1. Bio-Industrial Development: Growing Biomass Growing Opportunities Growing Municipalities April 10 th, 2014 Jeff Bell Industry Development Officer, Clean Energy and Biorefining Alberta Agriculture and Rural Development jeff.bell@gov.ab.ca

2. Bio-Industrial Opportunities Branch 2 About UsThe OpportunityWhy Alberta? 2

3. Source: Bridge 2020- http://bridge2020.eu/our-work/ 3 About UsThe OpportunityWhy Alberta?

4. Heat: Strathcona, Camrose Biodiesel: Kyoto, ADM, Olds College Ethanol: Permolex, Enerkem, Highmark Biogas: Lethbridge Biogas, Highmark Current Situation- Bioenergy 4 About UsThe OpportunityWhy Alberta?

5. Synermulch (Calgary) Stemia (Chin) Canadian Greenfield Technologies (Calgary) TTS / Biocomposites Group (Drayton Valley) Hart Fibre Trading (Leduc) Barr Ag (Olds) Current Situation - Biomaterials 5 About UsThe OpportunityWhy Alberta?

6. Ceapro Inc. (Leduc) Botaneco/Concept Capital Management (Calgary) Radient Technologies (Edmonton) AlPac (Boyle) Current Situation- Biochemicals 2-Propanol OH 6 About UsThe OpportunityWhy Alberta?

7. Lethbridge Biogas Lethbridge, Alberta Waste treatment Waste diversion Biogas Electricity Heat Fertilizer 7 About UsThe OpportunityWhy Alberta? Example- Biorefining

8. Kyoto biofuels Lethbridge, Alberta Biodiesel Glycerin 8 About UsThe OpportunityWhy Alberta? Example- Biorefining

9. 9 Northwest Bioenergy Unity, Saskatchewan Farmer owned Grain terminal Transloading Ethanol Industrial alcohols Animal feed Electricity / heat About UsThe OpportunityWhy Alberta? 9 Example- Biorefining

10. Highmark Renewables Two Hills, Alberta Example- Biorefining 10 About UsThe OpportunityWhy Alberta?

11. Wood Biomass Project Camrose, Alberta Waste water treatment Energy Example: Multiple Values 11 About UsThe OpportunityWhy Alberta?

12. 12 Example: Fibre processing $30M proposed processing and manufacturing facility in Lethbridge/Taber Public – private partnership Market development and technology support Building Industry critical mass Value chain development Stemia Fibre Processing Chin, Alberta About UsThe OpportunityWhy Alberta? 12

13. 13 Example: Bio-cluster Biohybrid Chemistry Cluster Sarnia-Lambton, Ontario, Canada Ethanol Cellulosic Ethanol Biodiesel Biogas Greenhouses Renewable Chemicals Biosuccinic Acid Research facilities Business incubator About UsThe OpportunityWhy Alberta? 13

14. Example: Bio-cluster  Oil seed crushing  Bio-fuel blending  Bio-fuel transloading and logistics  Bio-chemicals  Carbon capture  Hydrogen  Waste heat  Greenhouses  Bio-fuel manufacturing  Bio-plastics and resins  Construction materials  Renewable natural gas  etc. Alberta Industrial Heartland, Edmonton, Alberta, Canada 14 About UsThe OpportunityWhy Alberta?

15. Strathcona District Heating Plant Sherwood Park, Alberta Example: Co-siting (Buildings) 9MW Natural gas heat 1MW bio heat Wood waste Agricultural pellets 15 About UsThe OpportunityWhy Alberta?

16. Example: Co-siting (Oil Refinery) 16 Shell's Pernis oil refinery Rotterdam, The Netherlands Heat and CO 2 Reduced emissions and additional revenue for industry partners 95 million m 3 of natural gas saved annually 580 greenhouses ~1,900 hectares ~400,000 tons CO 2 diverted per year About UsThe OpportunityWhy Alberta? 16

17. Between now and 2022 it is expected more than $170 billion will be invested in new bio-refineries Biofuels already account for 3% of total global fuel Biofuels market will double to $185 billion Bio-based chemicals will grow to $12 billion Alberta is blessed with abundant resources including agriculture and forestry biomasss, a perfect foundation on which to build a world-class bioenconomy. Why Alberta? Growth Market 17 About UsThe OpportunityWhy Alberta?

18. Arable land per capita (hectares) 8.5 million hectares arable land 11+ million hectares pasture/forage Abundant: Crops (Wheat, canola, barley, etc) Straw Manure Why Alberta? – Agricultural Feedstocks 18 About UsThe OpportunityWhy Alberta?

19. Forested land per capita (hectares) 38 million hectares forested land Abundant: Hardwood Softwood Logging residues Wood waste Why Alberta? – Forestry Feedstocks 19 About UsThe OpportunityWhy Alberta?

20. Additional Resources 20 About UsThe OpportunityWhy Alberta? Alberta Biomaterials Development Center: www.albertabiomaterials.com Bio-Based Chemicals Initiative www.agriculture.alberta.ca/biobasedchemicals Small-scale Biomass District Heating Handbook www.communityenergy.bc.ca

22. Why Alberta? – Business friendly environment – Thriving economy – An Innovative and diversified economic base – Diverse population – Young population – Entrepreneurial spirit – Thriving small business sector – Strong labour market – Highly skilled labor force – Highly educated population – Advanced research facilities (including bioenergy) – Competitive taxes – Well developed infrastructure – Strategic location – Abundant agricultural feedstocks – Abundant forestry feedstocks – Supportive policy environment for bio-innovation 22 About UsThe OpportunityWhy Alberta?

23. Consumer Demand Superior Performance Environmental Pressures Improving Economics Why Alberta? Growth Market 23 About UsThe OpportunityWhy Alberta?

24. Alberta Bioenergy Opportunities  Renewable Gasoline Ethanol Methanol Butanol Green gasoline  Renewable Diesel FAME HDRD  Biocrude  Bio-coal  Biogas  Renewable Natural Gas  Syngas  Energy Pellets Straw Waste etc.  Renewable Chemicals for the Oil Patch Drilling fluids Surfactants Solvents 24 About UsThe OpportunityWhy Alberta?

25. Alberta Biomaterials Opportunities Fibre processing Biocomposites Building products Textiles Automotive parts Reclamation / erosion control www.albertabiomaterials.com 25 About UsThe OpportunityWhy Alberta?

26. Alberta Biochemicals Opportunities Specialty Chemical / High Value Ingredients Cosmetic and Personal Care Functions  Anti-microbial/Anti-inflammatory/Anti- irritant/Anti-oxidant  Preservative  Solvents  Emulsions/surfactants  SPF Boosters  Thickeners  Silicone replacements/styling resins Biorefining sidestreams  As intermediates for other ingredients Industrial and Household Cleaning  Surfactants/detergents Perfume/Fragrance Pharmaceutical/Nutraceutical Food and Feed Industrial Bio-Based Chemicals Renewable Chemicals for the Oil Patch  Drilling muds  Surfactants  Solvents  De-icers  Rust inhibitors Industrial Chemicals  Solvents  Coatings 26 About UsBioenergyBiomaterialsBiochemicalsWhy Alberta?

27. Why Alberta? – Policy & Programs 2006 Nine Point Bioenergy Plan Specified Gas Emitters Regulation Offset protocols Climate Change Emission Management Corporation Grant Programs BCMDP/BIDP Climate Change Emission Management Fund Bioenergy Producer Credit Renewable Fuels Standard Bioenergy Research and Development Alberta Biomaterials Development Center 27 About UsBioenergyBiomaterialsBiochemicalsWhy Alberta?

28. 28 Example: Bio-cluster  Traditional sawmill products  Bio-electricity  Fibre matting plant  Car parts  Building products  Plastics and resins  Building insulation  Synthetic natural gas  Renewable transportation fuels  Cellulosic fuels  Bio-based consumer chemicals  Bio-based industrial chemicals  Bio-coal/Bio-char demonstration plant  Pellet plant (wood or bio-coal)  Research and development  Waste to energy plant Biomile, Drayton Valley, Alberta, Canada 28 About UsBioenergyBiomaterialsBiochemicalsWhy Alberta?

29. Example: Co-siting (Coal Plant) 29 SaskPower Shand Greenhouse Estevan, Saskatchewan 0.4 acres greenhouse heat from nearby 280 MW coal plant Native plants distributed free to conservation groups Educational tours for students About UsThe OpportunityWhy Alberta? 29

30. Example: Bio-refining HEAT ELECTRICITY Permolex Red Deer, Alberta 30 About UsThe OpportunityWhy Alberta?

31. Example: Multiple Values Enerkem Waste to Fuel Facility Edmonton, Alberta Increases landfill diversion from 60% to ~90% MSW > syngas: Methanol Ethanol 31 About UsThe OpportunityWhy Alberta?

32. 32 Example: Biocomposites Makes light weight mats, fibreglass replacements, auto parts and construction materials made from hemp, flax and wood fibre.