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Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act - 2003-2004

Chapter 7: Transportation

Energy Use and Greenhouse Gas Emissions

The transportation sector consists of three sub-sectors: passenger, freight and off-road. Passenger and freight transportation accounted for 56.7 percent and 39.3 percent, respectively, of transportation energy use, with off-road representing only 4.0 percent in 2002. The passenger sub-sector is composed of three modes: road, rail and air. The freight sub-sector, as defined by Natural Resources Canada (NRCan), is composed of road, rail, air and marine. Road transport uses the most energy, accounting for 78.1 percent of total transportation energy use in 2002. Of this amount, 60.5 percent was passenger energy use and 39.5 percent was freight energy use (see Figure 7-1).

All NRCan transportation energy-use programs focus on the energy used in road transportation. Total transportation energy use increased by 22.8 percent (428 petajoules) over 1990 to 2002 (see Figure 7-2). Passenger transportation energy use increased by 13.0 percent (150 petajoules), while freight transportation energy use increased by 36.0 percent (240 petajoules).

Three main factors influenced energy use:

• activity – due to increases in population and economic activity, there was greater transportation activity (measured as passenger-kilometres for passenger transportation and tonne-kilometres [tkm] for freight transportation). This increased transportation energy use by 23.1 percent (412 petajoules). The freight and passenger segments contributed to this increase by 57.7 percent and 42.3 percent, respectively.
• structure – shifts between modes of transport were significant in passenger (sharp increase in the stock of light trucks) and freight (freight trucks are growing significantly faster than rail and marine) segments, resulting in an increase of 9.3 percent in transportation energy use (165 petajoules).
• energy efficiency – improvements in energy efficiency worked to decrease energy use by 9.9 percent (178 petajoules).

Without improvements in energy efficiency, increases attributable to activity and structure would have led to an increase in transportation energy use of 32.4 percent (577 petajoules). However, as a result of improvements in energy efficiency, actual energy use increased by 22.8 percent. This change in energy use between 1990 and 2002, as well as the estimated energy savings due to energy efficiency, is shown in Figure 7-2.

The transportation sector accounts for 28.1 percent (2306 petajoules) of secondary energy use and 34.2 percent (165 megatonnes) of greenhouse gas (GHG) emissions. From 1990 to 2002, transportation energy use increased by 22.8 percent, and GHG emissions increased by 22.1 percent. The change in GHG intensity of transportation energy use was negligible.

Figure 7-3 shows how the market share of new light trucks increased in the 1990s, reflecting the growth in popularity of minivans and sport-utility vehicles. Figure 7-4 demonstrates that, on a per-kilogram or per-unit-of-horsepower basis, fuel efficiency has improved markedly. However, average fuel economy has been stable because new vehicles continue to be heavier and have more powerful engines.

Figure 7-5 illustrates an improvement in trucking energy intensity despite an increase in average activity over 1990 to 2002. Improved fleet practices, caused by an increase in the competitiveness of the transportation sector and by the introduction of electronic engines, have significantly improved engine fuel efficiency in medium-duty and heavy-duty trucks.

NRCan delivers initiatives in the following areas to increase the efficiency of motor vehicles and encourage the use of alternative fuels:

• vehicles
• transportation research and development
• alternative transportation fuels
• transportation technologies.

Vehicles: Vehicle Efficiency

Objective: To improve the fuel efficiency of new light-duty vehicles sold in Canada.

The Motor Vehicle Fuel Efficiency Initiative is intended to bring about a 25 percent improvement in the fuel efficiency of new light-duty vehicles sold in Canada by 2010. NRCan is leading negotiations with the automotive industry to reach agreement on a voluntary fuel efficiency target for new vehicles. GHG reductions of 5.2 megatonnes in 2010 are being sought.

Key 2003-2004 Achievements

• Completed a joint study between NRCan and U.S. Department of Energy on the future potential of hybrid and diesel powertrains in the North American light-duty vehicle market.
• Completed round of discussions with auto industry regarding fuel efficiency targets.

For more information:
oee.nrcan.gc.ca/transportation/fuels/motorvehicles.cfm

Vehicles: Personal Vehicles

Objective: To improve motor vehicle fuel efficiency by encouraging private motorists to develop energy-efficient vehicle purchase, use and maintenance practices.

The Personal Vehicle information program promotes improving vehicle fuel efficiency in order to reduce vehicle emissions and mitigate other vehicle-related environmental impacts. The program helps motorists understand how automobile purchases and driving and maintenance habits affect climate change and the environment. It encourages Canadians to purchase the most fuel-efficient vehicle that meets their everyday needs and to adopt fuel-efficient driving techniques and maintenance practices.

Key components include the EnerGuide fuel-consumption label for vehicles and the annual Fuel Consumption Guide, which provide fuel consumption data for new light-duty vehicles; the Idle-Free Campaign, which seeks to curb vehicle idling; and the Auto$mart Driver Education Kit, which helps driving instructors teach fuel-efficient driving to novice drivers. Recently the initiative developed a national public awareness and education campaign, in collaboration with the tire manufacturing industry, to encourage Canadian motorists to adopt good tire maintenance and inflation practices.

Key 2003-2004 Achievements

• Successfully completed the Idle-Free Campaign in Calgary, Edmonton, the Greater Toronto Area, Caledon, Ottawa, Sherbrooke and Québec City.
• Tire inflation campaign developed and launched.
• Recruited one new manufacturer for the EnerGuide label for vehicles.

For more information:
oee.nrcan.gc.ca/vehicles

Vehicles: Fleet Vehicles

Objective: To improve motor vehicle fuel efficiency by encouraging private motorists to develop energy-efficient vehicle purchase, use and maintenance practices.

Fleet Vehicles provides information materials, workshops, technical demonstrations, driver training programs and special projects, such as the Truck Stop Idle-Free/Quiet Zone Campaign, to help fleet operators assess and pursue opportunities to increase energy efficiency in their operations. To increase market penetration of fuel-efficient and emission-reduction technologies, the Fleet Vehicles initiative also provides financial incentives to commercial fleets purchasing pre-selected anti-idling technologies and Natural Gas Vehicle technologies. NRCan delivers the Fleet Vehicles initiative in partnership with fleets, industry stakeholders and other levels of government.

Key 2003-2004 Achievements

• The SmartDriver workshops trained more than 160 000 new and experienced drivers and introduced over 700 new instructors to the SmartDriver materials.
• Three anti-idling technologies have been certified under the Commercial Transportation Energy Efficiency Rebate (CTEER) initiative.
• Provided over $850,000 in incentives through the CTEER initiative.

For more information:
fleetsmart.nrcan.gc.ca

Transportation Research and Development: Canadian Lightweight Materials Research Initiative (CLiMRI)

Objective: To develop low-density, high-strength, lightweight materials to achieve weight reductions in ground transportation vehicles.

CLiMRI is a research network comprising twenty-nine companies, eight universities and seven government departments and funding agencies. CLiMRI's goal is to develop and implement lightweight and high-strength materials in transportation applications for the purposes of (a) reducing GHG emissions through vehicle weight reduction and improving vehicle efficiency, and (b) improving the competitive performance of Canadian primary metals producers, automotive part manufacturers and suppliers.

Key 2003-2004 Achievements

• Magnesium is one of the lightest of all metals, but its use in automotive applications is currently limited to die-cast parts because of difficulties in producing magnesium in sheet form. CANMET Materials Technology Laboratory (CANMET-MTL) has developed a moving plate to simulate the twin-roll strip casting of magnesium sheets, and the material's performance is being assessed. This achievement shows significant potential for increasing the use of magnesium in the automotive industry.
• Unlike aluminum, magnesium is prone to corrosion in the presence of chlorides such as road de-icing salt. Corrosion control is therefore a key enabling technology that will lead to wider-scale application of magnesium in automobiles. As part of a large program with the U.S. Department of Energy and car makers, CANMET-MTL is leading the corrosion control and coating assessment research for magnesium alloys. Environmentally friendly coatings have been selected, and a new candidate material developed for use as spacers and washers. The team also contributed to the redesign of a magnesium engine cradle for General Motors Corporation's Corvette.
• Recent developments in hydroforming, a metal-shaping process that uses gas or water at high pressures to form tubes or sheet metal, have enabled significant productivity gains and weight reductions for complex structural components in the automotive industry. In the last year, CANMET-MTL fabricated aluminum and high-strength steel tubes and optimized welding parameters. Testing trials confirmed the validity of laboratory tests for predicting the integrity of aluminum hydro-formed seam-welded tubes.

For more information:
CLiMRI.nrcan.gc.ca/default_e.htm

Transportation Research and Development: Fuel-Cell-Powered Mining Vehicles

Objective: To develop the technology to replace diesel power by hydrogen fuel cell power in underground mining vehicles.

NRCan has taken a co-leadership role in the North American Consortium for Fuel-Cell-Powered Mining Vehicles. Hydrogen fuel cell power systems are twice as efficient in delivering power as conventional diesel equipment. Retrofitting diesel-powered vehicles with hydrogen fuel cells improves vehicle productivity, operating costs and the work environment for underground miners by eliminating toxic underground diesel emissions and by reducing heat and noise. Fuel cells have also been shown to have the potential to significantly reduce carbon dioxide (CO₂) or GHG emissions by up to one million tonnes per year (26 percent of the total CO₂ emitted by the mining extraction sector) and decrease operating costs by lowering mine ventilation needs by 20 to 40 percent, depending on the mine.

Key 2003-2004 Achievements

• The fuel cell locomotive is now at the experimental mine in Val-d'Or, Quebec, undergoing long-term reliability testing of the fuel cell power plant. Tests are being carried out to quantify power delivery, hydrogen consumption, risk quantification and refuelling aspects.
• Assembled partners and initiated the fuel cell underground mine loader project (the main production vehicle). The loader power plant has been designed and full vehicle testing will start in 2005.
• Initiated a light-duty mining vehicle project, representing the most polluting of underground diesel mining vehicles. It will be the focus of an all-Canadian partnership for commercialization initiative.
• Addressed mine regulatory issues in several new projects and partnership discussions to have fuel cells in operation in underground Canadian mines.
• Continued technology transfer made through a special session of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2003 Annual General Meeting, two publications in the CIM Bulletin, one article in the Journal of Power Sciences, and an article in the 2003 Canadian Computer Application to the Mineral Industry Conference proceedings.

For more information:
nrcan.gc.ca/mms/canmet-mtb/mmsl-lmsm/mines/mines-e.htm

Alternative Transportation Fuels: Future Fuels Initiative

Objective: To increase Canada's fuel ethanol production and use in the transportation sector.

The Future Fuels Initiative, co-managed with Agriculture and Agri-Food Canada, targets end-users of gasoline, provinces and territories, and existing and potential fuel ethanol producers. The Future Fuels Initiative aims to increase the supply and use of fuel ethanol produced from biomass such as plant fibre, corn, wheat and other grains. The main components of this initiative are public education and analysis of socio-economic and GHG emission impacts. Additionally, the Future Fuels Initiative includes the National Biomass Ethanol Program, administered by Farm Credit Canada, which aims to overcome lender resistance to investing in ethanol plants due to the uncertainty of future excise tax policy.

Key 2003-2004 Achievements

• Completed an ethanol-blended gasoline awareness campaign in fall 2003 in partnership with fuel retailers in Ontario and Quebec.
• Completed a national ethanol awareness survey: results show that 85 percent of Canadians are in favour of increased ethanol-blended gasoline use in Canada (Ipsos-Reid, March 2004).
• Extended GHG emission and energy use modelling capabilities.

For more information:
www.vehiclefuels.gc.ca

Alternative Transportation Fuels: Ethanol Expansion Program

Objective: To expand fuel ethanol production and use in Canada.

The Ethanol Expansion Program, co-managed with Agriculture and Agri-Food Canada, targets existing and potential fuel ethanol producers. The program provides contributions to new or expanded fuel ethanol production facilities through a competitive solicitation process. Selection criteria are based on the ability to maximize ethanol production and use in Canada and the ability to reduce transportation GHG emissions. Additionally, the program is investigating the range of programs that could be used to develop a successful commercial cellulose-based ethanol industry in Canada (i.e. ethanol produced from agricultural residues or wood).

Key 2003-2004 Achievements

• Completed the proposal selection process for the first round of funding and allocated contributions to seven projects from across Canada that plan to increase domestic ethanol production by a total of 750 million litres per year.
• Engaged in extensive discussions with cellulosic ethanol industry proponents.

For more information:
www.vehiclefuels.gc.ca

Alternative Transportation Fuels: Biodiesel Initiative

Objective: To support increased biodiesel production and use in Canada's transportation sector.

The Biodiesel Initiative supports the Government of Canada's proposed target of 500 million litres of biodiesel production per year by 2010. The main components of this initiative are research and development, technical and socio-economic studies, end-use demonstrations and testing, stakeholder education and standards development.

Key 2003-2004 Achievements

• Commissioned long-haul commercial transport, marine and fleet vehicle end-use technology demonstration projects.
• A biofuels quality registry was established with the Alberta Research Council – a centre of excellence in this field – to set an industry protocol and standard for fuel analysis.
• Formation of an international cooperated effort to conduct a biosafety assessment on the use of animal fats in biodiesel.
• Ongoing technical and economic assessments of biodiesel production including feedstocks, production processes and use of the biofuel.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Canadian Transportation Fuel Cell Alliance

Objective: To demonstrate and evaluate different processes for the production and delivery of hydrogen to fuel cell vehicles at fuelling stations and to participate in the development of codes and standards.

The Canadian Transportation Fuel Cell Alliance (CTFCA) is a private-public sector initiative composed of technology developers, fuel providers, auto manufacturers, federal and provincial/territorial governments, academia and non-governmental organization representatives. The CTFCA's work contributes to a reduction in GHG emissions by encouraging advancements in hydrogen and fuel cell technologies through demonstration projects that evaluate the technical, economic and environmental feasibility of different hydrogen fuelling options for fuel cell vehicles. The initiative also establishes a supporting framework for hydrogen fuelling by assisting in the development of codes and standards as well as certification and training programs.

Key 2003-2004 Achievements

• Commissioned prototype fuelling station and upgraded operating fuelling stations.
• Ongoing codes and standards activities at a national and international level and produced draft hydrogen installation code for Canada.
• Assessment and evaluation of fuelling pathways is ongoing and several studies are underway or completed.

For more information:
nrcan.gc.ca/es/etb/ctfca/index.html

Alternative Transportation Fuels: Hydrogen Economy and Transportation Energy Program

Objective: In partnership with industry, to develop and deploy leading-edge hydrogen and transportation technologies that reduce GHG emissions, minimize other environmental impacts, increase the potential for job and economic growth and extend the life span of Canada's energy resource base.

Program staff work with stakeholders in the domestic and international hydrogen and transportation industries, including original equipment manufacturers, industry associations, fleet managers, transit authorities, utilities, provincial and territorial governments, research organizations, universities, other federal departments, the U.S. Department of Energy and the International Energy Agency.

Highlights of the Hydrogen Economy and Transportation Energy Program's work include:

• Supporting Canadian industry in developing a world-leading water electrolysis technology for the production of hydrogen from clean renewable energy sources.
• Working in partnership with Canada's fuel cell industry over the last 15 years, which has established Canada as a world leader in fuel cell and refuelling technologies; for example, the world's first hydrogen fuel cell bus was demonstrated in Canada.
• Supporting student vehicle challenges since the 1980s, and bringing university and college students from across North America together with automotive manufacturers to modify existing vehicles to run on a variety of alternative fuels. The program has also supported the development of alternative transportation fuel technologies, for example, for natural gas and propane vehicles, which has led to a Canadian industry that is now exporting commercial products.

Key 2003-2004 Achievements

• Organization and sponsorship of world-class conferences, including the 2003 Canadian Hydrogen and Fuel Cells Conference and Trade Show.
• Demonstration of a 10-kilowatt fuel cell power module, suitable for off-road mobility applications, in a vehicle.
• A 5000-psi (pounds per square inch) hydrogen storage cylinder was certified, and 300 of these cylinders were sold.
• Two companies licensed and commercializing natural gas engine control systems developed by the Saskatchewan Research Council.

For more information:
nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/programs_tet_e.html