Pollution Probe Workshop

1. Paul Wieringa Executive Director Alternative Energy Ministry of Energy and Mines Pollution Probe Workshop

2. BC Energy Volume • By energy content. • Primarily natural gas (75% exported) and coal (100% exported). • Electricity is relatively small sector.

3. 38% Industrial The BC Energy Plan “Encourage industry-driven investments in energy efficient technologies and processes”

4. Energy Consumption Statistics for BC

5. BC’s sources of electricity • Generation in 2008: 58,165 GWh • Generation has remained relatively stable between 2002 and 2008. • Over 90% of generation in British Columbia comes from clean and renewable resources

6. Competitive Rates • Rates are set to recover costs • 2nd to 7thlowest, depending on customer type • Residential bills less competitive at higher consumption with inclining block conservation rate

7. Oil and Gas in B.C. • Canada’s second largest natural gas producer. • More than 75% of natural gas production is destined for the export market. • More than 16,000 miles of natural gas and petroleum gathering and transmission pipelines that link the province to North American markets. • Opening up new markets: Liquefied Natural Gas (LNG) export plant planned to be in service by 2014.

8. B.C.’s Natural Gas Resources • Conventional Resources • 91 Tcf GIP estimate • Shift to unconventional resources • Tight Gas = >300 Tcf GIP estimate • CBM = >90 Tcf GIP estimate • Shale Gas = >500 Tcf GIP estimate • Three world-class shale gas plays: • Montney • Horn River • Cordova Embayment

9. B.C.’s Natural Gas Supply & Demand • B.C. produces about one trillion cubic feet (Tcf) of natural gas per year. • B.C. only consumes about 20% of its natural gas production. • Rest is sent to other Canadian provinces – mainly our neighbouring Alberta – and exported to the United States. • Shale gas presents the opportunity to triple production in the next few years, consolidating B.C.’s role in North America’s natural gas markets.

10. Oil and Gas Production and Consumption Stats:

13. Clean Energy Act: Goals • Ensuring electricity self sufficiency at low rates • Harnessing BC’s clean power potential to create jobs in every region • Strengthening environmental stewardship and reducing greenhouse gases

14. BC’s Energy Objectives • Electricity self-sufficiency • Increased goals for conservation and % of electricity from clean and renewable sources • Ensure BC ratepayers continue to benefit from the Heritage Assets • Meet BC’s greenhouse gas reduction targets • Pursue switching to lower emission energy sources • Encourage First Nation and rural communities to reduce greenhouse gas emissions, use energy efficiently, and develop clean or renewable resources • Economic development and job creation • Become a net electricity exporter

15. Exporting Clean Electricity • Consistent with objectives to become net exporter and to reduce regional GHG emissions. • Calls to acquire electricity for export will occur only if Government determines it is in the Province’s interest – e.g. having secured a favourable long-term sales contract. • BC Hydro will assume “aggregator” role. • Domestic ratepayers will not subsidize exports • Cost of electricity and transmission capacity for export will not be paid for by ratepayers. • Ratepayers will get benefit of Heritage Assets.

16. Provincial Policy Drivers • Climate Action Plan : • Revenue neutral carbon tax, Western Climate Initiative (WCI), carbon neutral government, renewable fuel requirement, low carbon fuel requirement, green building code, efficiency standards • BC Energy Plan and Clean Energy Act: • 93% electricity from clean energy, offset natural gas, CCS for coal, energy self sufficiency by 2016, 2/3 of new incremental supply from energy efficiency and conservation

17. Energy Equation E = mc2

18. Energy Efficiency Equation E2 = mc Energy Efficiency = Management Commitment

19. BC ENERGY FLOW – 40% of Industrial Energy is Lost BC Industrial Energy Use • Lost industrial energy = 193.5 = 39% Loss Total industrial energy use 494.6 Only 61% efficient!

20. Why Renewables? • Lower environmental impact than other sources of energy • GHG Emissions • Land Use • Air Quality • Abundant resources in BC • Markets for clean energy in nearby jurisdictions

21. Challenges of Renewable Energy Development • Higher cost • Lower energy density • Intermittency • Short term • Seasonal • Unproven technologies • Remote locations

22. Wind Energy Resources

23. Ocean Energy Resources

24. Solar Energy Resources

25. Geothermal Resources

26. Bioenergy Policies • Bioenergy Strategy • Bioenergy Call for Power • Phase 1 completed in 2008 • Phase 2 short list announced • Large project stream • Community project stream

27. Bioenergy Sector • Over 800 MW Electricity Generation • Over 1M Tonnes of wood pellet production • Leading gasification and biorefining technology • Bioenergy Network • $25 million fund • Support projects • and research • Over $6M invested • to date

28. Why are hydrogen and fuel cells important to BC? Economy: - innovation-based jobs in a sunrise industry - foreign investment in Canada - exports to a growing global economy Environment: reduced GHGs and improved air quality Energy: clean, efficient electricity located close to demand Technology: Made in Canada science and innovation

29. Hydrogen Fuel Cell Vehicle Development • Automotive Fuel Cell Cooperation Inc (AFCC) is Daimler and Ford’s JV in Vancouver working on their generation III fuel cell vehicle. Employing 225 people, AFCC is the largest automaker R&D centre in Canada. • The Vancouver Fuel Cell Vehicle Program operates 5 Ford Fuel Cell Electric Vehicles in the Metro Vancouver area. The City of Surrey now operates one of the vehicles along with a fuelling station. • Other major auto manufacturers have approached B.C. to deploy their vehicles first in B.C. ahead of other jurisdictions.

30. Conclusion • As British Columbia develops its natural resources in an environmentally responsible way we can: • Attract investment that drives economic development and job creation • Reduce greenhouse gas emissions in BC, and through exports, other jurisdictions • While doing this we maintain a focus in increasing energy efficiency and productivity, as well as ensuring our rates are competitive.