Home
	Databases
	NEUD Publications
	Data & Analysis Centres
	Glossary

Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2004-2005

Chapter 5: Industry

Energy Use and Greenhouse Gas Emmissions

The industrial sector includes all manufacturing industries, all mining activities, forestry and construction; however, it excludes electricity generation. This sector uses energy in industrial processes as a source of motive power to produce heat or to generate steam. Overall, industrial energy demand accounts for 38.4 percent (3246 petajoules) of secondary energy use and 33.7 percent (169 megatonnes) of greenhouse gas (GHG) emissions (including electricity-related emissions).

Within the industrial sector, energy is consumed primarily in pulp and paper, mining, petroleum refining, and smelting and refining industries. Pulp and paper alone accounted for about 26.2 percent of total industrial energy demand in 2003 (see Figure 5-1).

In most industries, energy purchases account for only a small proportion of total expenditures. However, for some relatively energy-intensive industries – cement, chemicals, and pulp and paper – this share is higher than 13 percent (see Figure 5-2). For cement, in particular, the share is as high as 38 percent.

Actual industrial energy use increased by 19.4 percent (528 petajoules) between 1990 and 2003. This increase was driven by a 44.5 percent increase in industrial activity, measured as a combination of physical units of production, gross output and gross domestic product (GDP). However, some of this increase in energy use that would have resulted from the increase in activity was offset by improvements in energy efficiency and structural change – the shift to less energy-intensive industries (such as electrical and electronics).

Three main factors influenced energy use:

• activity – increases in physical units of production, gross output and GDP contributed to a 44.5 percent increase in industrial activity resulting in a 1210-petajoule increase in energy use.
• structure – the change in the mix of activity toward less energy-intensive industries resulted in a 338-petajoule decrease in energy use.
• energy efficiency – due to a 12.6 percent improvement in energy efficiency, the industrial sector avoided 344 petajoules of energy use between 1990 and 2003.

The change in energy use between 1990 and 2003 and the estimated energy savings due to energy efficiency are shown in Figure 5-3.

Between 1990 and 2003, industrial GHG emissions including electricity-related emissions increased by 19.2 percent. Excluding electricity-related emissions, industrial GHG emissions increased by 10.6 percent over the same period. Most of this increase in direct GHGs occurred in the upstream mining industry, since the mining (excluding upstream), manufacturing and construction industries realized a 4.4 percent decrease in GHG emissions.

Natural Resources Canada (NRCan) delivers initiatives to increase energy efficiency in the following components of the industrial sector:

• industrial processes and technologies
• equipment (refer to Chapter 2)
• buildings (refer to Chapter 4)

Industrial Processes and Technologies: Industrial Energy Efficiency

(Canadian Industry Program for Energy Conservation [CIPEC] and Industrial Energy Innovators [IEI])

Objective: To help Canadian industry use energy efficiency investments to improve competitiveness and to contribute to Canada's climate change goals.

CIPEC is a unique industry-government partnership committed to promoting and encouraging energy efficiency improvements and reductions in GHG emissions through voluntary action across Canada’s industrial sectors. CIPEC comprises 26 sector task forces that involve 48 trade associations.

CIPEC, a sector-level program, and IEI, a company-level program, both address barriers to planning, implementing, tracking and reporting energy efficiency projects in industry. Key elements include the establishment and tracking of energy efficiency improvement targets and plans, and the development of products and services that overcome barriers to continued energy efficiency improvements. NRCan provides support via employee awareness kits and events, best-practices guides, technical and planning information, energy audits of varying sophistication, benchmarking and workshops on energy management. Information on industrial cogeneration and on determining the technical eligibilty of energy efficiency projects for the Class 43.1 Accelerated Capital Cost Allowance tax write-off is also available.

CIPEC targets all of industry, including mining, manufacturing and construction as well as upstream oil and gas and electricity generation. In 2003, CIPEC industries contributed $288.6 billion ($97 GDP) to the Canadian economy. This represents 28 percent of Canada’s total GDP ($288,618 / $1,015,974). Of this amount, about 83 percent came from the Manufacturing, Mining and Construction components of CIPEC, and 17 percent came from CIPEC Energy Producers.

Between 1990 and 2003, CIPEC industries improved their energy intensity by 8.7 percent. Had energy intensity remained constant and not declined by 0.7 percent per year, GHG emissions would have been 27.8 megatonnes higher.

The Manufacturing, Mining and Construction components of CIPEC improved their energy intensity by an average of 1.8 percent per year, or 21.4 percent, since 1990. Although CIPEC Energy Producers’ energy intensity has increased by 13.4 percent since 1990, their energy intensity has decreased by 1.4 percent since 2001.

CIPEC Industries avoided approximately $3.4 billion in energy costs in 2003, owing to effective energy management.

Key 2004-2005 Achievements

• Recruited 124 new Industrial Energy Innovators (see Figure 5-5).
• Initiated 137 Industrial Energy Audits.
• Had 1000 industrial participants in Dollars to $ense workshops, almost double the participation in 2003–2004.

For more information:
oee.nrcan.gc.ca/cipec/ieep

Industrial Processes and Technologies: Cleaner Fossil Fuel Power Generation

Objective: To design, develop and deploy technologies for power generation from fossil fuels with increased efficiency and reduction and ultimately elimination of emissions of acid rain precursors, GHGs, particulates and identified priority substances – mercury, trace elements and organic compounds.

Research focuses on improving performance and reducing emissions for existing fossil fuel power plants and on developing new advanced cycles for conversion of fossil fuels to electricity with complete or near complete capture and elimination of carbon dioxide (CO₂) and other emissions. Additional research undertaken includes issues associated with the transport and storage of CO₂.

Key 2004-2005 Achievements

• Developed Canadian technology roadmaps that identify technologies that will be needed for the clean and efficient use of coal with CO₂ capture and storage. Published CO₂ Capture and Storage Roadmap and Canadian Clean Coal Technology Roadmap.
• Commissioned a new pressurized gasifier research pilot plant as part of an advanced clean coal research program. The unit, the only one of its type in North America, will act as an economical test bed for Canadian utilities interested in advanced technology development, hydrogen production and CO₂ capture. Gasification provides high electricity generation efficiency; allows CO₂ capture at low cost and low energy penalty; permits economical, highly efficient removal of sulphur oxide, nitrogen oxide and mercury; and will provide energy security through clean use of Canada’s indigenous coal reserves.
• Successfully demonstrated a new measurement and characterization methodology for PM_2.5 fine particulate matter emissions. Application of Canada-wide standards to large industrial sources in 2010 will require reliable measurement methods. Developed a novel source dilution sampling and fine particulate matter (PM) measurement system for fossil fuel combustion units to provide ambient-compatible data on PM_2.5 emissions as defined by the Canadian and U.S. Ambient Air Standards. The research team received a Departmental Merit Award for this work.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/clean_electric_
power_generation_e.htm

Industrial Processes and Technologies: Processing and Environmental Catalysis Program

Objective: To solve industrial process problems and undertake research in areas with high potential for significant environmental and economic benefits.

The program’s facilities, including semi-pilot-scale plants, are used for process testing and the evaluation of novel concepts in chemical and energy conversion, including hydrogen production from hydrocarbon and renewable sources. Clients include oil and gas companies, petrochemical companies, engine manufacturers, waste oil recyclers and renderers, and specialty ceramic manufacturers.

Key 2004-2005 Achievements

• Developed technology for the production of low-sulphur, high-cetane blending stock from waste restaurant grease and vegetable oils. A royalty-bearing licence agreement for Cetaner technology was signed with North Texas BioEnergy Ltd.
• Developed a catalytic process for producing ethanol from acetic acid. Catalyst testing was done for Woodland Chemicals, a technology development company that has proprietary technology for producing fuel ethanol from biomass residues.
• Developed a direct carbon fuel cell to convert carbon-rich solids to electricity. A 10-watt unit was designed, and a cold flow model was built and tested. A collaborative research agreement is being negotiated with a fuel cell manufacturer in order to facilitate the fuel cell’s development.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/Research%20
Programs/processing_and_environmental_catalysis_e.htm

Industrial Processes and Technologies: Industrial System Optimization Program

Objective: To support the development and adoption of innovative energy-efficient design practices in Canadian industry to improve its energy efficiency and productivity, while decreasing GHG emissions and other environmental impacts.

The program focuses on plant-wide industrial process analysis techniques, such as Process Integration (PI) and advanced process control systems, to identify and correct inefficiencies in plant operation and design taking into account energy, economy and environmental aspects. It seeks to meet its objective by performing leveraged research and development through national and international collaboration. Furthermore, the program disseminates technical information that will encourage the adoption of these practices in targeted energy-intensive sectors of Canadian industry including pulp and paper, oil upgrading and refining, petrochemicals, steel, chemicals, food and drink, and solid wood.

Key 2004-2005 Achievements

• Conducted a successful program to demonstrate the benefits of PI for medium-sized processes in small- and medium-sized enterprises: four plant-wide energy analyses completed in the food and drink and textile industries. Together, these studies allowed the participating companies to identify cost-effective energy- and water-savings projects that can lead to savings of $3 million per year, with an average pay back period of less than two years and CO₂ emission reductions of 14 000 tonnes per year (energy efficiency improvements of 20 to 35 percent).
• Completed an opportunity analysis and technology assessment of sludge upgrading systems for energy production as a viable alternative to land filling in the Canadian pulp and paper mills. The work was coordinated by an advisory committee formed by specialists from major pulp and paper companies, research centres and federal departments. This technological-economic assessment will help industry select the most cost-effective and environmental friendly solutions to reduce the adverse effect of pulp and paper sludge disposal.

For more information:
cetc-varennes.nrcan.gc.ca/en/indus.html

Industrial Processes and Technologies: Industry Energy Research and Development (IERD) Program

Objective: To encourage and support the development and application of leading-edge, energy-efficient and environmentally responsible processes, products, systems and equipment in industry.

Financial support is provided for commercially confidential applied research and development (R&D) activities, which is repayable if the project is commercially successful. Program clients from all industrial sectors range from small- and medium-sized companies to multinational corporations.

Key 2004-2005 Achievements

• Assist Synodon Inc. of Edmonton in developing realSens^TM technology for high-speed aircraft to accurately sense natural gas leaks in pipelines. Currently, five million kilometres of pipelines are regularly tested by inspectors with hand-held sensors. By enabling aircraft to remotely pinpoint minute leaks of natural gas, realSens^TM will reduce inspection costs, increase safety and reliability, and control fugitive emissions of natural gas – a waste of energy and a potent greenhouse gas.
• With the financial support of IERD, Marine Exhaust Solutions Inc. of Prince Edward Island is demonstrating the EcoSilencer^TM, a marine engine exhaust gas scrubber. It removes significant amounts of sulphur dioxide and particulate matter, as well as reduces the noise level from the exhaust, and meets anticipated European Union marine emissions regulations. The unit is amenable to heat recovery for on-board use, thereby reducing energy use and GHG emissions by as much as 10 percent.
• Turbocor Inc. of Montréal is developing a new compressor and refrigeration rack for supermarket counter refrigeration. This refrigerator is designed to reduce energy consumption by 30 percent. Projections show that the energy savings generated worldwide by this technology could attain 28 petajoules per year and associated GHG emission reduction of over 1 million tonnes per year by 2015.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/industrial_
innovation_e.htm

Industrial Processes and Technologies: Emerging Technologies Program (ETP)

Objective: To support the identification and demonstration of new and emerging energy-efficient technologies.

Projects are co-managed and cost-shared with industry and other stakeholders, such as gas and electric utilities, other governments and equipment manufacturers. Financial support is provided for the development and testing of pilot plants, prototypes and full-scale field trials to evaluate operating performance, energy efficiency and environmental impacts. NRCan’s financial support is repayable from any cost savings or revenues realized from a project.

Key 2004-2005 Achievements

• With the financial support of the ETP, Cambior Inc.’s Niobec Mine of Saint-Honoré-de-Chicoutimi, Quebec, and Hydro-Québec are designing and demonstrating a high-efficiency electrical-induction ore-concentrate dryer to replace the current oil-fired dryer. This will reduce energy consumption and GHG emissions.
• The ETP contributed to in-plant testing of a ceramic heat recovery unit in the flue of a zinc oxide furnace by G.H. Chemicals Ltd. of Saint-Hyacinthe, Quebec, and the Natural Gas Technology Centre, Boucherville, Quebec. The resulting 20 percent energy savings has justified installation of the heat recovery unit on four more furnaces with plans for installation on all 20 furnaces at the G.H. Chemicals’ plant.
• Westport Innovations Inc. of Vancouver, British Columbia, has completed an ETP-sponsored one-year field trial of its high-efficiency, direct-injection natural gas engine for stationary power generation, at a water/wastewater treatment facility in Grande Prairie, Alberta. GHG emissions were reduced by 26 percent compared with the Alberta electrical grid and 21 percent compared with a diesel generator.

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

Industrial Processes and Technologies: Industrial Energy Innovation

Objective: To assist major industrial energy consumers to reduce the energy intensity of their operations and to reduce GHG emissions, by-product emissions of CO₂ and other GHGs.

Industrial combustion processes are the major sources of industrial GHG emissions. Because they operate at low thermal efficiencies of 30 to 50 percent, there are major opportunities to improve industrial energy efficiency and productivity while significantly reducing GHG emissions.

CETC’s work in this area includes changing the interaction of the combustion system with the process with advanced tools and technologies. As well, together with the Large Final Emitters Group and the Office of Energy Efficiency, CETC held technical workshops with major industry sectors (steel, mining, smelting and refining, cement, lime, and pulp and paper) and with CIPEC, industrial associations and individual companies to help define and map partnerships for a generic industrial combustion R&D program and applications to take advantage of these opportunities, with potential energy and GHG reductions of 10 to 40 percent. In addition, it is engaged in developing generic tools and technologies that cross industry sectors, fuels and furnaces.

Key 2004-2005 Achievements

• Application of state-of-the-art burner technologies to industrial processes. High Temperature Air Combustion (HTAC) technology has the potential to reduce natural gas use by as much as 50 percent in steel heating processes and maintain ultra-low nitrogen oxide emissions. This will reduce GHG emissions. The Industrial Energy Innovation program has been active in this area, presenting eight workshops to steel companies and developing project descriptions for two research consortia for HTAC technology development. As well, it received four written expressions of interest in these consortia, prepared a business plan to include the consortia and the installation of a Pilot-Scale Research Industrial Furnace at CETC–Ottawa, and prepared reports on the cost benefit analysis of the HTAC technology in steel furnaces.
• Jointly with Large Final Emitters, conducted one- to two-day workshops at CETC–Ottawa with each major industrial energy-intensive sector – steel, mining and smelting, refining, cement, lime, pulp and paper – to develop technical roadmaps to define and achieve industry R&D needs and goals.
• Developed and tested a software tool, EFFECC (Efficiency Evaluation and Combustion Calculation Tool), that can be installed on any computer and easily used by engineers or consultants doing combustion energy evaluations. This software promptly identifies efficiency opportunities, as well as major heat losses that can cause excessive GHG emissions due to incomplete combustion, heat transfer and exhaust of combustion products.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/industrial_
innovation_e.htm

Industrial Processes and Technologies: Minerals and Metals Program

Objective: To reduce GHG emissions from Canada’s minerals and metals sector by enhancing mineral and metal recycling processes and practices, by encouraging replacement of cement in concrete by supplementary cementing materials (SCMs), and by assessing alternate production processes.

The Minerals and Metals Program is a component of the Government of Canada Action Plan 2000 on Climate Change managed by CANMET Mineral Technology Branch. It has a GHG emissions reduction target of 1.65 million tonnes of CO₂ equivalent per year, by 2010. It consists of 1) the Enhanced Recycling program that aims to increase Canada’s potential to recycle all materials by developing new approaches and improving upon existing recycling infrastructure, practices and policies; and 2) the Enhanced Emission Reductions for Minerals and Metals program, which supports activities that will increase the use of SCMs in concrete to replace portland cement (thereby reducing the GHG emissions of concrete production) and which examines processes where improved understanding can lead to new emission-reduction opportunities in the minerals and metals industry sector.

Key 2004-2005 Achievements

• The Enhanced Recycling program raised awareness of many important issues among a broad group of stakeholders across Canada, especially at the municipal and regional level, through participation in various communications opportunities. Other activities included completion of a project to characterize construction and demolition wastes, and significant progress on a pilot project to examine the feasibility of adding scrap metal to a residential blue box collection program.
• CANMET’s Materials Technology Laboratory completed the development of a user-friendly tool for contractors wanting to use SCMs in their construction projects.
• In partnership with stakeholders, several projects were undertaken to demonstrate the viability of and resolve technical issues associated with SCM use in different applications.

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

nrcan.gc.ca/mms/canmet-mtb/mtl/research/concrete_e.htm

Industrial Processes and Technologies: Mine Ventilation

Objective: To reduce energy consumption and GHG emissions associated with mine ventilation through infrastructure automation (to support demand-based delivery systems), ventilation network optimization and management, and less air-volume demanding technology.

Mine ventilation systems that were traditionally designed to operate at maximum flow (peak production 24 hours a day, 7 days a week) are being adjusted to match actual production needs. Ventilation is required in underground mines to maintain a safe working environment by diluting and removing harmful pollutants (dusts and gases) and providing a thermally suitable working climate. Providing sufficient and suitable ventilation can account for 40 percent of the energy consumed underground by a mining operation. Energy savings at less than peak demand range from linear for the heating/cooling systems through to a cubic relationship for the primary fan system. However, optimizing energy use is not straightforward, as it depends on the specific consumption profile (i.e. electricity versus heating fuels and primary versus secondary delivery systems) for each mine and requires evaluation on a case-by-case basis.

Key 2004-2005 Achievements

• In order to assess potential cost, energy requirements and GHG-reduction strategies, CANMET — Mining and Mineral Science Laboratories investigated process-based modelling of ventilation needs as a function of the life of the mine. This will enable mine management to select the level of ventilation that is appropriate to support production and to dilute contamination, on an on-demand basis. The models are expected to be available by 2006.
• The case study for the implementation of ventilation on demand at an Inco mine continues. The first phase monitored activity and revealed that some ventilation infrastructure operates needlessly for long periods of time. Logging of energy demands associated with ventilation as a function of production cycles is ongoing. In the next phase, modelling will enable Inco to evaluate, through a business case, the ventilation control options that can result in providing air as it is needed.

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