation, the estimated dollar value of potential deals totaled $8 billion.

Estimates of economic benefits remain challenging as it is difficult to attribute economic impact to a particular research area as direct linkages to the foundational R&D become diluted as the technology is further developed. Further, economic competitiveness depends significantly on external market factors (such as energy prices). However, OERD provided documentation that demonstrates a revised project management approach, particularly since the launch of the ecoEII program, to address this reporting limitation. Proponents are now required to provide measures of economic impacts, such as estimates of technology economic potential and job creation for five years after the completion of the project. 

The Synthesis also assessed the available evidence related to environmental outcomes. The evidence was wide-ranging, covering several evaluations and supplementary methods and pointed to clear examples of positive environmental impacts. At present, OERD estimates that past energy technology programs will directly reduce GHG emissions by up to 5.05 Mt/year by 2019, with the potential for further reductions with commercialization and market adoption of technologies developed through this programming.  

Evidence from previous evaluations noted program-specific estimates of environmental impacts.

  • Evidence from the Technology Early Action Measures (TEAM) program estimated that collectively, 49 demonstration projectsFootnote 9 could contribute to reducing GHG emissions by 525,210 tCO2e/year.
  • The two large-scale CEF projects (i.e., Shell Quest, Enhance Alberta Carbon Trunk Line) may be able to sequester approximately 2.2 megatonnes of CO2 per year.
  • Small-scale CEF demonstration projects resulted in estimated environmental impacts through energy generated by renewables totaling 3.7 million kWh/year, peak demand reduction of 2,330 kW, energy saved totaling 18.2 million kWh/year, displaced volume of diesel of 13,800 L and decreased NO2.  

The evidence was, however, based primarily on project-level data, making it challenging to report at a program level or provide a comparable benchmark for environmental benefits. As noted above, OERD is now requiring post-project reporting to capture potential environmental benefits such as GHG reductions in order to facilitate program-level reporting.

Efficiency and Economy

The Synthesis identified a broad range of factors that both supported and challenged the achievement of intended outcomes. On the positive side, factors such as NRCan’s long-term commitment to RD&D, effective leveraging, NRCan’s RD&D expertise, NRCan research facilities and equipment, and NRCan participation in international committees were all cited as key elements to program success. The Evaluation Synthesis also highlighted barriers documented in previous evaluations. These included both ongoing program management challenges, such as uneven funding during the ten-year period, or contextual issues, such as  a lack of a nation-wide clean energy regulatory framework, the weak state of the macro-economy in 2008, intellectual property rights, challenges in staffing Footnote 10 and  barriers imposed by existing regulationsFootnote 11. OERD has taken steps to improve the efficiency of the Clean Energy S&T Sub-program through reducing the number of related RD&D portfolios and by using standardized proposal review and selection processes since 2007-08 and by taking steps to systematically improve the collection and reporting on outcomes after the project’s funding has ended. 

Evaluations such as those for CTS and CEF highlighted the impact of partnerships on the efficient and economic delivery of RD&D, particularly related to leveraging funding. The CTS evaluation noted, for example, that international interest in magnesium R&D in the automotive sector resulted in leveraged funds with investments made in the US and China. A general estimate, based on the information contained in the previous evaluations, suggests that every dollar of NRCan funding provided to the Clean Energy S&T Sub-program leveraged an average of $1.41 in cash and in-kind contributions from other federal departments, provincial governments, and industry.

Case studies conducted during the synthesis also illustrated the importance of collaborations to the achievement of RD&D on clean energy technologies, for example:

  • Key collaborators in the Deep Lake Water Cooling project included NRCan, the City of Toronto, Enwave, and the Toronto Environmental Alliance.
  • Environment Canada and China established an agreement to collaborate on applying the Wind Energy Simulation Toolkit (WEST) system to prepare a wind atlas for China. Additionally, Mexico expressed interest in establishing a similar agreement.
  • Research into, and development of, ice detection radar was made possible through a 10-year partnership between NRCan, Transport Canada, the Canada Coast Guard, and Rutter Technologies.

One key challenge highlighted in previous evaluations is performance reporting and the tracking of financial data. Nearly every evaluation covered under the Synthesis made a recommendation related to improving performance and related monitoring systems.

There are clear challenges to reporting RD&D outcome data systematically. This type of data collection is resource-intensive and requires an ability to monitor past the initial funding period. Further, wide variations in project-level outcomes may lead to difficulty in estimating program-level outcomes. Since the implementation of the ecoEII program, OERD has been undertaking steps to improve reporting in these areas. Improvements include a more robust performance measurement and reporting system to link projects with long-term program outcomes. Greater emphasis is also being put on annual project reporting to match funding levels reported in project financial databases and actual expenditures.

Recommendations

The objective of the Synthesis is to establish an easily accessible base of knowledge and to identify any outstanding gaps in program design and implementation. This knowledge base can inform program management on general trends noted in previous evaluations and identify key topics for future evaluations. Given the scope of the Synthesis and the previous recommendations embedded in existing evaluations, the recommendations are intended to address only those programming issues that have not been previously covered by program evaluations. The following recommendations are therefore meant to emphasize areas that should be considered in future programming. 

1.0 Introduction

The purpose of this document is to present the Evaluation Synthesis of NRCan’s Clean Energy Science and Technology (S&T) Sub-Program. The evaluation was conducted between August 2013 and June 2014Footnote 12. The evaluation’s focus is the S&T funding mechanisms and research, development, and demonstration (RD&D) areas forming the Sub-program. This evaluation synthesis is more than a summary of Clean Energy S&T previous evaluationsFootnote 13. Beyond providing an analysis of the findings of six Clean Energy S&T evaluations since 2003, additional lines of evidence were generated to assess the overall impact of recommendations and the implementation of action plans. A triangulation of lines of evidence provided reliable findings to show the Clean Energy S&T Sub-Program’s progress on outcomes by telling a long-term performance story and help a better scoping of the future evaluations.

The rest of this document is organized as follows. Section 2 provides the background information in the form of a profile of the Clean Energy S&T Sub-program. Section 3 presents the purpose and scope of the evaluation, and explains the methodological approach used to address the evaluation issues and questions. Section 4 presents the evidence as it relates to the evaluation findings by issue (relevance; economy and efficiency; and effectiveness). Section 5 presents conclusions and lessons learned.

2.0 Profile

The objective of the Clean Energy S&T Sub-program is “for academia, industry, and the public sector to lay the foundation for the next generation of clean energy products and practices that will have fewer negative impacts on Canada’s air, land and water, by funding, creating and advancing new energy knowledge and technologies.”Footnote 14 The Sub-program supports the following six RD&D areas across the innovation chain, from early conception to pre-commercialization demonstration: Oil and Gas, Clean Electrical Power Generation (CEPG), Sustainable Bioenergy, Clean Energy Systems for Industry (CESI), Built Environment, and Clean Transportation Systems (CTS).

As shown in Table 1, source funding for the six RD&D areas consists of one major ongoing funding mechanism and five different short-term funding mechanisms.

Table 1: Funding mechanisms
Funding mechanism Description
Program of Energy Research and Development (PERD) A long-standing, ongoing interdepartmental funding program that focuses on energy research and development (R&D).  
Technology and Innovation (T&I) Initiative A federal program to help achieve GHG reduction in the longer term by means of advanced technologies and enhanced innovative capacity through R&D, demonstration, and early adoption initiatives. This initiative comprised two components: the Technology and Innovation (T&I) R&D Initiative and Technology Early Action Measures (TEAM).
ecoENERGY Technology Initiative (ecoETI) Aimed to fund research, development, and demonstration of next generation clean energy technologies to increase the clean energy supply, reduce energy waste, and reduce pollution from conventional energy sources
Clean Energy Fund (CEF) Invests in R&D and demonstration projects, including large-scale carbon capture and storage, and smaller-scale demonstration projects for renewable and alternative energy technologies. 
ecoENERGY Innovation Initiative (ecoEII) Supports energy technology innovation to produce and use energy in a more clean and efficient way through a comprehensive suite of RD&D projects.

Table 2 provides the duration of each funding program.

Table 2: Overview of Clean Energy S&T funding programs
Funding programs Funding period
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Program of Energy Research and Development (PERD) R&D
ecoENERGY Innovation Initiative (ecoEII)                           RD&D
Clean Energy Fund (CEF)                       RD&D    
ecoENERGY Technology Initiative (ecoETI)                   RD&D      
Technology and Innovation (T&I) Initiative           T&I R&D Initiative** (R&D)                

TEAM
(demonstrations)

                

**T&I R&D Initiative – Technology and Innovation Research and Development Initiative

The RD&D funded through these programs is conducted by Government of Canada (GoC) scientists at federal laboratories or externally by academia and/or industry (via contribution agreements). Between 2003–04 and 2012–13, a total of 1682 RD&D projects were conducted through the Clean Energy S&T Sub-program.

Table 3 provides, for each funding program, the total number of RD&D projects funded. 

Table 3: Number of RD&D projects funded program
  PERD T&I Initiative ecoETI CEF ecoEIIFootnote 15 Total
Number of projects funded 789 422 111 77 283 1682

Source: information provided by OERD

Table 4 provides, for each funding program, the total cost of RD&D projects (by source, excluding PERD).

Table 4: RD&D funding by program (excluding PERD)
Funding source T&I Initiative ecoETI CEF ecoEII Total
$ million
NRCan $239 $175 $290 $188 $892
Other federal departments $121 $2 - $8 $131
Other partners $1,148 $218 $1,867 $232 $3,465
Total project costs $1,509 $396 $2,157 $429 $4,491
NRCan % of total project costs 16% 44% 13% 44% 20%
NRCan and other federal partners % of total project costs 24% 45% 13% 46% 23%

Source: information provided by OERD

Information provided by OERD indicated that the total cost of RD&D projects funded under PERD between 2003-04 and 2012-13 was $541M. Information on the contribution of PERD partners was not available at the time of analysis. PERD’s data was therefore not included in Table 4; however OERD is developing a database to report this information in the future.

3.0 Purpose, Scope and Methodology

3.1 Purpose and Scope

Covering the period of 2003–04 to 2012–13 , the evaluation synthesis assessed the relevance and performance (effectiveness, efficiency, and economy) of NRCan’s Clean Energy S&T Sub-program. It examined the overall effectiveness of the Clean Energy S&T Sub-program and specific program impacts, successes and challenges, and their contributions towards the intermediate and long-term outcomes (see Appendix A),Footnote 16 including the extent to which the results have informed policy and decision makers.

3.2 Evaluation Questions

The questions that were addressed in the evaluation are presented below.

  1. Relevance
    1. Is there an ongoing need for the Clean Energy S&T Sub-program?
    2. Is the Clean Energy S&T Sub-program consistent with government priorities and NRCan strategic outcomes?
    3. Is there a legitimate, appropriate, and necessary role for the federal government in clean energy S&T? Is NRCan’s role appropriate in the context of the role of others?
  2. Performance
    1. Efficiency and economy
      1. What are the internal and external factors that have facilitated or hindered the achievement of the intended outcomes of the Clean Energy S&T Sub-program?
      2. Are the activities within each clean energy S&T funding mechanism the most economic and efficient means of making progress towards the Clean Energy S&T Sub-program’s intended outcomes?
    2. Effectiveness
      1. To what extent has the Clean Energy S&T Sub-program achieved its intended outcomes?
      2. Have there been any unintended outcomes (positive or negative) from the Clean Energy S&T Sub-program?

3.3 Methodology

The methodological approach is described below.

Document Review. The documents for review included the previous evaluations of the six area of research of the Clean Energy S&T Sub-program. Each area of research has been evaluated at least once, with Built Environment and Clean Transportation Systems evaluated twice. Figure 3 indicates the period and expenditures covered by the evaluations, The Evaluation of the Clean Energy Fund included approximately $250M of expenditures in Clean Electrical Power Generation. Key components in the clean electrical area include both the large-scale CCS demonstrations and smaller-scale demonstrations of renewable technologies. Table 5 shows the Synthesis Evaluation Coverage and Estimated Expenditures

Table 5. Evaluation  Synthesis Coverage and Estimated Expenditures, 2003-04 to 2011-13 ($ 991.4 million
Clean Energy S&T Programs 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Oil &Gas ($166.1) $111.6 $54.5
Clean Electrical ($419.5) $116.7 $302.8
Bioenergy ($77.0) $ 10.8 $ 44.4 $21.8
Industry ($66.5) $ 28.2 $ 30.9 $7.4
Built Environment ($97.5) $49.5 $38.7 $ 9.3
Transportation ($164.8) $83.8 $71.6 $ 9.4
Clean Energy Fund   $ 281.5
  Period of previous evaluations   No previous evaluation coverage

The ecoEII program, though in early program implementation during the data collection phase, was also integrated within the scope of the Synthesis. Although implementation was relatively recent, ecoEII was building on a platform of previous programs such as CEF and the on-going PERD program, allowing the evaluation team to broadly infer expected outcomes (e.g., economic and environmental impacts) based on previous program models. Further, the Synthesis incorporated how ecoEII program design and delivery was influenced by actions taken to address previous evaluation recommendations. A more detailed assessment of the program’s direct program outcomes will be addressed in the subsequent program evaluation. 

  • File Review. A review of the following PERD files was undertaken: Project Annual Status Reports (PASRs) for projects funded between 2007–08 and 2012–13, and a sample of Program at the Objective Level (POL) Annual Reports for projects funded prior to 2007–08.
  • Literature Review. The literature review examined legitimacy, appropriateness, and necessity of the Clean Energy S&T Sub-program by discussing the economic theory that provides justification for government intervention in clean energy R&D.
  • Interviews. Interviews with key stakeholders were conducted to obtain informed opinions and observations on the evaluation questions. Nineteen interviews were completed with representatives the following groups: NRCan senior management (current and former), representatives of OERD, representatives of other NRCan divisions, and representatives of other federal departments.
  • Bibliometrics. Based on a search of the Web of Science (WOS) database, the bibliometric analysis assessed the relative scientific impact of publications supported by the Clean Energy S&T Sub-program for the six RD&D area funded, compared with: 1) all papers published over the same period of time within the same areas of research; and 2) research supported by comparator programs in other jurisdictions.
  • Case Studies. Twelve case studies of funded projects (refer to Appendix A for additional information) were conducted to assess the extent to which they have contributed toward the achievement of the Clean Energy S&T Sub-program’s longer-term outcomes. Projects for case study were selected from the pool of more than 130 case studies conducted by the previous evaluations. Each case study was based on the following lines of evidence: 1) a review of documents, including project files and the case study reports prepared as part of the previous evaluations; and 2) interviews with project representatives.
  • Delphi panelsFootnote 17 of scientific experts. Two Delphi panels, one related to the International Energy Agency Greenhouse Gas (IEA GHG) Weyburn-Midale Project and one related to the Lightweight Thermal Management Systems for Turbocharger Technologies, were undertaken to further explore the impact of the clean energy S&T projects conducted and funded through NRCan. Three to four industry/government/ academic experts were identified to participate in each panel. Each group of experts received the results of the bibliometric analysis and case study pertaining to their RD&D area. They were then asked to respond to a series of questions related to NRCan’s contribution to clean energy RD&D.

3.3.1 Limitations and mitigation

Table 6. Limitations and mitigating strategy
Method/Issue Limitation Mitigation
PERD file review Prior to 2007-08, PERD was managed at a program level (Program at Objective Level - POL) which caused difficulties in obtaining a complete10-year history of financial information for PERD, including the amount of funding provided by NRCan and partners by RD&D area.

The evaluation attempted to use a review of PERD project files to gather the information required to calculate operational efficiency ratios for the program.

Due to inconsistencies in the format of PERD files across the ten years examined in the Synthesis, the evaluation did not calculate operational efficiency ratios for PERD.
Delphi panels The Delphi panel on the Lightweight Thermal Management Systems for Turbocharger Technologies did not yield any responses from participants. The evaluation relied on the results of the case study to discuss the impact of the Lightweight Thermal Management Systems for Turbocharger Technologies project.
Assessment of the impact of science and technological development The OERD funds projects ranging from early scientific research (Related Science Activities) to work that has more tangible (and easier to measure) technological impact. There could be a bias towards reporting on the impact of technological development projects simply due to the relative ease with which they can be reported. Without a discreet method to clearly differentiate the impact of early scientific research and related science activities, the Synthesis does not attempt to compare and contrast the relative strengths of the different types of research projects.

4.0 Findings

This section provides the findings of the evaluation, organized by the following issues: relevance; effectiveness; and economy and efficiency.

Evaluation question: Is there an ongoing need for the Clean Energy S&T Sub-program?

4.1 Relevance – Ongoing Need

Documentary evidence and interviewees indicate that there is a need for the type of activities conducted by the Clean Energy S&T Sub-program, including their contributing to Canada’s commitments to reduce greenhouse gas (GHG) emissions and supporting the economic sustainability of Canada’s energy sector.

  • The Clean Energy S&T Sub-program responds to the need to reduce GHG and other air emissions by funding RD&D activities intended to increase the efficiency of energy production and use and to facilitate the use of alternative, renewable energy sources.
    • In Canada, energy use is the principal source of GHG and criteria air contaminants (CAC) emissions. Forecasted increases in global energy demand have increased pressure to find ways to reduce GHG and CAC emissions, develop new renewable sources of energy, and find more efficient ways of using fossil fuel energy; thus, investments in clean energy S&T is a pathway to contribute to the achievement of these goals.
    • Under the United Nations Framework Convention on Climate Change (UNFCCC) process, the federal government is committed to reducing GHG emissions. Canada reaffirmed this commitment by agreeing, as part of the Copenhagen Agreement, to reduce carbon emissions by 17% from 2005 levels over the next 10 years.
  • The previous evaluations reported that investments in clean energy S&T support continued industry growth and thus stimulate short- and long-term employment, increase economic output, and generate government revenue, especially through leveraging. Further, the previous evaluations and other documentary evidence indicated that although the energy sector is a significant contributor to the Canadian economy, its potential for growth and/or innovation could be affected by a range of different factors and/or challenges.
    • Increasing production costs in Canada, emerging economies such as China, and the rapid pace of development in Europe, may be the opportunity for Canada to support a home-grown industry developing solutions that work in situations that reflect the Canadian context.
    • By 2020, Canada’s crude oil production levels are expected to reach five million barrels per day, making Canada the world’s third or fourth largest oil producer. However, many generally accepted technologies and methods within the global industry cannot be used in northern and offshore environments; consequently, the industry faces several challenges relating to infrastructure, transportation, construction, and drilling.
    • Challenges confronting development of the potential bioeconomy include lack of financial capital for developing and producing bioproducts; the economies of scale factors for Canada’s predominantly small companies to operate competitively; and the need for research, development and demonstration to reach a commercial development stage.
    • In the transportation sector, vehicle manufacturers are reluctant to produce vehicles operating on new fuels when there is no fuel delivery infrastructure, consumers are reluctant to purchase these vehicles for the same reason, and energy firms are unwilling to develop new fuel infrastructure due to insufficient demand.
    • While Canada can chose among a wide range of tools to stimulate business R&D, there is still a need to reconsider the balance between direct support (through grants, co-investments or procurement) and indirect support (through tax credits). Research by the OECD has shown that Canada is unusual among the major industrialized countries in its heavy reliance on indirect as opposed to direct support. The federal Science, Technology and Innovation Council estimates that 90% of Canada’s government support of business R&D is in the form of indirect measures; at the other end of the scale, 80 per cent of government support in the United States is direct.Footnote 18

Evaluation question: Is the Clean Energy S&T Sub-program consistent with government priorities and NRCan strategic outcomes?

4.2 Relevance – Linkages to Government and NRCan’s Priorities

Documentary evidence and interviewees indicate that the Clean Energy S&T Sub-program is aligned with federal government priorities, including recent commitments to address climate change and other environmental concerns, and to ensure Canada’s economic sustainability.

  • Senior managers indicated that responsible resource development and technological innovation, through the use of clean and sustainable energy, remains a strong focus for the federal government. Moreover, they reported that, by helping academia, industry, and the public sector pursue development of clean energy technologies that have fewer negative environmental impacts, the Clean Energy S&T Sub-program is well-aligned with NRCan’s strategic outcome that natural resource sectors and consumers are environmentally responsible.
  • The 2013 Speech From the Throne (SFT) highlighted the federal government’s commitment to responsible resource development and indicated that the Government of Canada will “build on its record as the first government to achieve an absolute reduction in greenhouse gas emissions by working with provinces to reduce emissions from the oil and gas sectors while ensuring Canadian companies remain competitive.”Footnote 19
  • The 2014 Federal Budget did not specifically earmark funding for clean energy RD&D; however, it noted that Canada is “a major player in the world energy economy,” outlined various strategies for responsible resource development, and spoke to expanding tax incentives for clean energy generation.Footnote 20
  • In 2015, the federal government announced a commitment to reduce GHG emissions by 30% below 2005 levels by 2030.
  • Previous evaluations found that funding for the Sub-program has been announced through various budgets during the evaluation period, including the announcements for the Clean Energy Fund in 2009, and the ecoENERGY Innovation Initiative in 2011. For example, the findings from the evaluation of the CEF program indicated linkages between the Government of Canada and NRCan priorities as its objectives were to guide funded projects towards GHG reductions and economic growth in the areas of smart grid, renewable and clean energy (former Integration of Renewable Energy Systems priority), bioenergy and carbon capture and storage.

Evaluation question: Is there a legitimate and appropriate role for the federal government in clean energy S&T? Is NRCan’s role appropriate in the context of the role of others?

4.3 Relevance – Roles and Responsibilities

There is an appropriate role for the federal government and NRCan in clean energy S&T. Federal involvement in clean energy RD&D is authorized by several Acts and aligns with NRCan’s mission and mandate. Additionally, there is an acknowledged role for the federal government to respond to market failures, and provide leadership, in the area of clean energy S&T. Finally, Canada’s involvement in clean energy S&T is consistent with approaches used in other countries.

  • Interviewees indicated that NRCan serves as the lead federal department for clean energy S&T. The Natural Resources Act gives the Minister various responsibilities related to the sustainable development of natural resources, including development and promotion of scientific technologies, and the Energy Efficiency Act provides NRCan with authority to conduct research that promotes efficient use of energy and the use of alternative energy sources. Footnote 21
  • The economic concept of “market failure,”Footnote 22 namely externalitiesFootnote 23 and public goods,Footnote 24 provides evidence of a legitimate and appropriate role for the federal government in Clean Energy S&T.
    • Examples of positive externalities include: 1) early adopters of technologies who pave the way for others and often lower costs for later adopters; and 2) network externalities, which occur when the benefits of consuming a product increases with the number of other users consuming or producing the product.Footnote 25 An example of a negative externality is pollution (i.e., GHG emissions).
    • The public good nature of clean energy research and commercialization implies that without government intervention, the private market will provide less research and commercialization than what is socially optimal. The US Council of Economic Advisors estimates that private returns to RD&D are 20-30%, while the social returns at 50% or higher.Footnote 26 The gap between private and social returns for RD&D is particularly high in earlier stages of the innovation chain, as fundamental research has significantly greater external benefits than later-stage commercialization research.Footnote 27
  • Several factors point to the need for federal leadership in the area of clean energy S&T. The previous evaluations and interviewees noted the following:
    • If Canada does not take a leadership role, it may simply become a supplier of energy inputs to other countries and will not accrue benefits across the value chain.
    • Provinces play a predominant role in natural resources and energy (with the exception of nuclear energy), which needs effective national coordination of activities. The federal government plays an important role in supporting provincial regulatory decisions and harmonizing regulations, codes, and standards.
    • Federal funding may be required to encourage industry to develop technologies and engage in high-risk, early stage R&D.
    • Often, the facilities needed for energy research and testing are not cost effective for industry to construct and operate, however they may be cost effective as government facilities.
    • The economic savings resulting from energy efficiency measures may not exceed the cost of implementing the technology.
  • Canada’s approach to reducing energy-related GHG emissions is consistent with the activities undertaken in other major countries and jurisdictions (e.g., the European Union, China, Australia, and the United States).
    • The EU Strategic Energy Technology Plan (SET-Plan) provides a roadmap to reduce GHGs by 80% to 95% by 2050. The SET-Plan focuses on research, technological development, and innovation and diffusion of new technologies to promote clean energy.Footnote 28
    • China’s S&T National Plan, which directs R&D and innovation efforts to 2020, places high priority on developing technologies related to energy, water resources, and environmental protection (Tan, 2010). Two main programs provide the most direct funding for clean technologies: the 863 Program focuses on hydrogen and fuel cells, energy efficiency, clean coals, and renewable energy; and the 973 Program focuses on energy, natural resource conservation, and environmental protection projects.Footnote 29
    • The Australian government invested in R&D and demonstration for renewable energy, including “Low Emissions Technology Fund, Solar City trials, Renewable Energy Development Initiative, Advanced Electricity Storage Technologies, and Wind Forecasting Capability.”Footnote 30 It also created the Renewable Energy Commercialization Program (RECP) to “promote renewable technologies” and the Renewable Energy Equity Fund, which provides venture capital for small innovative companies.Footnote 31
    • The US is a major player in RD&D. Spending levels in 2009, in part reflecting investment to offset the 2008 global economic crisis, reached as high as $10B. The US announced in 2013, as part of the President’s Climate Change Plan, a commitment to lead the world in clean energy RD&D. The US has also tabled a policy through the  American Clean Energy and Security Act to provide funding to support RD&D in clean energy and energy efficient technologiesFootnote 32 and under the 2011 America Invests Act to strengthen IP protection system and to speed the patent application processing timesFootnote 33.

4.4 Performance – Effectiveness

Evaluation question: To what extent has the Clean Energy S&T Sub-program achieved its intended outcomes?

4.4.1 Continued Collaboration and Partnership for Clean Energy and Energy Efficiency R&D and Demonstration

Collaboration and partnership play a critical role in all research areas of the Clean Energy S&T Sub-program, helping technologies move from basic research and knowledge creation to demonstration and deployment. The level of leveraging of funds and partner contributions both financial and in-kind are key indicators of collaboration for the Clean Energy S&T Program. As reported in section 4.3, there is clear evidence of the stakeholders’ participation in RD&Ds, without which, this sub-program would be limited in its achievement of its expected outcomes. In addition, partnerships helped to set international standards and policies, provide Canada’s perspective to other countries, increase Canada’s credibility in research areas, and facilitate international trade and marketing

  • The previous evaluations note the following specific benefits resulting from collaboration with over 1000 external partners: improved dissemination of research, sharing of expertise, less duplication of effort, identification of R&D priorities, increased funding and in-kind resources, reduced financial risk, access to new networks and contacts, increased human resource capacity, increased credibility with funding decisions, opportunities for future collaboration, and increased relevance of research to the end user. Furthermore, international partnerships can help set international standards and policies, provide Canada’s perspective to other countries, increase Canada’s credibility in research areas, and facilitate international trade and marketing.
  • Almost all of the previous evaluations describe the research areas forming the Clean Energy S&T Sub-program as contributing to strengthened networking and collaboration among stakeholders such as federal departments, provinces and territories, universities, research organizations, producer groups, and private industry.
    • All of the research areas forming the Sub-program have resulted in presentations at national and international conferences, and many projects have attracted significant interest from national and international groups.
    • Collaboration was highlighted as a key factor that facilitated progress in federal RD&D in the CEF evaluation. For example, the majority of the 32 small-scale projects reviewed included the participation of two or more departments (20 of 32 projects). Inter-departmental cooperation gave project teams broader access to the facilities and equipment housed in federal laboratories. Further, external stakeholders often contributed financially and in-kind to the projects, and their involvement helped project teams vet early project findings, identify which technical solutions would be most readily adapted by the industry, and provided a pathway to share results
    • Partnerships and collaborations with other relevant federal departments and agencies in the bioenergy sector are included in the planning and decision-making process of the Priority through governance committees and the Canadian Biomass Information Network (CBIN). Furthermore, the Priority has facilitated international partnerships by maintaining positions in international editorial boards and hosting guest scientists.
    • For CESI, partnerships are frequently made with the same organizations as previous years, thus resulting in slow partnership growth. Further, industry perceived collaboration with government as “being associated with more paperwork to complete, federal jargon to decipher, and/or a longer or more rigorous approval process to purchase equipment, modify research scope, etc.” (NRCan, Evaluation of the Clean Energy Systems for Industry (CESI) Sub-Activity, 2012).
    • In the Built Environment area, the Buildings and Communities Energy Technology (BCET) Program and TEAM projects focused on co-funded initiatives involving multiple partners, including multiple government, industry, and academic contributors.
    • AFTER Program Plans describe how plans were modified to reflect stakeholder needs. AFTER also engaged international stakeholders, as the program has close working relationships with the US Environmental Protection Agency (US EPA) and Department of Energy (US DOE), along with members from many countries participating in the International Energy Agency (IEA) Advanced Motor Fuels (AMF) Implementing Agreement.
  • As shown in the appendices of this report, the case studies conducted as part of this evaluation validate the importance of collaboration across a range of S&T projects and illustrate the importance of collaborations to RD&D on clean energy technologies. In these cases, the evidence points to reduced redundancy and confusion between partners, better results and examples of public private partnerships that held benefits for both parties. The examples below briefly illustrate several case study findings:
    • Research into, and the development of, ice detection radar was made possible through a 10-year partnership between NRCan, Transport Canada, the Canada Coast Guard (CCG), and Rutter Technologies resulting in improved radar technology that could be applied quickly and safely to address emerging ice issues in the Arctic.
    • The Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock (modules 1, 4, and 5) project contributed to “strengthen[ing] networking and/or collaboration among federal departments and agencies, the provinces, industries, universities, and/or international activities.”Footnote 34 and may have application within the commercial sector.
    • The Combined Water and Energy Optimization project improved the efficiency with which extensive testing was conducted at partnering pulp mills such as Tembec, Paprican, and Domtar by validating the testing technology in a real-world setting with industry partners.
    • Key collaborators in the Deep Lake Water Cooling project included NRCan, the City of Toronto, Enwave, and the Toronto Environmental Alliance. The success of the project, which draws cold water from Lake Ontario to provide cooling to a high-density system in Toronto’s downtown core, relied on early federal RD&D investment in environmentally efficient cooling technology and was demonstrated and applied by industry and other external partners.
    • The High Pressure Compressed Hydrogen Fuelling System project was led by IMW Industries Ltd., with funding support and expertise from NRCan’s TEAM program. IMW Industries Ltd. collaborated with Stuart Energy, a supplier that provides compressor motors, as part of a development arrangement.
    • Environment Canada and China established an agreement to collaborate on applying the Wind Energy Simulation Toolkit (WEST) system to prepare a wind atlas for China. Additionally, Mexico expressed interest in establishing a similar agreement.Footnote 35
    • Various provinces and territories have used AnemoScope and the Canadian Wind Energy Atlas (CWEA) to develop a consistent approach to higher-resolution wind maps that can cover multiple jurisdictions.

4.4.2 Increased Stakeholder’s Awareness and Understanding of Clean Energy and Energy Efficient Technologies

Through the analysis of NRCan publications, the evaluation synthesis found that the Clean Energy S&T Sub-program is an important contributor to clean energy and efficiency technology awareness in Canada. Also, the previous evaluations indicated that several of the research areas were engaged in dissemination activities to increase awareness and understanding of clean energy and energy-efficient technologies.

  • Bibliometric analysis found that, between 2003 and 2013, the total number of publications in Canada related to the six RD&D areas was 22,360. Of these, 6% were related to internal research conducted at NRCan. Based on publications related to internal research and compared to all research organizations in Canada, NRCan produced between the largest and 12th largest volume of publications for each RD&D area.
Table 7: NRCan’s publication rank in Canada (based on internal research)
RD&D area Rank Selected organizations
ranked above NRCan		 Selected organizations
ranked after NRCan
Oil & Gas 2nd 1st: University of Alberta 3rd to 6th: Universities (Calgary, British Columbia, Toronto, Waterloo) 7th: National Research Council (NRC)
CEPG 12th

1st: University of Western Ontario

2nd: University of Waterloo

3rd: University of Toronto (UofT)

 14th: NRC
Sustainable Bioenergy 6th

1st: University of British Columbia (UBC)

2nd: AAFC

3rd to 5th: Universities (Quebec, Alberta, Toronto)

7th: Fisheries and Oceans

25th: NRC
CESI 12th

1st: UBC

2nd: UofT

3rd: University of Waterloo

11th: Environment Canada

13th: NRC

19th: AAFC

22nd: National Water Research Institute
Built Environment 1st –

2nd: Concordia University

3rd: NRC
CTS 1st –

2nd: University of British Columbia

3rd: NRC

Between 2008 and 2013, the total number of publications in Canada related to the six RD&D areas was 15,024. Of these, 9% were based on internal research conducted by NRCan or external research funded by the department. Within each RD&D area, NRCan internal and external research contributed to between 7% and 23% of the Canadian publications.

Text version

Graph
Within each Research, development, and demonstration area, Natural Resources Canada internal and external research contributed to between 7% and 23% of the Canadian publications.

This graph describes the Natural Resources Canada proportion of Canadian publications by Research, development, and demonstration area between 2008 and 2013. On a scale of 0 to 23%, Sustainable bioenergy and Clean Energy Systems for Industry publications are at 7% each; Clean Electrical Power Generation is at 8%, followed by Clean Transportation Systems at 10%. Along the same lines, Oil and Gas publications represent 18% and Built Environment are at 23%.

 
  • Four of the previous evaluations (CEPG, CESI, Build Environment, and CTS) included substantive discussion of dissemination activities using the following tools: stakeholder networks, guides, analyses, advice, best practices manuals, and analytical techniques. For example, the CTS evaluation noted that citations of publications based on the results of the Advanced Fuels and Technologies for Emissions Reduction (AFTER) Program were 26% higher than the world average for papers in the field. In contrast, the CTS evaluation found that, due to intellectual property issues, dissemination of the Advanced Structural Materials for Natural Gas Vehicles (ASM-NGV) results was limited, in some cases, to direct use by project participants.
  • The 32 R&D projects under the CEF program contributed to 64 peer reviewed publications, 25 client reports and 120 presentations. Based on the review of project final reports, results from 63% of the projects are being used by external stakeholders to conduct RD&D
  • In response to recommendations made in the CEF evaluation, the OERD indicated that it has been taking steps to improve and develop mechanisms to foster better collaboration between researchers, exchange of information on best practices, and dissemination of project results. Specifically, the OERD developed an internet tool to promote collaboration between funding applicants under the ecoENERGY Innovation Initiative (ecoEII) program. In addition, ecoEII requires proponents to prepare and implement a dissemination plan for each project and requires that they report on these activities annually.

4.4.3 Clean energy and energy efficient knowledge, technology, systems and approaches are tested and proved

The evaluation found evidence from both previous evaluations and supplemental data collection indicating that RD&D has contributed to the development of information tools for industry and other stakeholders, and provided a platform to advance the technology readiness levels (TRL) of clean energy technologies.

Scientific Knowledge

  • As shown in Table 8, examples of the Clean Energy S&T’s contribution to scientific knowledge was documented in all seven evaluations.
Table 8: Evidence of contribution to scientific knowledge
RD&D area Contribution to scientific knowledge
Clean Energy Fund

The evaluation of the Clean Energy Fund (CEF) noted that the 56 CEF projects demonstrated a strong contribution to the Clean Energy S&T knowledge stream. For example: 

Carbon Capture and storage: NRCan’s Bells Corners Complex has the only integrated testing facility in Canada required to complete bench- and pilot-scale testing of high-pressure energy conversion systems (a part of the Carbon Capture and Storage research effort).

Atlantic Energy Gateway: AEG interviewees commented that CEF funding allowed the organization to search outside provincial boundaries for technologies that supported GHG emission reduction targets, and created an environment for clean energy technologies to be developed and advanced.  

Oil Sands: CEF funding led to the development of a new method that can distinguish between natural background and oil sands production-related sources of naphthenic acid.  Improved understanding of the impact of oil sands operations on the environment will inform future codes, standards and regulations.

Hydrogen and Fuel Cell: A CEF-funded project developed and demonstrated a new melt extrusion process described as a significant breakthrough in lowering the manufacturing cost and accelerating the commercialization of fuel cell technologies.
Oil and gas The previous evaluations reported that the National Centre for Upgrading Technology (NCUT) project has helped develop new analytical methods and scientific knowledge. Furthermore, the Frontier, Oil and Gas (FOG) and Bitumen, Oil and Gas (BOG) Portfolios “led or are considered likely to lead to impacts in knowledge advancement” (NRCan Evaluation of the Oil and Gas Sub-sub Activity, 2011).
Bioenergy The Sustainable Bioenergy evaluation indicated that “project activity is highly focused in the areas of increased knowledge and understanding of new and existing biomass resource potential, biofuels, and bioenergy, and new and improved applications for biomass conversion technologies” (NRCan, Evaluation of the Sustainable Bioenergy Strategic Priority, 2012).
CEPG The CEPG evaluation noted that field trials and demonstrations of new technologies have “provided important learning on the challenges of installing … systems and data on the viability, operation, efficiency, cost-effectiveness and reduction in GHG and other environmental benefits of the systems” (NRCan, Evaluation of NRCan’s Clean Electrical Power Generation (CEPG) S&T Sub-sub Activity, 2011). Examples include a very low head turbine; a Combined Heat and Emergency Power System; solar photovoltaic and thermal heating and electrical systems; and a Hybrid Fuel Cell Plant to recover and store waste energy from a natural gas pipeline pressure let down station.
CESI The CESI evaluation stated that projects have increased the fundamental knowledge base of energy efficiency and emissions reduction to a good extent. This work included “the development of numerous concepts, techniques, sensors and software” and focused on understanding energy use and identifying industrial processes with the most impact on energy consumption and emissions (NRCan, Evaluation of the Clean Energy Systems for Industry (CESI) Sub-Activity,  2012).
Built Environment The previous evaluations indicated that RD&D projects have yielded numerous prototypes and marketable concepts based on scientific knowledge, including technologies that have advanced to a demonstration stage and could be deployed commercially. Examples include integrated lighting and climate personal control systems for office or cubicle setting; a camera-based system to determine optimal natural and artificial lighting settings in office buildings; adapted instruments to measure heat and moisture performance of building envelopes; and energy generating panelized wall systems.
Transportation The previous evaluations noted that RD&D increased knowledge and understanding of the effects on the environment from pollutants; advanced the state of knowledge in hydrogen production, storage, and utilization; and developed engine and after-treatment technologies. Additionally, the Advanced Structural Materials for Natural Gas Vehicles (ASM-NGV) R&D projects supported the development of materials knowledge and R&D capacity in public and private sector organizations and the Particulate Matter (PM) project developed prototypes related to particulate matter filters and sensors.

New Information Tools

  • As shown in Table 9, case studies revealed that the funded RD&D projects resulted in the development of new information tools.
Table 9: Evidence of development of information tools
RD&D area Project Information tools developed
CEPG Wind Energy Atlas and Wind Energy Simulation Toolkit
  • The Canadian Wind Energy Atlas (CWEA)
  • AnemoScope/Wind Energy simulation Toolkit (WEST) wind-energy mapping system
  • Wind energy forecasting tools
International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project
  • Best Practices Manual for validating CO2 Geological Storage
  • Special supplement to the International Journal of GHG Control
CESI Combined Water and Energy Optimization
  • Methodology/algorithm to study water and energy interaction
  • Prototype software tool to assist with data gathering and extraction associated with process integration studies and to perform combined water and energy optimization

Movement along the Innovation Chain

Representatives of OERD said NRCan is starting to use Technology Readiness Level (TRL)Footnote 37 ratings, which are based on TRLs adapted from the National Aeronautics and Space Administration (NASA), to estimate the extent to which RD&D projects have facilitated movement along the innovation chain.

  • The case studies conducted as part of the evaluation assessed the extent to which Clean Energy S&T funding helped move technologies along the following innovation chain:
  • The case studies found that three RD&D projects contributed to the movement of the technologies being developed from a TRL of 2 (concept formulated) to a TRL of 8 (system developed and tested/demonstrated in operational environment) or 9 (system proven).Footnote 38 See Appendix B for more detail.
    • In the area of oil and gas, a project related to radar processing for ice hazard detection developed several algorithms to improve the accurate detection and tracking of small ice objects.
    • For the built environment, a project related to renewable cooling resulted in the development of a deep lake-source cooling system to provide air conditioning for office towers.
    • Another project in the area of built environment demonstrated the use of refrigeration system heat recovery to heat building space and water in supermarkets. It also demonstrated the use of integrated CO2 secondary loop refrigeration systems instead of refrigerants to cool refrigerators and freezers.
  • Other projects contributed to movement of technology along earlier points of the innovation chain.
    • In the area of sustainable bioenergy, a project related to bio-based high-value production from secondary biomass feedstock examined the use of metabolic engineering to produce biobutanol from methanol or methane and the use of polymeric membranes for gas purification and separation. For each project, the RD&D moved the TRL from 2 (concept formulated) to 3 (proof of concept).
    • For CESI, a project related to advanced blasting from comminution process optimization involved RD&D on rock hardness sensors for use in electronic blasting operations. This project moved the TRL from 1 (basic principles observed/reported) to 3 (proof of concept).

4.4.4 Increased Canadian Capacity for the Development and Implementation of Regulation, Codes and Standards for Clean Energy and Energy Efficient Technologies

The findings of the previous evaluations and the case studies conducted as part of this evaluation synthesis demonstrate that RD&D conducted through the Clean Energy S&T Sub-program has informed the development and/or revisions of codes, standards, and regulations.

  • Energy RD&D funded by IETS programs has made significant contributions to the development and implementation of 50 codes and standards, including for national building codes, microgrid interconnection, EnerGuide ratings systems, soil quality standards, and marine energy standards.
  • Representatives of OERD noted that the absence of codes and standards can be a significant barrier to the adoption of technology. In some cases, implementation of regulations, codes, and standards for new clean energy technologies is essential for moving technology along the innovation chain to demonstrations and commercialization. This is illustrated by the CTS Hydrogen and Fuel Cells (H2FC) project, whose Airports Demonstration had limited success in meeting project targets, partially because “the codes, standards and safety measures needed to support new technology deployment (especially in a sensitive, risk-averse commercial environment) were not in place” (NRCan, Evaluation of Clean Transportation Systems (CTS) Portfolio, 2013). Additionally, standards remove the barrier of one firm bearing the costs of adopting new technologies; it becomes something everyone has to do, and everyone bears the cost.
  • Almost all of the previous evaluations reported that the RD&D and governance activities contributed to the development of codes, standards, and regulations.
    • The Canadian Council for Ministers of the Environment (CCME) adapted the Bitumen Oil and Gas (BOG) Portfolio work to develop Canada-wide standards. Furthermore, western provinces and territories use BOG Portfolio outputs to advise their regular reviews and updates to standards and regulations. Finally, the BOG Portfolio also helped identify opportunities and threats in the oil sands and heavy oil market, and this information may be used by policymakers to develop provincial environment and emissions standards (NRCan, Evaluation of the Oil and Gas Sub-sub Activity, 2011).
      • The CEPG “has supported the development of a number of new codes and standards and influenced a variety of provincial and municipal regulations” (NRCan, Evaluation of NRCan’s Clean Electrical Power Generation (CEPG) S&T Sub-sub Activity , 2011). Furthermore, interviewees and case studies indicate that CEPG has helped shape provincial and Environment Canada environmental policies.
      • Project researchers provided consultations for federal bioenergy policy development and members of the Canadian Biomass Information Network (CBIN) worked with industry to develop standards for pyrolysis oil. Additionally, funded research influenced standards for residential wood heating appliances and informed the development of provincial policies that recognize energy crops as agricultural crops.
      • Built Environment RD&D contributed to the National Energy Code for Buildings and informed the development of three standards for the Canadian Standards Association (CSA). The Buildings and Communities Energy Technology (BCET) Program has reportedly influenced the creation or revision of 12 standards and 16 test procedures.
      • The Hydrogen and Fuel Cells (H2FC) projects contributed to the Canadian Hydrogen Installation Code, which, in turn, “was instrumental in developing the basis for a standardized regime for regulatory approval of hydrogen installations and equipment across Canada” (NRCan, Evaluation of Clean Transportation Systems (CTS) Portfolio (draft), 2013).
  • The case studies conducted as part of this evaluation also yielded several examples of how RD&D results have been used in the development of codes, standards, and regulations (refer to Appendix B for additional information).
    • Development of Nationally Appropriate Mitigation Actions (for particulate matter emissions produced from flaring), which informed the United States Environmental Protection Agency (US EPA) emission measurement standards and Global Gas Flaring Reduction Partnership policies
    • Development of the Canadian Standard Association Code Z741-12 on Geological Storage of Carbon Dioxide
    • Provision of emissions data as input to emissions regulations development in Ontario (Ontario Ministry of Environment [MOE] Guidelines A-7 and A-9 and MOE Interim Wood Combustor Guidelines)
    • Provision of information to the BC Greenhouse Growers Association about the potential impact of the Greater Vancouver Regional District Agricultural Boilers Emission Regulation Bylaw No. 1098, 2008
    • Revision of a CSA code to allow the use of CO2 for refrigeration in supermarkets

4.4.5 Increased Adoption of Clean Energy and Energy Efficiency for the Competitiveness of Canadian Energy Producers and Users

Previous evaluations reported that companies supported by RD&D projects had entered technology markets with the potential for positive environmental outcomes. Long-term economic benefits are less clearly linked to these projects as linkages to the foundational RD&D become diluted as the technology is further developed. The OERD currently tracks projects once the funding period has ended in order to better measure long-term economic impacts.

  • Several evaluations cite examples of contributions to economic competitiveness through cost savings and economic benefits:
    • The oil and gas industry realized capital savings of between $50 million and $250 million as a result of the knowledge produced by the Strategic Priority (NRCan, advanced Separation Technologies (AST) Evaluation (OERD POL 1.1.3), 2006). Since the evaluation, OERD’s own case studiesFootnote 39 showed that paraffinic froth separation technology developed by Syncrude and Canmet energy was commercialised. This technology was one of the factors that contributed to the economic viability of the Jackpine Mine.
    • Industry partners indicated that their involvement in the Built Environment Strategic Priority increased their capacity and visibility, which helped promote and market their work. Along similar lines, some industry partners indicated their participation increased demand for their work (NRCan, Advanced Separation Technologies (AST) Evaluation (OERD POL 1.1.3), 2013). For example, evidence from the documentation review indicated that the developers of an eco-friendly ice rink refrigeration technology have since installed and commissioned systems for clients associated with the National Hockey League and the 2010 Vancouver Winter Olympic Games.Footnote 40
    • The Canadian Lightweight Materials Research Initiative (CLiMRI), the Canadian Transportation Fuel Cell Alliance (CTFCA), and Technology and Innovation (T&I)-TEAM projects generated a total of $9.9 million in actual sales from 2005 to 2008 (NRCan, Evaluation of NRCan’s Transportation S&T Sub-sub Activity, 2010).
    • Advanced Separation Technologies (AST) R&D is currently being used by some oil sands firms commercially. These improvements in the oil sands industry’s knowledge base have helped it realize savings in capital costs from $50 to $250 million (NRCan, Advanced Separation Technologies (AST) Evaluation (OERD POL 1.1.3), 2006).
    • For bioenergy, the previous evaluation indicated that many interviewees believe commercialization of biomass is occurring in Canada, as first generation technologies are well-established and many pulp and paper facilities already act as biorefineries (NRCan, Evaluation of the Sustainable Bioenergy Strategic Priority, 2012).
    • Stakeholders used the knowledge generated in the area of Built Environment to implement more energy-efficient building design and construction practices, promote and market their companies, and determine future research directions. According to the previous evaluation, from the period of 2008–09 to 2011–12, the following four products/systems were commercialized: Diagnostic Agent for Building Operation software (DABO); a zoned comfort system; a core sunlighting /solar canopy system; and advanced phase change material.
    • Some evidence of industry adoption for the Advanced Fuels and Technologies for Emissions Reduction (AFTER) Program exists such as three pre-commercial sensor prototypes that monitor engine performance to control emissions that are being tested by car manufacturers. Examples included a particulate matter (PM) sensor for monitoring PM from diesel engines; an Exhaust Cyclic Variability (ECV) combustion stability sensor; and an active particulate filter regeneration system.
    • The CEF evaluation noted that the federal R&D component resulted in two patents (the technologies were not identified). Additionally, for the small-scale demonstration component, nine projects involved discussions with potential adopters of the technology.
  • The case studies conducted as part of this evaluation provided further examples of how the RD&D funded through the Clean Energy S&T Sub-program has contributed to increased industry competitiveness:
    • The Sigma S6 radar processor, which is a key component of the FedNav/Enfotec IceNav Virtual Marine Radar System, is being used in two Canada Coast Guard (CCG) icebreakers. Additionally, many international vessels have adopted Rutter’sFootnote 41 Ice Navigation system, indicating international sales in the period following federal funding for pre-commercial research.
    • Following the release of the Canadian Wind Energy Atlas (CWEA) in 2004 and AnemoScope in 2005, Canada’s installed wind power capacity increased by 50% in 2005 and 100% in 2006  Further, between 2003 and 2009, Canadian wind energy electricity generation capacity increased almost 10-fold, from 322 MW to 3,150 MW, thereby generating enough power for almost 1 million homes. Nonetheless, the growth of the industry cannot be directly attributed to the development of the CWEA and forecasting tools.
    • The Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues project created a potential for new industries, products, and/or value-added opportunities with respect to wood residues, purpose-grown biomass resources (e.g., miscanthus, switchgrass), and agricultural waste feedstocks (e.g., grain chaff).
    • With the Combined Water and Energy Optimization (CWEO) project, the developed software tool was commercialized under the name CADSIM. The tool was successfully transferred to the Tembec Skookumchuck mill. Additionally, FPInnovation has conducted some preliminary tests of the software in its mills. The CWEO software tool could potentially provide enhanced market opportunities to industries other than pulp and paper, such as petroleum refining.
    • The previous evaluations found the extent of adoption varies to some extent across the research areas, with the Built Environment, and Oil and Gas research areas claiming some market success for technologies and the other research areas reporting little market penetration of technologies.

4.4.6 Lowered GHG emissions

There are a wide range of examples of the Clean Energy S&T Sub-Program’s contributions to GHG emissions reductions. Evidence from previous evaluations, case studies and other methodologies highlighted specific, measurable impacts on GHG reduction. At this point, the evidence is largely based on specific projects rather than program-level data as capturing data on GHG reductions depends on the deployment and uptake of specific technologies. Further, there was limited capacity to measure this outcome over the ten-year period under review. However, the OERD is taking steps under new reporting requirements to collect and report environmental benefits on a systematic basis.

  • Previous evaluations frequently noted it was too early in the development cycle to accurately measure the environmental impacts of funded projects.  Nonetheless, previous evaluations, in particular the TEAM program and CEF program, highlighted specific, measurable impacts on GHG reduction:
    • As part of the evaluation of TEAM, the System for Measurement and Reporting of Technology (SMART), was “developed to provide a rigorous, consistent, transparent and cost effective means of planning, evaluating & measuring technical performance and GHG emission reductions for demonstration projects”. At a cost of $1.3 million, SMART assessments were developed for 65 of the 135 demonstration projects funded through TEAM. Analysis of 49 SMART Project Master Plans (PMPs) estimated that these projects would contribute to reducing GHG emission by 525,210 tCO2e/year (OERD, TEAM Program Wrap Up Presentation #3 SMART & GHG Assessment Framework, 2011).
    • The 2009 Built Environment evaluation concluded that the 11 completed TEAM projects will reduce GHGs by more than 12,000 tonnes per year (NRCan, Built Environment Evaluation, 2009).
    • Estimates from the CEF evaluation suggested that the two large-scale CEF projects, Enhance Energy’s Alberta Carbon Trunk Line (ACTL) and Shell’s Quest project, should be able to sequester approximately 2.2 megatons of CO2 per year. The small scale demonstration projects have also resulted in environmental impacts through energy generated by renewables totaling 3.7 million kWh/year, peak demand reduction of 2,330 kW, energy saved totaling 18.2 million kWh/year, displaced volume of diesel of 13,800 L and decreased NO2
  • Estimates suggested substantial GHG reductions from the Canadian Lightweight Materials Research Initiative (CLiMRI), Transportation Technology and Innovation (T&I), the Canadian Transportation Fuel Cell Alliance (CTFCA), and TEAM projects. These estimates represent a combination of forecasting and actual emission reduction, resulting in a final estimate of 20,660 metric tonnes of CO2 emission reduction over a five-year period (NRCan, 2010). The subsequent CTS evaluation further estimated Hydrogen and Fuel Cells (H2FC) emissions reductions at approximately 530 tons/year (NRCan, Evaluation of Clean Transportation Systems (CTS) Portfolio, 2013). As shown in the appendices, the case studies conducted as part of this evaluation also provided some insight into the potential of RD&D to contribute to lowering GHG emissions, with the following examples:
    • The primary motivation for the research for Radar Processing for Ice Hazard Detection was to increase the safety of marine transportation, the radar technologies being developed are intended to improve the navigational capabilities of marine vessels. By improving the navigational capabilities of marine vessels, which may improve fuel efficiency, ice detection radar may indirectly contribute to reduction of GHG emissions.
    • For the Particulate Matter (PM) Emissions from Flares project, providing industry and government regulators with a reliable and accurate measurement tools for the quantification of black carbon emissions will support the development and implementation of informed GHG reduction policies and targets, the enforcement of regulations, and the management of PM emissions.
    • The Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock project has the potential to benefit the environment, as it promotes use of biofuels as a substitute for non-renewable fossil fuels and potentially reduces GHG/CAC emissions by diverting biomass waste toward energy production. To illustrate this potential, project representatives from the previous case study stated that if the Canadian pulp and paper sector treated only 30% of the organic component of total solid waste, the municipal sector could reduce its GHG emissions by 10 million tons of CO2.
    • For the Advanced Blasting from Comminution Process Optimization project, the 2011 case study noted that “preliminary results showed that electronic blasts increased rock fragmentation by 15% to 20%, which in turn reduced energy consumption associated with excavation, transport, and crushing by 5% to 10%. The electronic detonator technology was subsequently adopted by Rocky Lake Quarry in April 2006. Experimental work at Quebec Cartier Mines (QCM) then began in October of that year, with modeling studies indicating a 5% GHG reduction potential for QCM.”
    • Presently, the impact of the Deep Lake Water Cooling project on GHGs is estimated to be the elimination of 145 tonnes of nitrogen oxide and 318 tonnes of sulfur oxide annually.
    • The High Pressure Compressed Hydrogen Fuelling System project had the potential to impact GHG emissions, based on products developed from its findings. This impact would have been the result of the use of lower cost, high-pressure hydrogen fuelling systems that would facilitate the deployment of high pressure on-board storage tanks as a means to improve the range of fuel cell vehicles. However, since the project did not proceed beyond the prototype stage, no impact on GHG emissions has occurred.
  • Document review has provided information from OERD’s internal assessment of project GHG emission reductions (or projected reductions). The project related reductions are as follows:
    • Waste to Energy Systems: Transition from natural gas to syngas reduced greenhouse gas (GHG) emissions by 12,000 tonnes per year; the equivalent of taking more than 8,600 midsize cars off the road
    • Heat Recovery for Ice Rinks:: By 2014, the ECO Chill installations had realized more than 350,000 tonnes of CO2 emission reductions which are equivalent to removing, for one year, 80,000 cars from the road, each driving 20,000 km in that year
    • Drake Landing Solar Community: Reduction of 5 tonnes GHG emissions per home per year (260 tonnes/yr.)
    • Deep Lake Water Cooling: It reduced CO2 emissions by 79,000 tonnes per year - the equivalent of 20,000 fewer mid-size cars on the streets of Toronto.
    • Shell Quest Carbon Capture and Storage Project: Will reduce direct emissions from the Scotford upgrader by 35% or 1MT CO2/yr. (256,000 cars off the road)
    • Shell Enhance Oil Sands Froth Treatment: Improves energy efficiency of bitumen production by 10%, reducing GHGs by 40,000 tonnes/yr. (10,000 cars off the road)
    • Richmond Energy Garden and Composting Centre: Expected to reduce greenhouse gas emissions by about 9000 tonnes of CO2 equivalent each year (2,300 cars off the road)
    • Wasdell Falls Hydro Power Project: 8.5 million kilowatt hours a year of emission-free electricity, which is enough to power 1,200 homes.
    • Saskatchewan Boundary Dam: reduce GHG emissions by approximately 1MT/yr. (256,000 cars off the road)
  • Generally, stakeholders (including representatives of OERD) noted that measuring the Clean Energy S&T Sub-Program’s actual contributions to GHG emissions reductions, especially for R&D projects, has not always been productive or even possible. The amount of GHG emissions reductions resulting from projects depends on the eventual deployment and uptake of the technology being developed. Recently, however, estimates of GHG reduction potential attributable to the RD&D have been required in reporting, for example in the ecoEII program. The OERD now requires each project proponent provide estimates of GHG reductions in order to establish estimates of GHG reductions resulting from OERD-funded projects.  Although the information was preliminary and was not available for validation during the data collection phase, the OERD provided current examples of estimated direct and indirect emissions reductions in tonnes per year. At present, for example, the OERD estimates that past energy technology programs will directly reduce GHG emissions by up to 5.05 Mt/year by 2019, with the potential for further reductions with commercialization and market adoption of technologies developed through the program.   These tables are available in Annex H.

4.4.7 Other outcomes and unintended outcomes

Three of the previous evaluations identified unintended outcomes resulting from program activities. Additionally, the case studies noted that some of the RD&D projects are expected to contribute to other outcomes aside from GHG emissions reductions, many of which are environmental in nature (see Table 10).

4.5 Performance – Economy and Efficiency

Evaluation question: What are the internal and external factors that have facilitated or hindered the achievement of the intended outcomes of the Clean Energy S&T Sub-program?

4.5.1 Internal and External Factors

Interviewees and the previous evaluations identified a wide range of positive factors as supporting the achievement of intended outcomes.

  • Long-term commitment to RD&D. The 2010 transportation evaluation indicated there is a need for long-term private and public commitment given long lead times necessary for technological change and skill development. It concluded that the Hydrogen Energy Economy (HEE) Program provided the long-term stability “required for its partners to plan their shorter-term projects” (NRCan, Evaluation of NRCan’s Transportation S&T Sub-sub Activity, 2010).
  • Leveraging of program funding. All seven program evaluations documented leveraging from partners (over 1000 partners in total). Sustainable Bioenergy ($2.91 for every $1) and CEF ($2.10 for every $1) were the two most successful programs in this area. Further, more recent, analysis of financial data was conducted during the Synthesis review. The financial data included additional partner contributions under the CEF program that were not captured in the original evaluation, as well as recent ecoEII data. These recent figures (documented in Table 11 below) showed increased program success in leveraging funds ($3.90 for every $1).
  • NRCan expertise. The CEPG and AST evaluations found that NRCan’s technical expertise, program management skills, professionalism, and reputation had a positive influence on performance. Additionally, the 2013 transportation evaluation noted that NRCan CanmetENERGY provided modelling expertise and that Canmet-MTL provided access to computational methods, models, and expertise to help designers test the performance of new automotive materials under varying conditions.
  • NRCan research facilities and equipment. The CEPG evaluation stated that NRCan’s specialized facilities and equipment are important for developing partnerships with stakeholders and transferring knowledge to beneficiaries. Likewise, the 2013 transportation evaluation identified Canmet-MTL as providing access to pilot scale testing facilities.
  • NRCan participation in international committees. NRCan, through its participation in international committees, can leverage existing relationships to support other RD&D work. The 2013 transportation evaluation noted that NRCan was able to take advantage of its existing relationships with the US Environmental Protection Agency (EPA) and Department of the Environment (DOE), developed through the Advanced Fuels and Transportation Emissions Program (AFTER) and Electric Mobility (EM) Program planning activities. In particular, the EM Program was easily able to extend existing discussions to include plug-in hybrid electric vehicles (PHEVs). The EM Program was also able to become involved in the International Energy Agency (IEA) transportation-related initiatives due to Canada’s existing long-term involvement with it.

Interviewees and the previous evaluations identified the negative factors as impeding the achievement of intended outcomes

  • Uneven and declining funding. Interviewees and several of the previous evaluations indicated that demand for funding exceeded the resources available and that 5-year funding cycles are disruptive to the monitoring of long-term RD&D projects. This issue was exacerbated by PERD funding, which is not dependent on 5 year funding cycles, and declined by over 50% during the period under review.  In the CEPG evaluation, many interviewees emphasized a need for additional funding for “testing, demonstration, and field trials to examine the cost-effectiveness, reliability and overall performance of CEPG technologies” (NRCan, 2011a). The 2013 transportation evaluation noted sharp declines in funding (approximately 50% decline over the past two years of the program), which “affected the extent to which the Program’s original priorities and objectives could be pursued” (NRCan, Evaluation of Clean Transportation Systems (CTS) Portfolio, 2013).
  • Lack of a Canadian clean energy regulatory framework in certain technology areas. Some of the previous evaluations mentioned that a lack of clarity and direction around regulations and strategy may contribute to reduced private sector investment in new technology, reduced coordination among stakeholders and government, increased cost and time for deployment of new technology, and unfocused research that does not meet the needs of decision-makers and end-users .Footnote 43
  • Weak state of the macro-economy. Interviewees said the economic recession of 2008-09 impacted industry’s ability to contribute financing to/engage in RD&D projects and adopt new technologies. The 2013 transportation evaluation noted that slower-than-expected rate of development of fuel cell technology, limited Canadian industry capacity, financial challenges facing the automatic sector, and general economic conditions over the past five years have impeded progress.
  • Staffing limitations. Interviewees noted challenges related to replacing staff that vacated positions before the end of projects, challenges related to attracting highly qualified personnel (e.g., not being able to offer research assistants in term positions longer-term employment), and hiring restrictions during pre-election periods. These factors generally did not affect outcomes but were perceived to have affected the efficiency of project delivery.
  • Intellectual property rights. The CEPG evaluation noted that constraints arising from issues around limited access and ownership of intellectual property have led to project delays and withdrawal of project partners. Intellectual property issues become increasingly important as R&D moves from materials-related projects to developing prototype reactor systems and other technologies. The 2013 transportation evaluation indicated that relations with the Canadian electric power sector have been hard to establish as utilities are protective of their data. These information constraints create barriers to the development and commercialization of technical change.
  • Limitations on the cost-effectiveness of clean energy alternatives. The CEPG evaluation noted that a key factor limiting uptake of new technologies is that they are not yet proved as being as cost-effective as traditional technologies. Therefore, the evaluation suggested that incentive programs are required to increase adoption. Likewise, the 2013 transportation evaluation found uptake of hydrogen and fuel cell technologies was slower than anticipated and attributed this, in part, to lower cost-effectiveness.

Regulatory and permitting barriers. The CEPG evaluation reported that “regulatory and permitting barriers have made deployment of new renewable technologies difficult and costly” (NRCan, Evaluation of NRCan’s Clean Electrical Power Generation (CEPG) S&T Sub-sub Activity, 2011). The evaluation attributed some of these barriers to a lack of codes or standards for new technologies that are unfamiliar to regulators and inspectors. Further, the evaluation noted that provincial regulatory regimes have made utilities hesitant to adopt new clean and renewable energy generation and integrate them into the electricity grid because of the need to keep rates low for consumers and maintain energy supply reliability. The CEF evaluation drew similar conclusions. Interviewees noted that the absence of codes and standards can be a significant barrier to the adoption of technology. For example, a CEF small-scale demonstration project involving a new type of heat pump system noted ‘regulatory issues’ delayed the project by more than two years. As the Canadian Standards Association (CSA) test standard for heat pumps stops at zero degrees Celsius, the new demonstration system could not be tested or approved at the sub-zero temperatures in which the system was designed to operate.

Interviewees also identified the following challenges:

  • Governments in other countries expressed interest in collaborating/partnering with the federal government; however, the short-term nature, and limited amount of available funding has limited Canada’s ability to engage with them.
  • It is becoming increasing difficult to carry forward funding into future fiscal years, which makes it challenging to run programs efficiently and effectively. It makes it difficult to ensure the right funds are allocated to the right projects at the right time.
  • Some provinces have unexpectedly introduced policies that counteract the RD&D being conducted (e.g., banning the use of bio-residue in power plants)

Evaluation question: Are the activities within each clean energy S&T funding program the most economic and efficient means of making progress towards the Clean Energy S&T Sub-program’s intended outcomes?

4.5.2 Performance Reporting, Leveraging and Program Design

Historically, performance reporting and financial tracking were areas that required attention in the OERD programs. As a result, the Synthesis was limited in answering questions of efficiency and economy over the ten year period as financial tracking was not consistent, particularly prior to 2008, and could not support a quantitative analysis of cost (e.g. the cost to administer project funding, the cost per new technology developed). However, using available information, the Synthesis did note the OERD  funding is effectively leveraging R&D investment from partners. Steps to improve financial tracking were also highlighted during data collection.  There was also evidence of process efficiency within the Clean Energy S&T Sub-program, the OERD has reduced the number of RD&D portfolios it is managing and it has begun using standardized proposal review and selection processes.

Performance Reporting

  • Over time, the previous evaluations noted various concerns about the performance reporting conducted for the research areas forming the Clean Energy S&T Sub-program, including the following examples:
    • Historically, performance measurement and reporting efforts were raised as an issue of concern as measurement efforts focused on technical outputs and immediate outcomes, did not  make linkages to higher level outcomes, , and “[were] inadequate to effectively demonstrate achievement of expected outcomes” (NRCan, 2011a). It was noted that “it is not always clear — when reviewing annual reports over the six-year period — the progress and key results that have been achieved for the specific fiscal year” (NRCan, Evaluation of Sustainable Bioenergy Strategic Priority, Case Study Report, 2011).
    • Although the Sustainable Bioenergy Strategic Priority had recently developed a spreadsheet to record data from submitted projects, it was difficult to determine how project results and the resulting technologies have been used. (NRCan, Evaluation of the Sustainable Bioenergy Strategic Priority, 2012).
  • In response to the previous evaluations, the OERD has made several attempts to develop systematic performance measurement tools. OERD is continuing its efforts to improve its performance monitoring processes.
    • Interviewees indicated that for future funding mechanisms, the OERD is including Technology Readiness Level (TRL) ratings as part its performance monitoring requirements. This information will help determine the extent to which the Clean Energy S&T Sub-program is facilitating movement along the innovation chain.
    • Interviewees noted that, as part of the CEF, ecoEII, and future funding mechanisms, the OERD is asking some projects to provide 5-years of reporting following the end of the funding agreement. This information will help support analysis of the extent to which the RD&D has contributed to the development, commercialization, and adoption of clean energy technologies.
  • Previous evaluations, encountered difficulties obtaining project-level financial information for the funding mechanisms forming the Clean Energy S&T Sub-programFootnote 44.
    • Although the individual funding initiatives maintained records of project funding, it was difficult to track individual projects across funding programs.
    • Funding levels included in annual reports did not always match funding levels reported in project financial databases and actual expenditures were typically not included in annual reports and project databases.
    • In cases where projects were funded by two programs, funding was double-counted; funding sources were not clearly labelled; and funding received via subcontracts with OGDs was difficult to track.
    • The available financial data did not include information on administrative costs or capital and operational expenditures.
    • It was difficult to calculate ratios of management costs to project costs as program “management” activities had not been clearly and/or consistently defined for each of the program areas.
  • Due to changes in the design of the program, the OERD did not have an aggregated reporting structure and it was not possible to provide a complete10-year funding history for PERD at the project level..
  • Despite the above-mentioned challenges, using the SMART protocol, the TEAM evaluation determined that, based on Phase III PMPs, the TEAM investment per tCO2e reduced/year was $78.70 (OERD, TEAM Program Wrap Up Presentation #3 SMART & GHG Assessment Framework, 2011).

Leveraging through funding from partners

Financial information collected during the Synthesis review indicated that government investment in clean energy and energy efficient research had been leveraged successfully through partner funding. Excluding PERD, the financial data available during the Synthesis indicated approximately $3.5 billion leveraged from a federal investment of $900 million.

  • Table 411 provides overall program funding for core RD&D programs covered by the Synthesis. The table includes both NRCan funding, as well as partner funding (both other government departments and other non-federal partners). Overall, excluding expenditures under the PERD program, the figures indicate approximately $3.5 billion leveraged on $900 million in federal investment (or approximately $3.90 for every $1 invested).
Table 11: RD&D funding by program (excluding PERD)
Funding source T&I Initiative ecoETI CEF ecoEII Total
$ million
NRCan $239 $175 $290 $188 $892
Other federal departments $121 $2 - $8 $131
Other partners $1,148 $218 $1,867 $232 $3,465
Total project costs $1,509 $396 $2,157 $429 $4,491
NRCan % of total project costs 16% 44% 13% 44% 20%
NRCan and other federal partners % of total project costs 24% 45% 13% 46% 23%

Source: information provided by OERD

  • Information provided by OERD indicated that the total cost of RD&D projects funded under PERD between 2003-04 and 2012-13 was $541M. Information on the contribution of PERD partners was not available at the time of analysis. PERD’s data was therefore not included in Table 11; however OERD is developing a database to report this information in the future.  Given the key role played by leveraged funds from other partners in achieving results, on-going monitoring of leveraged funds will be important for demonstrating program efficiency.

Program process and design

  • Senior management and representatives of OERD indicated that grouping of portfolios (RD&D areas) has been reviewed and revised. They noted that, over the past 10 years, the number of portfolios has been reduced from about 9 to 3, a process which is leading to efficiency in program management. Senior management and representatives of OERD expressed the view that the proposal review and project selection processes have an appropriate balance between rigour and efficiency. They used standardized assessment criteria and discussions on RD&D funding were made through a clearly defined interdepartmental governance system (including interdepartmental DG and ADM committees). 

5.0 Conclusion and Recommendations

5.1 Conclusion

There is a strong rationale for continuing NRCan involvement in RD&D given the importance of maintaining Canada’s international leadership in promoting the responsible use of energy.

The governance structure built on partnership (leveraging of program funding) and collaboration with federal S&T departments, contributed to the production of well-known impacts. The delivery mechanisms that integrate internal and external research expertise and the proven long-standing funding mechanism (PERD) embedded into the other funding mechanisms, helped to ensure that programming responded to climate change and other environmental concerns, and contributed to Canada’s environmental and economic sustainability.

The evaluation synthesis found evidence of noticeable progress made towards the development and dissemination of scientific knowledge. The uptake of the developed knowledge and technology was qualitatively demonstrated, and the related challenges of performance measurement are currently being improved through the implementation of the ecoEII funding mechanism. The RD&D projects examined as part of this evaluation demonstrated collaboration and provided evidence of the contribution of the sub-program to the development and/or the revision of codes, standards, and regulations. In addition, it was found that RD&D conducted through this Sub-program has the potential to lead to enhanced competitiveness for Canadian companies. The completed clean energy RD&D projects analyzed were assessed to directly or indirectly have potential for the reduction of GHG emissions, or to carry other environmental benefits.

The information required to address issues of efficiency and economy for RD&D projects was limited to C-base funding mechanisms and for PERD after 2007-08. The Clean Energy S&T Sub-program is overseen by committees and working groups composed of federal departments’ senior managers who are assisted by team members with established expertise recognized by both internal and external partners. This process appears to be efficient and is producing the expected results. The evaluation identified this environment as a positive factor that allows an efficient and economical production of planned outputs, and drives the achievement of intended outcomes.

Recommendations

The objective of the Synthesis is to establish an easily accessible base of knowledge and to identify any outstanding gaps in program design and implementation. This knowledge base can inform program management on general trends noted in previous evaluations and identify key topics for future evaluations. The following recommendations are therefore meant to emphasize areas that should be considered in future programming.

Appendix A: Clean Energy S&T Sub-program Logic Model

Source: (NRCan, 2013a, p. 28)

Appendix B – Overview of case study projects

Table 5: Case study projects
Strategic priority/
budget/project duration		 Title Description

Oil & Gas
$323K
2008-09 to 2012-13

 Characterization of Soot Optical Properties for Novel PM Diagnostics This research project aimed to determine a valid, science-based emission factor for PM in flares. The overall objective of the project was to measure fundamental properties of combustion generated soot at conditions relevant to emission and transport into the atmosphere. The research project had two main areas of interest: 1) direct measurement of soot emissions in a controlled, laboratory setting; and 2) novel diagnostics to measure.

Oil & Gas
$127K
2007-08 to 2010-11

 Testing for New Advanced Radar Technologies to Detect Small Ice Objects The objective of this project was to evaluate the ability of new advanced radar technologies to detect small ice objects and to compare their performance with conventional radar systems. This project was intended to assess the ability of a variety of innovative radar processing technologies developed to detect ice objects and improve the safety of navigation in ice-infested waters.

CEPG
$5.6M
2004-05 to 2011-12

 Wind Energy Atlas and Wind Energy Simulation Toolkit This project aimed to develop an advanced wind forecasting system which overcame these shortcomings and provide Canadian technology tools for Canadian consulting companies to supply wind forecasting services in Canada and abroad. The focus of this project was the research, development and demonstration of wind energy software modeling tools including the Wind Energy Simulation Toolkit (WEST), the development of an online Canadian Wind Energy Atlas and a wind energy forecasting system for daily wind power production prediction.

CEPG
$29.3M
2000-01 to 2011-12

 International Energy Agency (IEA) Weyburn-Midale Project In 1997, PanCanadian announced plans to utilize CO2 injection as an enhanced oil recovery (EOR) technique for the Weyburn oil field. The plan was to deliver CO2 produced as a by-product by the Great Plains Synfuels Plant in North Dakota through a 320 km pipeline to the Weyburn oilfield. In 1999, as the EOR project was in the final stages of development, Canadian federal and provincial governments, in partnership with PanCanadian Petroleum and a number of Canadian and international public and private corporations decided to take advantage of PanCanadian‘s CO2 EOR project and undertake a major research project to investigate the economics and long term fate and security of CO2 storage in geological formations at the Weyburn oil field. The Petroleum Technology Research Centre (PTRC) was the project manager of the project, known as the IEA GHG Weyburn CO2 Monitoring and Storage Project (Phase 1 Project). Beginning in 2000, the four-year project became the largest full-scale, multidisciplinary scientific field study involving CO2 storage conducted in the world. This project was intended to encourage the widespread use of technologies required for the design, implementation, monitoring and verification of a significant number of CO2 geological storage projects in Canada and the USA.

CESI
$1.9M
2005-06 to 2008-09

 Combined Energy and Water Optimization This project focused on water waste and energy-related consumption. Although research concentrated on processes used within the pulp and paper industry, tools developed were expected to be used for any industry consuming large amounts of water. The project comprised six interconnected phases: 1) development of an algorithm to study water and energy interactions, 2) development of improved data acquisition and data handling methods, 3) development of a new approach to consider specific stream properties in complex water networks, 4) identification of constraints for water reuse, 5) development of a databank for wastewater treatment units and 6) development of a preliminary version of a software tool to conduct combined energy and water optimization (CEWO) studies.

CESI
$790K
2005-06 to 2015-16

 Advanced Blasting from Comminution Process Optimization This case study examined two projects: Integration of advanced blasting and information technology for comminution process optimization and GHG reduction in the Canadian mining industry (2005–06 to 2006–07) and Energy Efficient Rock Fragmentation (EERF, 2012–13 to 2015–16). The Integration project had three objectives: to evaluate and optimize the impact of electronic blasting detonators on downstream comminution process efficiency in terms of energy efficiency and GHG reduction; to identify and validate a methodology of communition process efficiency evaluation including a quality assessment of the optical fragmentation measuring system; and to evaluate the potential of a model based process optimization methodology integrating blasting (Blastfrag), crushing and grinding (JKSimMet or CRUSHEX and SIMBAL). The main objective of the EERF project was to develop, assess and test an integrated tool to track and monitor the hardness and the size distribution of the run-of-mine ore [rock that contains minerals]. This information would be used to adjust accordingly the feed ore preparation steps (blasting, crushing and blending) and the mill operating parameters (throughput and percent solids) for energy saving and increased productivity of grinding mills.

Bioenergy
$5.9M
2008-09 to 2010-11

 Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock The broad objective of the project was to develop routes and pathways beyond the unit operations of AD, gasification and pyrolysis of secondary biomass feedstocks for bio-based energy production, either electricity at high yield, or chemicals or liquid fuels as butanol.

Bioenergy
$2.4M
2008-09 to 2010-11

 Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues The project objective was to advance developments in the area of renewable energy for greenhouses by overcoming the technological and infrastructure barriers which currently limit uptake of biomass residues in the greenhouse industry. The research sought to: evaluate and improve fuel quality; reduce greenhouse heating costs; evaluate the potential of biomass sources, such as miscanthus as a purpose-grown crop; develop technology for removing contaminants from biomass flue gas to make it suitable for carbon dioxide supplementation to accelerate plant growth; and facilitate establishment of a market for biomass residues.

Transportation
$1.5M
2008-09 to 2011-12

 Lightweight Thermal Management systems for Turbocharger technologies In turbocharger systems, the complex corrosion environment in the exhaust stream limits material choices to stainless and high alloy materials with their associated high mass and costs. A lightweight metal that withstands the high temperature / aggressive corrosion could accelerate the use of the technology. This project aimed to build a knowledge base for incorporating lightweight material alternatives into the design of improved turbocharger components (specifically thermal management systems) both with and without exhaust gas recirculation.

Transportation
$1.9M
2002-03 to 2009-10

 High Pressure Compressed Hydrogen Fuelling System for Hydrogen Fuelling Compressed natural gas (CNG) refueling systems for natural gas powered vehicles consist of a multi-stage compressor, cascade storage and sequencing, temperature compensation and dispenser unit. The objective of the project is to design, manufacture, and demonstrate, a lower-cost optimized high-pressure hydrogen compressor to permit self-service fuelling for cars and buses at 10,000 psi.

Built Environment
$110M
1999-00 to 2003-04

 Deep Lake Cooling The overall objective of the project was to develop a system that could use the energy in cold Lake Ontario water to air condition high-rise buildings in downtown Toronto, and reduce the temperature of the drinking water supply. The project began with an environmental assessment, followed by engineering design work, followed by the construction of pipes, a pumping system, and heat exchangers.

Built Environment
$7.2M
2001-02 to 2004-05 and 2007

 Development of Innovative Integrated HVAC&R Technologies and Practices – Loblaw Supermarkets The overall goal of the project was to develop innovative integrated heating, ventilation, air conditioning, and refrigeration (HVAC&R) technologies and practices suitable for Canadian climatic conditions, using compact and hermetic refrigeration systems, and to demonstrate them in partnership with a major chain of supermarkets in Canada. These demonstrations were to provide the opportunity to better understand their technical requirements such as design, installation, commissioning, and performance as well as their non-technical barriers (knowledge transfer to energy consultants and technical operators, costs, procurements, etc.).

Appendix C- Use of RD&D results to inform development of codes, standards, and regulations

Table 6: Use of RD&D results to inform development of codes, standards, and regulations
RD&D area Project/ Contribution to development of codes, standards, and regulations
Oil & Gas

Particulate Matter (PM) Emissions from Flare

Internationally, project research has informed a number of policies and standards associated with PM emissions produced from flaring, including the following:

  • Development of Nationally Appropriate Mitigation Actions (NAMAs): Both key stakeholder interviewees reported that project proponents have been invited by the governments of Colombia and Mexico to support the development of NAMAs. Techno-economic evaluations were carried out at oil and gas production facilities to demonstrate the feasibility and cost-effectiveness of emissions reductions. According to one interviewee, sky-LOSA (Line of Sight Attenuation) can be used as a measurement tool to assess whether production facilities are achieving reductions targets. As a result, the research is informing energy, environmental, and economic sustainability policy in both countries.
  • Informing United States Environmental Protection Agency (USEPA) emission measurement standards: Project documentation indicates that work was undertaken in 2013 to have sky-LOSA considered as a new standard under the USEPA “Other Test Method” Program, which supports the development of emission measurements methodologies to provide regulatory agencies and the general public with helpful tools in this regard . A key stakeholder reported that work in this area is still ongoing.
  • Informing Global Gas Flaring Reduction Partnership policies: Both interviewees indicated that the data and results produced by the project are provided regularly to the World Bank’s Global Gas Flaring Reduction Partnership to support the development of policies.
CEPG

International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project

The interviewees indicated that the Weyburn-Midale Project was a key contributor to the development of the Canadian Standard Association Code Z741-12 on Geological Storage of Carbon Dioxide in October 2012. One of the key stakeholders further indicated that this standard is now being used in the development of a similar standard at the International Standards Organization. The other key stakeholder also mentioned that regulations for carbon capture and storage (CCS) are under development in Canada and that the Weyburn-Midale project has been instructive towards the development of those regulations.
Sustainable Bioenergy

Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues

The project provided direct input into policies, regulations and standards, as it provided emissions data as input to emissions regulations development in Ontario (Ontario Ministry of Environment [MOE] Guidelines A-7 and A-9 and MOE Interim Wood Combustor Guideline). Furthermore, emissions data from the project informed the BC Greenhouse Growers Association about the potential impact of the Greater Vancouver Regional District Agricultural Boilers Emission Regulation Bylaw No. 1098, 2008, which was enacted to set new emissions limits for biomass boilers. This was used to illustrate “typical” emissions levels, thus ensuring that emission limit policies do not place overwhelming financial burden on growers.
CESI

Combined Water and Energy Optimization

The project representative interviewed for the current case study noted that the project did not contribute to codes, standards, and regulations. However, the project influenced further process integration programs offered by federal/provincial governments and utilities.
Built Environment

Integrated Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Technologies for Supermarkets

Program documents and the interviewees for the current case study indicated that the Scarborough project upgraded a Canadian Standards Associated code to allow use of CO2 for refrigeration in.
CTS

High Pressure Compressed Hydrogen Fuelling System

Project findings from the previous case study indicated that there is potential to influence public policy makers and regulators, which are considered to be an important link in facilitating market readiness of hydrogen power. For example, the development of a high-pressure hydrogen compressor, specifically developed for hydrogen-fuelling infrastructure, may contribute to the establishment of future codes and standards, which have yet to be developed in Canada.

Appendix D- Collaborations to develop new technologies

Table 7: Collaborations to develop new technologies
RD&D area Project Collaborators
Oil & Gas Radar Processing for Ice Hazard Detection Research into, and the development of, ice detection radar was made possible through a 10-year partnership between NRCan, Transport Canada, the CCG, and Rutter Technologies.
Particulate Matter (PM) Emissions from Flare Research into, and development of, sky-LOSA (Line of Sight Attenuation) was made possible through a seven-year partnership between NRCan, Carleton University, and the NRC. However, a number of collaborators have also provided cash and in-kind support, including the Natural Sciences and Engineering Research Council of Canada (NSERC), Environment Canada, the Canadian Association of Petroleum Producers (CAPP), the Petroleum Technology Alliance of Canada (PTAC), the World Bank, and Clearstone Engineering Ltd., as well as Mexican and Colombian oil and gas companies.
CEPG Wind Energy Atlas and Wind Energy Simulation Toolkit

The 2011 case study interviews conducted as part of the current case study found that the projects led to numerous collaborations and additional research.

  • Various provinces and territories have used AnemoScope and the Canadian Wind Energy Atlas (CWEA) to develop higher-resolution wind maps (PMN Inc., 2011b).
  • The CWEA was used to establish high resolution wind variability data for the 2010 Winter Olympics area wind monitoring and forecasting (NRCan, 2006b).
  • Québec Institut National de recherché Scientifique (INRS, Varennes) requested a joint project with the CWEA to estimate wind maps over sea and coastal areas using the Wind Energy Simulation Toolkit (WEST) and Radarsat Synthetic Aperture Radar (SAR) data (NRCan, 2005).
  • The Québec Ministry of Environment and Wildlife used the CWEA to assess forest damages from high wind speeds (PMN Inc., 2011b).
  • The Ouranos consortium of Montreal expressed interest in a pilot project using the CWEA data to study the impacts of climate change on the windpower map (NRCan, 2005).
  • Environment Canada and China established an agreement to collaborate on applying the WEST system to prepare a WA for China. Additionally, Mexico expressed interest in establishing a similar agreement (NRCan, 2005).
  • Three universities undertook follow-up studies focussed on “the validation of the experimental forecast products in PEI, the development transfer function for converting wind speed to wind power production, and the development of a statistical module for short-term wind forecasting and numerical model error correction” (PMN Inc., 2011b, p. 7).
International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project The Petroleum Technology Research Centre (PTRC) was the lead on the project and served as the project’s technical manager. However, the project had a number of stakeholders that provided cash and in-kind contributions, including NRCan, the Saskatchewan Ministry of Energy and Resources, the US Department of Energy (DOE), the Province of Alberta, the Government of Japan, ten different private sector companies, and over 40 individual research organizations, including universities, geological surveys, and other groups (PTRC, 2014a). In addition, the endorsement of the project by the International Energy Agency Greenhouse Gas R&D Programme (IEA GHG) provided world-wide credibility to the project, which helped attract the high number of interested stakeholders (PMN Inc., 2011a). The key stakeholders highlighted that IEA GHG’s involvement was crucial.
Sustainable Bioenergy Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock The project contributed to both domestic and international partnerships. In particular, Modules 1, 4, and 5 contributed to “strengthen[ing] networking and/or collaboration among federal departments and agencies, the provinces, industries, universities, and/or international activities” (Guiot, 2011). The previous case study notes that the project gained expertise and techniques from these partnerships, while partners benefited from the ability to test their products and technologies, demonstrate capacity, and raise their profile (PRA Inc., 2012). Although the project effectively collaborated with stakeholders in institutes and federal agencies, the previous case study notes that the project could do more to promote private sector partnerships (PRA Inc., 2012).
Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues The project involved extensive collaboration with greenhouse growers, greenhouse associations, universities, and provincial and federal governments. Thus, industry provided key resources and support to the project, and the project, in turn, helped promote biomass development among participating growers and industry associations. For example, AMCO farms used the biomass combustion data and control strategy from the project to “develop a new line of fluidized bed biomass boilers which they intend to market to the greenhouse and agricultural industries” (Preto, 2011).
CESI Combined Water and Energy Optimization The project involved collaboration with industry and university stakeholders. In particular, the project conducted extensive testing at partnering pulp mills such as Tembec, Paprican, and Domtar (Science-Metrix Inc., n.d.). These partnerships provided valuable input for the project. Furthermore, partners also benefited from applying the project’s methodologies to their mills. Partnerships with universities led to “fruitful technology transfer to PhD students” (Alva-Argaez, 2009).
Advanced Blasting from Comminution Process Optimization

The Integration and the Energy Efficient Rock Fragmentation (EERF) projects included collaboration with the following:

  • Dyno Nobel for the use of electronic detonators to increase the fragmentation of the rocks from blasting, which reduces energy consumption and therefore GHG emissions during excavation, transportation, and comminution activities.
  • WipWare provided cameras and sensors to determine the size and hardness of the rocks. WipWare modified and upgraded the equipment during the project to meet the needs of the project (Science-Metrix, 2011). The smaller and less hard the rocks going into crushing and grinding, the less energy required for those processes.
  • The Institut National d’Optique (INO) is upgrading the 3D rock size photo sensors to be applicable for the EERF project and improve over the limitations inherent in the 2D photo sensors (OERD, 2011a). More accurate rock size readings will improve the efficiency of the crushing process.
  • The mines where these technologies are being tested.
Built Environment Deep Lake Water Cooling Key collaborators on the DLWC project include NRCan, City of Toronto, Enwave, and Toronto Environmental Alliance. NRCan was identified as a significant player in initiating the project, as its Community Energy Systems Program provided advice and expertise. It was further noted by the key stakeholder that that the former Vice President of Engineering at Enwave said on several occasions that the project would not have proceeded without the funding made available from NRCan. The Vice President noted that the timing of NRCan funding was critical to the success of the project. Working with various utilities and other municipal governments, the City of Toronto promoted and funded the project and secured the participation of Enwave, whose involvement was essential to the project’s success (Goss Gilroy, 2008, p.3).
Integrated Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Technologies for Supermarkets Representatives interviewed as part of the current case study noted that the funding and support provided by many of these partners, particularly NRCan, was critical for the project’s success. Project representatives also added that CanmetENERGY-Varennes continues efforts related to refrigeration with a focus on conventional, commercial, and institutional buildings, rather than supermarkets. These efforts often involve collaboration with stakeholders, as CanmetENERGY-Varennes often play a consulting role for specific projects, providing advice to organizations such as Hydro Quebec, the Quebec government, and Canadian manufacturing companies.
CTS Lightweight Thermal Management Systems for Turbocharger Technologies According to interviewees (NRCan and private sector) project needs were defined in consultation with industry at the proposal stage. NRCan met with Dana to generate the project proposal, and Dana brought in Novelis. In the early stages of the project, the project team worked with researchers at McGill and McMaster universities. The broader sector was engaged in proposal development through the Advisory Committee (which includes auto manufacturers, parts suppliers, etc.), which provided input to project planning and the needs assessment.
High Pressure Compressed Hydrogen Fuelling System IMW Industries Ltd. was the Compressed Hydrogen project lead, with funding support and expertise from NRCan’s TEAM program. IMW Industries Ltd. collaborated with Stuart Energy, a supplier that provides compressor motors, as part of a development arrangement. Stuart Energy worked on the motor for the hydrogen compressor. (Gilroy, 2008b).

Appendix E - Industry competitiveness

Table 8: Enhanced market opportunities
RD&D area Project Market opportunities
Oil & Gas Radar Processing for Ice Hazard Detection

The case study reported that the ice detection research resulted in the following market opportunities for Rutter Technologies:

  • The Sigma S6 radar processor is a key component of the FedNav/Enfotec IceNav Virtual Marine Radar System being used in two Canada Coast Guard (CCG) icebreakers (CCG, 2013).
  • “Rutter’s 2007 Annual Report indicated that sales increased by 75% as vessel operators began to see the business value attached to its ice navigator radar” (GGI, 2010, p. 4). It is important to recognize that this finding relates to sales prior to the research described in this case study report.
  • “All three of [Newfoundland’s] offshore platforms (Hibernia, Terra Nova and White Rose) are using Rutter’s Ice Navigator.”
  • “Many international vessels have adopted Rutter’s Ice Navigation system: German research vessels, Russian tankers and icebreakers, and vessels with several national coast guards operating in ice infested waters. It’s also used by some ships performing seismic surveys in Arctic regions, such as those with the French-based geophysical services company CGGVeritas” (GGI, 2010, p. 4).

Interviewees reported that there are about 1,000 installations using the Sigma S6 radar processor.

Further, the Sigma S6 Ice Navigator has the potential to be used for other applications. For example, one European customer, which had initially purchased the radar system for ice navigation purposes, discovered that the Sigma S6 radar processor was capable of detecting small oil slicks caused by sub-sea oil seepage (Dawe, 2011).
CEPG Wind Energy Atlas and Wind Energy Simulation Toolkit These projects were not intended to create enhanced market opportunities for Canadian companies. However, the availability of the Canadian Wind Energy Atlas (CWEA) and forecasting tools may have contributed to the growth of the Canada’s wind energy industry. For example, following the release of the CWEA in 2004 and AnemoScope in 2005, Canada’s installed wind power capacity increased by 50% in 2005 and 100% in 2006 (NRCan, n.d.). Further, the 2011 case study reported that, between 2003 and 2009, Canadian wind energy electricity generation capacity increased almost 10-fold, from 322 MW to 3,150 MW, thereby generating enough power for almost 1 million homes (PMN Inc., 2011b). Key stakeholders interviewed as part of the current case study indicated that the Canadian wind energy industry is continuing to grow. Nonetheless, as noted in the 2011 case study, the growth of the industry cannot be directly attributed to the development of the CWEA and forecasting tools (PMN Inc., 2011b).
International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project The interviewees agreed that the Weyburn-Midale project enhanced market opportunities for Canadian companies through the commercialization of products, as well as information and knowledge. The key stakeholders noted that certain developed/improved monitoring and measurement technologies have been proven through this project and are now commercialized. The interviewees did not provide any specific examples of the tools. Nonetheless, the key stakeholders highlighted the Best Practices Manual and explained that the knowledge and information passed through the manual can be considered as a commercialized “product.”
Sustainable Bioenergy Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock

The project did not result in extensive commercialization, as it focused primarily on earlier stages of the innovation chain. However, the previous case study also notes the following potential value-added opportunities expressed by private industry (PRA Inc., 2012):

  • AirScience Technologies showed interest in using the project findings to compare with other technologies for biogas upgrading.
  • Greenlight Innovation expressed interest in using some of the results related to solid oxide fuel cells and is negotiating a contract.
  • GreenGenTech expressed interest in formally collaborating with the National Research Council (NRC) to use developed technologies related to hot-gas clean-up and syngas analysis. Nexterra was also interested in using this technology.

It is unclear whether stakeholders have followed through on these plans since the project was completed.
Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues

A central goal of the project was to stimulate the development of infrastructure to establish a biomass residues “market.” However, project representatives interviewed for the current case study indicate that uptake of project results since the end of the project has been limited by decreasing natural gas prices. Nonetheless, the previous case study suggests bioenergy use in greenhouses is widespread and the project created awareness and potential for enhanced market opportunities (NRCan, 2012a).

  • Approximately 20 to 30 greenhouses currently use bioenergy technology, including almost half of all large greenhouses. A project representative noted that greenhouses sometimes have concurrent natural gas and bioenergy heating systems, switching from one to another depending on the cost of fuel.
  • The project created a potential for new industries, products, and/or value-added opportunities with respect to wood residues, purpose-grown biomass resources (e.g. miscanthus, switchgrass), and agricultural waste feedstocks (e.g. grain chaff).
  • Several project partners are developing the biomass supply market, including the New Energy Farms Group for purpose-grown crops and AgEnergy Co-op for wood residues.
CESI Combined Water and Energy Optimization (CWEO)

The project representative for the current case study noted that enhanced market opportunities was not a direct intended output of the project, but it still contributed to this outcome. The previous case study notes the following achievements that relate to this outcome (Science-Metrix Inc., n.d.):

  • The CWEO software tool was successfully transferred to the Tembec Skookumchuck mill, and the project expected broader adoption of this technology.
  • The CWEO software tool was commercialized under the name CADSIM, and FPInnovation has expressed interest in using the tool and conducted some preliminary tests in its mills.
  • The CWEO software tool could potentially provide enhanced market opportunities to industries other than pulp and paper, such as petroleum refining.
  • All interviewees in the previous case study noted that the tools developed by the project have the potential to increase industry competitiveness by reducing water consumption and optimizing energy efficiency. However, there was no quantitative evidence to evaluate impact.
Advanced Blasting from Comminution Process Optimization

The 2011 case study reported that the Integration project resulted in mining organizations adopting more efficient technologies, including electronic detonators. Dyno Nobel noted offering electronic detonators to their customers and having a slight competitive edge over its competitors (Science-Metrix, 2011).

Both interviewees mentioned that both projects resulted in the development/improvement and promotion of 2D and 3D rock measurement tools and rock hardness measurement tools for mines. Companies such as WipWare and the Institut National d’Optique (INO) would benefit from the promotion of these products and benefit from selling them to mining companies. Specifically, one interviewee indicated that once the 3D optical measurement system was ready for commercialization, the technology could be licensed to a manufacturer who could then sell it to the mining industry.
Built Environment Deep Lake Water Cooling (DLWC)

Enwave’s participation in this project was a significant factor in DLWC’s success. Through the project’s success, Enwave has benefited, as stated on its website:

Enwave Energy Corporation is a leading provider of innovative, sustainable energy services. With district energy operations in Toronto and Windsor, Ontario, the company provides environmentally friendly heating and cooling to many of the most prestigious buildings and landmarks in both cities. In Toronto, 40 km of underground pipes interconnect over 150 buildings to three steam plants and to the company’s world renowned Deep Lake Water Cooling system. Customers include all the major downtown hospitals, multi-residential and class A commercial office towers, entertainment facilities and government buildings. In Windsor, the Enwave managed system supplies hot and chilled water to the City’s Utilities Commission and the Windsor Casino. (Enwave, 2013)

The interviewee also noted that Enwave was purchased by Brookfield Asset Management, which is a growth-oriented company that will be looking for ways that Enwave can increase their work in other cities, including implementing the DLWC system.
Integrated Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Technologies for Supermarkets

The previous case study notes that the integrated refrigeration system installed at Loblaw supermarkets provides many benefits to the company, including reduced energy used for building space heating, reduced refrigeration energy consumption, easier operation and maintenance, and more stable food temperatures which leads to higher food quality and better shelf life (Goss Gilroy Inc., n.d.).

However, the previous case study also adds that, despite these benefits, the economics of the technology still fall slightly short at current prices. In particular, the payback period is approximately five years, while Loblaw’s typically requires three years or less (Goss Gilroy Inc., n.d.).

The interviewees highlighted that the original equipment manufacturers (OEMs) that were involved in the initial design and discussion of these projects now have the capacity and technology to implement these systems in stores across North America. The interviewees did note that while the OEMs that consulted on these projects are American based, Canadian OEMs have entered the market as well.
CTS Lightweight Thermal Management Systems for Turbocharger Technologies

Dana company representatives estimate that the Turbocharging Technologies project results could affect between 5% and 10% of the company’s total business once they can prove the strength and corrosion resistance of the new aluminum alloys.

As a result of the project, Novelis has developed a better understanding of industry’s material needs, new alloys, and the strength of different hardening elements. Novelis is planning to continue their in-house R&D on these new alloys and are interested in the (pending) corrosion testing results from Dana and CANMET-MTL.
High Pressure Compressed Hydrogen Fuelling System The Compressed Hydrogen project had the potential to impact a wide range of beneficiaries, including the automotive industry in fuel cell cars, alternative energy producers, manufactures of back-up power, potential end-users, and policy makers and regulators. In addition, a successful project would also have implications for potential end-users. However, the project did not proceed beyond the component prototype stage and has since been abandoned by the proponent. Nonetheless, a key stakeholder noted that the knowledge gained from research and component prototyping done on this project, has led to the development of a special drive motor and improved oil-less compressor technology that has is used in natural gas compressor products that IMW currently makes.

Appendix F - Linkages with other research

Table 9: Linkages with other research
RD&D area Project Previous RD&D Continuation/additional RD&D
Oil & Gas Radar Processing for Ice Hazard Detection

The “Radar Processing for Ice Hazard Detection” project builds on radar technology research that has been ongoing since the 1990s. For example, interviewees reported that early research into ice detection radar grew from research focused on identifying alternate uses for search and rescue technology.

It is difficult to pinpoint exactly when Rutter Technologies (formerly Sigma Engineering) first started developing ice detection radar; however, the 2011 case study indicates that, in the Spring of 2000, Rutter installed its Sigma S6 radar processor for pilot-testing on the Canship-operated shuttle tanker M.T. Kometic (GGI, 2010). This suggests that development of the technology for testing would have occurred sometime in the 1990s.

In 2004, a scoping study to identify research areas for improved year-round transportation in the Arctic, undertaken as part of the Climate Change Technology and Innovation Initiative (CCTII), found that the detection of multi-year ice was unanimously identified as a key research area by 15 Captains who regularly operate vessels in the Arctic (O’Connell, n.d.). In 2005, in response to this study and as part of a 4-year research program to improve ice information, Rutter Technologies, NRCan, Transport Canada, and the Canada Coast Guard (CCG) undertook a project to develop enhanced marine radar (O’Connell, n.d.). Specifically, the project involved integrating the following advanced radar technologies (including the Sigma S6 radar processor), which were developed through previous studies, into a single system optimized for ice detection.

Between August 2006 and March 2008, field trials of the integrated system were conducted on the CCGS Henry Larsen. The trials found that the system “had become an integral tool for the bridge navigation team” and that it enabled the vessel to “manoeuvre around difficult areas, saving both time and fuel while minimizing the potential for ice damage” (O’Connell, n.d.).

Between 2009 and 2013, at the same time new ice detection algorithms were being developed, another project was being undertaken to design and develop cross-polarized scanners and integrate them into a prototype radar system. These cross-polarized scanners were intended to improve the contrast in radar images between multi-year ice, first-year ice, and other types of ice and open water. Subsequent trials of the radar prototype, which integrated cross-polarization scanners, were conducted aboard the CCGS Henry Larsen in the Arctic in 2011 and 2012 and in Southern Canada in 2012 (CCG, 2013).

 

Additionally, a one-year research project related to the effects of pressured ice on vessels was undertaken. This project involved analyzing data on ship entrapments, simulations of vessel performance in pressured ice conditions, and development of prediction criteria for dangers to navigation.
Particulate Matter (PM) Emissions from Flare

In 2005 a small research project was undertaken to identify various knowledge gaps and requirements for the development of a technology that could measure black carbon emissions from flares. The research report concluded that research and improved knowledge on soot optical properties were necessary for the quantification of black carbon emissions.

Following the initial project, research was carried out between 2006 and 2008 which led to the development of sky-LOSA (Line of Sight Attenuation) technology used to measure PM emissions from flares. With the use of a “specially constructed inverted-flame soot generator,” PM emissions were reproduced in a laboratory setting, and a combination of experimental techniques were used to gather data, including transmission electron microscopy, scanning electron microscopy, extractive filter sampling, gravimetric analysis, and multi-wavelength line-of-sight optical attenuation analysis (NRCan, 2008, p. 10). According to a key stakeholder, a first-generation prototype of the sky-LOSA technology was developed over the course of this project. The newly developed sky-LOSA technology was tested in the field for the first time on a large-scale flare at a gas plant in Uzbekistan.

 Drawing on existing sky-LOSA measurement technology, a project was undertaken to “adapt it for the unique requirements of PM emission measurement from unconfined flares” (NRC, 2008, p. 3). Specifically, the intended outcome of the project was to develop a prototype Laser-Induced-Incandescence (LII) system “which could be applied to the quantitative measurement of PM emission from gas flares” in the UOG industry in Canada and abroad (NRC, 2008, p. 3). The prototype LII technology uses a laser beam to heat PM particles to incandescing temperatures and measure the emission through a state-of-the-art detection system (NRC, 2008). According to project documentation, the research and the development of the technology for this project were to act as an alternative to the method developed as part of the sky-LOSA diagnostic by “providing a technique against which to run comparative tests” (NRC, 2008, p. 5). A key stakeholder indicated that project results concluded that it was not technically feasible to measure a large number of soot particles emitting from an open source using a single LII diagnostic laser beam.
CEPG Wind Energy Atlas and Wind Energy Simulation Toolkit

The following two projects laid the foundation necessary for the development of the CWEA and forecasting tools:

  • The Wind Energy Evaluation Project. This project, initiated in 2000, conducted preliminary research into the development of wind energy modelling systems. Key stakeholders interviewed as part of the current case study described this initial project as a feasibility study to determine if high resolution models capable of providing real-time mesoscale wind forecasts, which were developed as part of meteorology experiments conducted in Europe in 1999–2000, could be adapted for wind resource assessment purposes. Key stakeholders reported that the feasibility confirmed the model was capable of supporting wind resource assessment.
  • The Wind Energy Simulation Toolkit (WEST). This project involved the development of a state-of-the art wind-mapping system, designed specifically for use by the wind energy industry (Yu et al., 2005). WEST uses a statistical-dynamical downscaling approach,Footnote 45 taking into account “atmospheric forcing in wide range scale both in time … and in space…,” for wind resource assessment (Yu et al., 2005, p. 3). Specifically, it simulates atmospheric flow over complex terrain at the meso- (approximately 1 km) and micro-scale (approximately 100 metres) resolutions. WEST was one of the first pieces of software that used both meso- and micro-scale models to inform the selection wind turbine sites (PMN Inc., 2011b). WEST was validated using observational data provided by the Ministère des Ressources naturelles du Québec and a demonstration was conducted in the Gaspé Region of Québec (Yu et al., 2005). Further, a private company pilot tested WEST in 2001–02 (The EnSimWE Team, 2005).

Key stakeholders interviewed as part of the current case study reported that two follow-up projects, funded through the ecoENERGY Innovation Initiative (ecoEII), are continuing the development of forecasting tools for the wind energy industry.

  • An ensemble-based forecasting project is developing new technologies capable of providing probabilistic forecasts for wind energy (e.g., wind speed will be 5 m/s at a probability of 95%).
  • A middle-scale modelling of wind speed time series project is producing a three-year time series for wind speed at a two km resolution. This information will be used to update the CWEA.
International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project The key stakeholders indicated that little prior research was conducted in this field prior to the Phase 1 project. Interviewees noted that there was a Norwegian field in the 1990s implementing a similar type of activity, but that most of the previous research was theoretical and only conducted in laboratories. For example, taking rock samples and injecting them with CO2 to study how the CO2 moved through the rock. The Norway project at the offshore Sleipner West gas field has been injecting one million tonnes (Mt) of CO2 into saline formations yearly since 1996 (van Alphen, Hekkert, & Turkenburg, 2009).

Since the start of the WMP, Canada has undertaken a number of activities and projects related to CCS.

Canada’s actions on advancing CCS

  • In 2006, the Government of Canada in collaboration with industry published Canada’s CO2 Capture and Storage Technology Roadmap which was a guidance document to identify technology strategies, processes and integration system pathways for CO2 to be captured and stored in Canada.
  • The Canada-Alberta ecoENERGY CCS Task Force was formed by the Prime Minister of Canada and the Premier of Alberta to provide information on how government and industry can work together on CCS in Canada. In 2008, the task force generated the Canada’s Fossil Fuel Energy Future: The Way Forward on Carbon Capture and Storage report which recommended some immediate actions and milestones for 2015.
  • Industry in Alberta created the Alberta Carbon Capture and Storage Development Council to develop an implementation plan for CCS in Alberta. They generated a report in 2009.

Demonstration projects

  • Boundry Dam CCS Project: In 2008, the Government of Canada committed $240 million to co-fund the world’s first and largest CCS project at a coal-fired power plant. The project is located in Saskatchewan.
  • Quest. A fully integrated CCS project to capture and transport by pipeline over 1 million tonnes of CO2 per year and store it safely and permanently into the ground. This joint venture between Shell Canada, Chevron Canada Limited and Marathon Oil Sand L.P. is funded by the Government of Canada ($120 million) and the Government of Alberta ($745 million).
  • Alberta Carbon Trunk Line project: Integrated CCS system incorporating gasification, capture of CO2 emissions, transportation, storage and EOR. Enhance Energy and North West Upgrading are partnering to provide CO2 gathering and distribution infrastructure for the management of CO2 emissions from facilities in Alberta’s Industrial Heartland and Central Alberta. The Government of Canada ($63.3 million) and the Government of Alberta ($495 million) are contributing funds to this project.

In April 2014, the Government of Saskatchewan through its Ministry of Economy entered a funding agreement with PTRC to build on the work of WMP and continue research on the geological storage of CO2. Specifically, this RD&D “will address important technical issues associated with [CO2] storage, including well bore integrity, predicting [CO2] migration underground, and identification of effective monitoring techniques” (Government of Saskatchewan, 2014). One of the key stakeholders, prior to April 2014, highlighted that more work was being considered on well integrity at the Weyburn oil field and that Cenova had already agreed to the further research.
Sustainable Bioenergy Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock (BADGas)

A project representative emphasized that there has been a substantial amount of research over the past 35 years, which indirectly contributes to the project. It is difficult to summarize this previous research, given its volume. However, project reporting notes several recent studies that provided input into particular modules of the project:

  • Module 1 (“Anaerobic digestion”) builds on a previous project from 2005–2008 to develop an AD demo mobile facility ("Anaerobic digestion test mobile facility for industrial and municipal sludge" Thread TID8 21) (Guiot, 2011). A project representative noted that the module used this AD mobile facility for testing and simulation before conducting AD on actual sites.
  • Module 2 (“Biobutanol from methanol or methane”), according to a project representative, was an adaptation of previous NRC work that developed bioplastics from methanol rather than butanol.
  • Module 3 was a continuation of Institute for Chemical Process and Environmental Technology (ICPET) work and the module was led by a sub-project leader from ICPET (PRA Inc., 2012).

The project also had strong connections with the following concurrent programs and initiatives:

  • Several modules link to the NRC’s National Bioproducts Program, whose third theme is “use of biomass and municipal waste to produce energy and chemicals through anaerobic digestion (AD) and gasification” (Guiot, 2011). In particular, Modules 3 and 4 of the project were closely linked with “Solid Oxide Fuel Cell for power generation from syngas and biogas” and “Synthetic Natural Gas from Biomass,” which are both ongoing projects under the Bioproducts Program. Module 1 is closely related to “Synthetic Natural Gas from Biomass” under the Bioproducts Program (Guiot, 2010).
  • Module 5 was connected to NRC-BRI’s core research project “biohydrogen production from syngas” (Guiot, 2008).
  • The project links closely to a France (CEA)-Canada (NRC/NRCan) collaborative project on gasification (Guiot, 2008).

Finally, the project also led to some subsequent research. In particular, a project representative noted that a recent Clean Energy Fund project was influenced by BADGas, as it adapts AD methods to convert syngas to renewable natural gas.
Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues

The project was a direct continuation of a predecessor project from 2006 to 2008 called Renewable Energy for Greenhouses: Biomass Residues and Advanced Conversion Technologies.

Project representatives stated that this predecessor project assessed the supply of feedstock and availability of biomass conversion techniques to provide energy for greenhouses. The main focus of the predecessor project was evaluating fuel availability, the cost and security of supply, fuel pre-treatments and handling, emissions control technology, and fuels matrices, which examine the relation between residue properties, emissions performance, and conversion technology.

These activities represent the necessary first steps for developing technology to provide heat, power, and CO2 for greenhouses using biomass. The current project built on this work by implementing and testing these biomass sources and conversion technologies within greenhouses.

The final report notes several follow-up steps and plans for the project that involve collaboration with key stakeholders (NRCan, 2012a; Preto, 2011):

  • AAFC and OMAF Harrow Research Station expressed interest in continuing work on using biomass flue gas to provide carbon dioxide enrichment for plants for greenhouses. CanmetENERGY will transfer existing knowledge, models, and equipment to Harrow.
  • OMAF and AAFC expressed interest in a continued partnership with CanmetENERGY in the event of further funding opportunities.
  • The project developed techniques to reduce carbon monoxide, ethylene, and sulphur dioxide to levels safe for plants. However, more work is required to reduce NOx to levels acceptable for long-term exposure. CanmetENERGY will contribute to this need by assisting interpretation of combustion data and preparing scientific publications arising from this and future work (Preto, 2011).
CESI Combined Water and Energy Optimization

As described above, a project representative noted that the origins of the project came from initial PERD funding 12 to 15 years ago, which conducted case studies related to energy optimization in the process industry (pulp and paper, food and drink, oil refineries, etc.).

This original research worked to develop knowledge and tools to improve energy efficiency using a systematic, site-wide approach. It conducted case studies at pulp and paper plants, finding strong water and energy interactions which complicate the task of improving energy efficiency. The project concluded that the key to achieving maximum energy efficiency and minimum environmental footprint is to understand these interactions.

The following two follow-up projects resulted from CWEO, each funded under PERD:

  • PERD E11.011 Integrated Forest Biorefinery – Optimal Retrofit Strategies for Canadian Kraft Mills: The main objective of this project, which was funded through PERD from 2009–10 to 2012–13, is to “propose an innovative and feasible process design to integrate biorefining technologies efficiently into existing pulping processes at Kraft Mills” (Science-Metrix Inc., n.d.). This design was expected to integrate energy and water interactions observed through software developed by CWEO. It planned to explore several possibilities to achieve this objective, including “the transformation of hemicellulose to ethanol and the gasification of wood residues” and “the use of paper waste and other biomass to partially replace fossil fuel consumption” (Science-Metrix Inc., n.d.).
  • PERD E11.002 Heat Recovery and Upgrading: This project was funded from 2009–10 to 2012–13 under PERD to ensure that industry makes full use of “waste heat,” Footnote 46 which is commonly identified as a significant energy resource. To this end, the project developed new analytical approaches and tools that “consider the heat sources and demands throughout the plant as well as the various heat recovery and upgrading technologies” (Bedard & Sunye, 2013). This project relates to CWEO “up to a certain point,” but primarily builds on another project funded under the previous PERD cycle, entitled Novel Industrial Refrigeration Technologies (Bedard & Sunye, 2012).

A project representative added that, recently, they have engaged in a substantial partnership with FPInnovations and Canadian Forest Service (CFS), both of which are providing substantial funding to perform more case studies with pulp and paper mills. The intent of this work is to generalize the recommendations of CWEO and other related projects and transfer this knowledge to industry.
Advanced Blasting from Comminution Process Optimization Neither of the proposals or previous case studies referenced any previous research done on advancing blasting from comminution process optimization.

However, COREM is undertaking two projects concurrently with the EERF project:

  • Particle Size Measurement Using New 3D Technologies
  • Rock to Particle Hardness Tracking for Understanding and Prediction

“The objectives of the second project are stated as follows:

  • Develop a hardness indicator based on power consumption, feed and product size distribution and throughput of the crusher
  • Demonstrate the on-line indicator system in continuous at pilot scale and implement in a plant” (OERD, 2013).
Built Environ-ment Deep Lake Water Cooling

An earlier project in Canada using the concept of deep water cooling was the Purdy’s Wharf project on the waterfront of Halifax, Nova Scotia, constructed in 1986 and expanded in 1989. This project involved using deep cold sea water to cool air in the Purdy’s Wharf office complex. Here, cold seawater is drawn from the bottom of the harbour through a pipe to a titanium heat exchanger in the basement of the complex where the closed loop of water, cooled by the sea water, is then pumped to each floor of the building where fans blow air over the cooling pipes to cool the air. The seawater is later returned to the harbour floor. This project was managed and partially funded by the Wharf office complex building developer and Federal Government resources to serve as a demonstration project for the technology (Community Research Connections (2006). While no direct linkage is made to the DLWC project, the concepts used are similar.

In the early 1990s, NRCan was approached by the originator of the concept of deep water cooling for the City of Toronto, to further investigate its possible implementation. Initially, Ontario Hydro was engaged, and then representatives from the City of Toronto and surrounding municipal governments were approached to participate as part of a Deep Lake Water Cooling Investigation Group. To facilitate cooperation, the Canadian Urban Institute (CUI) was engaged, as its president had previously served as Chair and CEO of the Board of Toronto District Heating Corporation.

During this time, Pollution Probe and the Toronto Environmental Alliance were brought in to ensure that the process was transparent and that environmental issues were fully addressed. A feasibility report on the deep lake water cooling concept was developed. Within this report, Enwave (formerly Toronto District Heating Corporation) postulated that the proposed expansion of drinking water facilities for the City of Toronto created the opportunity for significant capital cost reductions, as water supply and cooling system function would be shared. This concept was instrumental in moving the project forward (Goss Gilroy, 2008, p.1).

 No specific mention was made in connection to concurrent research, although the previous case study on this project noted that other jurisdictions in Canada may be candidates for this type of project, but there are limiting geographical and financial factors that may impact implementation.
Integrated Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Technologies for Supermarkets

In 2000, CANMET Energy Technology Centre in Varennes (CETC-V) examined whether HVAC&R technologies could mitigate the heating and refrigeration inefficiencies described above. CETC-V engaged in awareness building and discussions with stakeholders about these issues, resulting in Loblaw Companies Limited (Loblaw) approaching them in 2001 to potentially apply these methods to their stores (Goss Gilroy Inc., n.d.).

As a result, CETC-V conducted a study which found that adopting environmentally sound HVAC&R strategies could lead to the following substantial environmental improvements for Loblaw supermarkets: “88% of the total refrigerant charge, 18% of the overall energy consumption, and 76% of CO2 equivalent emissions” (Goss Gilroy Inc., n.d.). This study ultimately led to the project’s TEAM funded demonstration in Repentigny.

 None mentioned.
CTS Lightweight Thermal Management Systems for Turbocharger Technologies

A key stakeholder noted that there was prior research at CANMET-MTL that influenced the initial direction  of the Turbocharging Technologies project which included alloy development of high service-temperature resistant aluminum engine castings in collaboration with General Motors, as well as a project dealing with elevated temperature mechanical property testing of thin aluminum sheet in collaboration with the University of Waterloo related to computational prediction of warm forming of aluminum. In addition, since machining and corrosion research on alloys used in novel turbocharging systems was not well-developed, this area was seen as a place where the further work was needed.

The Turbocharging Technologies project also utilized existing expertise in thermal management technologies from Dana Canada Corporation (Dana) and aluminum sheet processing from Novelis Inc.

Dana’s expertise derives from its decades of production experience with automotive thermal management systems (Dana Corporation, 2012). These systems are needed to cool air after it leaves a turbocharger and before it enters the combustion chamber of an engine. Prior to the Turbocharging Technologies project’s inception, Dana had developed a new family of heat exchanger products, but there were limitations on operating conditions of the turbocharger system since excessive temperature could affect long-term heat exchanger durability. Through the process of continuous improvement, Dana began working on ways to improve their product, and this project fit into that process.

 None mentioned.
High Pressure Compressed Hydrogen Fuelling System An interviewee  noted that he conducted his own research on the hydrogen fuelling system infrastructure prior to work on this project. He indicated that the existing data showed a constrained outlook for the hydrogen fuelling infrastructure at the time and that there were many technical challenges existing for the industry. The interviewee indicated that it was at this time that NRCan approached IMW to gauge their interest in undertaking a project in this area. None mentioned.

Appendix G - GHG emissions reductions

Table 10: RD&D contributions to GHG reductions
RD&D area Project GHG reductions
Oil & Gas Radar Processing for Ice Hazard Detection The primary motivation for the research was to increase the safety of marine transportation, the radar technologies being developed are intended to improve the navigational capabilities of marine vessels. By improving the navigational capabilities of marine vessels, which may improve fuel efficiency, ice detection radar may indirectly contribute GHG emissions. The 2011 case study reported that “through its ability to detect ice, [the radar] creates the possibility for greater fuel savings as vessels will be able to avoid situations where a considerable consumption of fuel is required when breaking new channels through ice” (GGI, 2010, p. 5). Data on fuel savings and/or GHG emissions reductions are not available.
Particulate Matter (PM) Emissions from Flare Providing industry and government regulators with a reliable and accurate measurement tool for the quantification of black carbon emissions will support the development and implementation of informed GHG reduction policies and targets, the enforcement of regulations, and the management of PM emissions. For example, results of sky-LOSA (Line of Sight Attenuation) measurements have been used to inform the development of Nationally Appropriate Mitigation Actions (NAMAs) in Colombia and Mexico. Additionally, sky-LOSA can be used to measure emission rates and assess whether emissions reductions are being achieved. As a result, sky-LOSA can be utilized to support the enforcement of regulations and mitigation activities.
CEPG Wind Energy Atlas and Wind Energy Simulation Toolkit As noted in the 2011 case study, the Canadian Wind Energy Atlas (CWEA) and forecasting tools do not directly contribute to GHG emissions reductions (PMN Inc., 2011b). However, they may encourage increased use of wind energy, which will help reduce GHG emissions associated energy use. Wind energy, unlike energy produced using fossil fuels, does not generate air emissions or contribute to smog, acid rain or climate change. For example, compared to electricity generated using fossil fuels, “a single installation of six 65 kW wind turbines in Newfoundland is expected to …reduce [annual] CO2 emissions by approximately 750 tonnes” (NRCan, 2014).
International Energy Agency (IEA) Greenhouse Gas Weyburn-Midale Project

The key stakeholders said that it is important to note that the Weyburn-Midale Project (WMP) does not directly contribute to reducing GHG emissions as the project itself only involved monitoring and other activities to ensure that the CO2 was being stored safely and securely in the ground. However, the process of the oil companies storing CO2 in the ground does reduce GHG emissions that otherwise would have been released into the atmosphere. In other words, whether the WMP was undertaken or not, the oil companies would have still undertaken their enhanced oil recovery (EOR) projects and stored CO2 in the ground. However, it can be argued that the monitoring and testing conducted as part of WMP has shown that carbon capture and storage (CCS) is a valid method of reducing GHG emissions and has developed a number of tools and models that can be applied to other CCS projects; therefore, encouraging more work in this area and further reducing GHG emissions.

Between 2000 (the start of the injection of CO2 into the Weyburn oil fields) and 2011, approximately 18 Mt of CO2 has been stored in the Weyburn reservoir. Annual injection rates of new CO2 are about 2.4 Mt per year (about 6,500 tonnes per day) with an expected total of more than 30 Mt of CO2 stored by the end of the Weyburn EOR project (PTRC, 2014b; Whittaker et al., 2011; Wildgust et al., 2013).

Between 2005 (the start of injection of CO2 into the Midale oil fields) and 2011, approximately three Mt has been stored in the Midale reservoir. Annual injection rates of new CO2 are about 0.7 Mt per year (about 2,000 tonnes per day) with an expected total of more than 10 Mt of CO2 stored by the end of the Midale EOR project (PTRC, 2014b; Whittaker et al., 2011; Wildgust et al., 2013).

The interviewees indicated that up to 28 million tonnes of CO2 have been stored to date in the Weyburn and Midale sites, with a projected amount of 40 million tonnes by 2035, with the potential of at least another 25 million tonnes. While the project is completed, the Weyburn and Midale sites will be storing CO2 for another expected 20 years. One of the key stakeholders further noted that the project is demonstrating a technology that can be used elsewhere; and therefore, there is potential to store millions of more tonnes of CO2 around the world.
Sustainable Bioenergy Technologies Beyond Anaerobic Digestion (AD), Gasification and Pyrolysis for Bio-based High-Value Production from Secondary Biomass Feedstock The project has the potential to benefit the environment, as it promotes use of biofuels as a substitute for non-renewable fossil fuels and potentially reduces GHG/CAC emissions by diverting biomass waste toward energy production. To illustrate this potential, project representatives from the previous case study stated that if the Canadian pulp and paper sector treated only 30% of the organic component of total solid waste, the municipal sector could reduce its GHG emissions by 10 million tons of CO2 (PRA Inc., 2012). Project reporting also notes that “biomethane combustion reduces emissions of NOx, CO, particulate matter (PM) and unburned HCs, by 80, 50, 98, and 80%, respectively, as compared to petroleum derived diesel” (Guiot, 2008). Although project reporting and interviews indicate that there is high potential for reduced GHG emissions, project outputs have not been commercialized and widely adopted by industry. Thus, the project has not yet realized its GHG-reducing potential.
Replacement of Fossil Fuels Used in Greenhouses with Energy from Biomass Residues It is unclear whether the project resulted in reduced GHG emissions. However, documentation notes a potential for reduced GHG if industry adopts the project results. In particular, the final report indicates expectations that biomass systems will increase fuel utilization efficiency by 25%, reduce system cycling time (thus reducing CAC emissions by 20%), and will reduce particulate from current 150 mg/m3 to below 90 mg/m3 (Preto, 2011).
CESI Combined Water and Energy Optimization Reducing GHG emissions was an intended outcome of the project; however, the previous case study notes that it is difficult to directly attribute the project to emissions reduction. However, project documentation does provide estimates and projections of the project’s potential effect on GHGs: Energy savings for standard size pulp and paper mills are up to 60 PJ/year and GHG emissions reductions are up to 0.8 MT CO2 eq/yr. (Science-Metrix Inc., n.d.). The project representative interviewed as part of the current case study reiterated these projected GHG reductions, noting that pulp and paper plants could reduce energy consumption by 15–30%. They noted that, at a minimum, the project had an impact on GHGs produced by the mills, which served as case studies for the project. Thus, the impact on GHGs might be between 50–100 kilotons per year of reduced GHGs. However, beyond these particular mills, it is difficult to estimate the project’s impact on GHGs.
Advanced Blasting from Comminution Process Optimization

It is estimated that 5.3 Mt/y of GHG emissions are emitted from the blasting, excavation, transportation, crushing, and grinding processes from open-pit and underground mines across Canada. If the expected efficiency improvement from the Integration project of about 10% was achieved for mines across Canada, the GHG reduction could be around 0.5Mt/y (OERD, 2005). However, the 2011 case study cited a Climate Change Technology Innovation Initiative (CCTII) 2006–07 Annual Report that indicated that the Integration project had potential energy reductions of 62 PJ and GHG emissions reductions of 0.25 Mt/y (Science-Metrix, 2011).

The 2011 case study also noted that “preliminary results showed that electronic blasts increased rock fragmentation by 15% to 20%, which in turn reduced energy consumption associated with excavation, transport, and crushing by 5% to 10%. The electronic detonator technology was subsequently adopted by Rocky Lake Quarry in April 2006. Experimental work at Quebec Cartier Mines (QCM) then began in October of that year, with modeling studies indicating a 5% GHG reduction potential for QCM” (Science-Metrix, 2011).

The proposal for the Energy Efficient Rock Fragmentation (EERF) project indicated an increased expected efficiency improvement from its activities of about 20% for mines across Canada, and, therefore, the GHG reduction would be around 1.0 Mt/y. The proposal also noted that “considering that comminution consumes about 3% of the world electrical energy, which is often coal generated, there is no doubt that the impact of this project on GHG reduction could be even more significant” (OERD, 2011a).

Data on actual energy savings and GHG emissions reductions are not available.
Built Environment Deep Lake Water Cooling (DLWC)

Presently, the impact of DLWC on GHGs is estimated to be the elimination of 145 tonnes of nitrogen oxide and 318 tonnes of sulfur oxide (Enwave, 2013). Additional benefits from this project include the following:

  • the reduction in electricity use by up to 90% compared with conventional air conditioning; elimination of 79,000 tonnes of carbon dioxide annually
  • elimination of 45,000 kg of polluting chlorofluorocarbon (CFC) refrigerants
  • provides fresh, potable lake water to taps across Toronto
Integrated Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Technologies for Supermarkets

The projects were expected to substantially reduce the participating supermarket’s GHG emissions and other environmental indicators. For example, the Scarborough demonstration project was expected to result in “20% reduction in energy consumption, 95% reduction in refrigerant leaks, and 50% reduction in GHGs emission compared to conventional supermarkets” (Loblaw, n.d.).

The previous case study and project reports indicate that the projects did indeed reduce GHG emissions and result in other positive environmental effects on the demonstration sites. In particular, the previous case study indicates that, for the Repentigny and Barhaven projects, GHG savings include 11% for refrigeration, and 87% for space heating, resulting in an overall reduction of 23%. Total GHG emissions from all sources were reduced by 48% and the emissions from HVAC&R were reduced by 76% (Goss Gilroy Inc., n.d.).

Some project representatives interviewed as part of the current case study provided further support to these claims, noting that energy savings illustrated on the demonstration sites varied between 25-50% and GHG emissions savings were between 50-80%. Other interviewees indicated that the aim was a reduction GHG emissions by 80%, which was achieved in the stores that were part of the projects described in this case study.
CTS Lightweight Thermal Management Systems for Turbocharger Technologies The goal of the Turbocharging Technologies project was to incorporate lightweight materials into turbocharger components. Both light weighting and turbocharging technologies can improve vehicle efficiency and reduce GHG emissions over existing technologies. The project is at the bench-scale, R&D phase, and the production of cleaner transportation systems (new turbochargers) has yet to be achieved. An interviewee indicated that since the technology derived from the lightweight alloy research has not yet been commercialized — and further work on the follow-up heat exchanger technology project is still underway — the impact on GHG emissions has not materialized.
High Pressure Compressed Hydrogen Fuelling System This project had the potential to impact GHG emissions, based on products developed from its findings. This impact would have been the result of the use of lower cost, high-pressure hydrogen fuelling systems that would facilitate the deployment of high pressure on board storage tanks as a means to improve the range of fuel cell vehicles. In addition, the compressor and system would also have had applications to other gases, such as natural gas, making existing compression technologies more efficient. However, since the project did not reach its objectives and did not proceed beyond the component prototype stage, it has been abandoned by the proponent, and no impact on GHG emissions has occurred.

Appendix H - GHG EMISSION REDUCTIONS PARTIALLY ATTRIBUTABLE TO GOC/NRCAN/IETS ENERGY S&T PROGRAMS TO 2030

Table 1:  Direct -partially Attributable to IETS/GoC Programs (Domestic and International)
  2012-13
and prior		 2014-15 2015-16 2016-17 2019-20
Direct -partially attributable to IETS/GoC Programs - Canada Domestic
PERD - CTS Evaluation - CLiMRI program 4,132 4,132 4,132 4,132 4,132
TEAM - 32 projects with PMP (excl. projects below) 215,641 215,641 215,641 215,641 215,641
TEAM - Biox Corp. 139,276 139,276 139,276 139,276 139,276
TEAM - Canadian Solar Inc. 250,000 638,000 638,000 638,000 638,000
TEAM - CIMCO Refrigeration 70,000 70,000 70,000 70,000 70,000
TEAM - Enwave Deep Lake Cooling 79,000 79,000 79,000 79,000 79,000
ecoETI - Husky 100,000 100,000 100,000 100,000 100,000
Budget 2008 - SaskPower Boundary Dam Integrated CCS Project N/A N/A 1,000,000 1,000,000 1,000,000
CEF - Shell Quest CCS project N/A N/A 250,000 1,000,000 1,000,000
CEF - Enhance Alberta Carbon Trunk Line N/A N/A N/A N/A 1,800,000
GHG emission reductions (t/yr) -   DOMESTIC 858,049 1,246,049 2,496,049 3,246,049 5,046,049
Direct - partically attributable to IETS/GoC Programs - International
TEAM -  Canadian Solar Inc. - conservative assumptions (no growth vs 2014-15) 6,202,656 10,665,713 10,665,713 10,665,713 10,665,715
TOTAL DIRECT - GHG emission reductions (t/yr) 7,060,705 11,911,762 13,161,762 13,911,762 15,711,764

 

Table 2:  Indirect -partially Attributable to IETS/GoC Programs
  2012-2013
and prior		 2014-15 2015-16 2016-17
Indirect-  partially attributable to IETS/GoC Programs
PERD/ecoETI - IEA GHG Weyburn Midale CCS/EOR Project - US/Saskatchewan 30,300,000 3,100,000 3,100,000 3,100,000
Solar PV - Canada - conservative assumptions (no growth vs 2013-14) N/A 834,000 834,000 834,000
Wind - Canada - conservative assumptions (no growth vs 2013-14) N/A 2,996,327 2,996,327 2,996,327
TOTAL INDIRECT - GHG emission reductions (t/yr) - DOMESTIC N/A 6,930,327 6,930,327 6,930,327

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