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Canadian Industry Program for Energy Conservation
2001/2002 Annual Report
Natural Resources Canada
Cat. No. M92-143/2002-1E ISBN 0-662-34071-X ISSN 0846-9474
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TABLE OF CONTENTS
Success Stories
BHP Billiton Diamonds Inc.
The Clorox Company of Canada, Ltd.
General Motors of Canada Limited
IMC Potash Colonsay
Michelin North America (Canada) Inc.
Midwest Food Products Inc.
Nexen Inc.
Ontario Power Generation Inc.
Schneider Foods
Stelfil Ltée
St. Lawrence Cement Inc.
Versacold Group
Partnership in a New Era
CIPEC Executive Board
How CIPEC Works
CIPEC Task Force Council
Sector Reports
Aluminum
Brewery
Cement
Chemical
Construction
Dairy
Electrical and Electronics
Electricity Generation
Fertilizer
Food and Beverage
Foundry
General Manufacturing
Lime
Mining
Oil Sands
Petroleum Products
Pulp and Paper
Rubber
Steel
Textiles
Transportation Equipment Manufacturing
Upstream Oil and Gas
Wood Products
Industrial Energy Innovators
Association Members
Industrial Programs Division Staff
Glossary of Terms
OUR MISSION
To promote effective voluntary action that reduces industrial energy use per unit of production, thereby improving economic performance while participating in meeting Canadas climate change objectives.
The following companies exhibit the vision and perspective that symbolize CIPECs mission.
BHP BILLITON DIAMONDS INC.
BHP Billiton Diamonds Inc.s recently formed Operating Excellence team at its Ekati Diamond MineTM in the Northwest Territories has invigorated the companys energy efficiency efforts. Because all fuel used at the mine must be trucked in, minimizing energy consumption is vital to the mines
Although the mine is energy efficient by design and the company has an eight-year record of investing in energy savings, Operating Excellence has taken earlier efforts to a new level by instilling a relentless commitment to seizing every available opportunity to reduce waste.
The Operating Excellence team, formed in April 2002, is made up of a small
group of passionate volunteers from a number of departments. Their goal is to
save 500 000 litres of fuel per year – about 6 percent of the mines
annual consumption. Seeking to build an energy-saving culture within the company,
the team introduced a suggestion program that garnered overwhelming response.
Reinforced by an energy awareness program that includes prizes and recognition,
the mine began installing motion-sensor lighting and educating staff to turn
out lights in unoccupied areas. Thanks to the suggestions it received as well
as its own ideas, within three weeks of its launch, the Operating Excellence
team cut fuel usage by an impressive 88 000 litres per year.
Operating Excellence continues to look at all corners of the mines operations
for additional energy savings. For example, the team is investigating the possibility
of replacing diesel fuel with used oil in its waste incinerators, potentially
saving as much as 475 000 litres of fuel per year. With a great deal of energy
needed to pump potable water at the mine, the team is also looking at cutting
electricity consumption by improving the efficiency of water-handling equipment,
including devices as small as toilets and sinks.
THE CLOROX COMPANY OF CANADA, LTD.
Like most of The Clorox Company of Canada, Ltd.s manufacturing operations,
the Glad Division plant in Orangeville, Ontario, has been actively seeking ways
to improve its energy efficiency.
In recent years, the plant has installed high-efficiency lighting systems and motion-sensor-activated lights, wrapped its extruder manifolds with insulating blankets and retrofitted its switch gears with capacitors – all in aid of conserving energy. However, it is the companys participation in the preservation and operation of a railway line that has attracted the most attention.
Spearheading a consortium of six local companies, Clorox played a vital role
in acquiring the mothballed 55-kilometre Canadian Pacific Railway line between
Orangeville and Streetsville, Ontario, and creating a company to operate it.
The consortium, called the Orangeville-Brampton Rail Access Group (OBRAG), convinced
provincial, county and local governments to purchase the line and took on responsibility
for maintenance, capital improvement and administration. OBRAG hired Cando Contracting
Ltd., a specialist in running short-haul railways, to operate the rolling stock.
Beginning operations in November 2000, the rail line now provides a vital
link between local manufacturers and their supply chains, carrying about 500
freight-car loads of raw materials to Orangeville each year. Although the driving
force behind the preservation of the rail line was an economic one, OBRAG estimates
that its trains save a significant amount of fossil fuel consumption by replacing
about 1400 annual truck trips from the Greater Toronto Area over local roads.
Supplanting these stop-and-go truck trips with a non-stop train route is definitely
a step in the right direction for air quality and reduced GHG emissions.
GENERAL MOTORS OF CANADA LIMITED
The environmental principles under which General Motors of Canada Limited (GMCL) operates demonstrate the companys resolve to reach further than compliance with the law to encompass the integration of sound environmental practices into our business decisions.
The companys persistence in fulfilling this mandate has led to impressive
results in many areas, including GHG emissions reductions. Over the last decade,
a far-reaching program of initiatives launched by GMCL has reduced its company-wide
GHG emissions by 37 percent since 1990, in the process reducing its energy use
by 479 million kWh. Energy efficiency efforts undertaken by the company at its
vehicle assembly plants have reduced energy consumption per vehicle produced
from 3.43 MWh in 1990 to 2.44 MWh in 2000, a decrease of 30 percent. Over the
same period, GMCL realized a similar per-vehicle reduction in GHGs, from 0.652
tonnes of carbon dioxide equivalent (CO2e) in 1990 to 0.458
tonnes in 2000.
GMCL has achieved these results through a rationalization of production and
by investing in energy-efficient equipment and manufacturing processes. The
company also actively informs employees and suppliers and motivates them to
commit to energy efficiency in their operations. In addition, GMCL participates
in such organizations as the Coalition for Environmentally Responsible Economies
(CERES), which brings together environmental, investor and advocacy groups to
focus on creating sustainable and socially responsible practices. GMCL is working
toward an aggressive new environmental target – a 25 percent reduction
in energy usage with a baseline year of 1995 by the year 2005. This would
result in a projected CO2reduction of about 45 percent compared
with a 1990 baseline.
IMC POTASH COLONSAY
Fuelled by natural gas, the fluosolids dryer at IMC Potash Colonsay operates around the clock, 330 days a year. Drying fluosolids is an energy intensive activity, and any improvements in the process are likely to pay significant dividends in reduced energy costs at this potash mill in Colonsay, Saskatchewan.
The company established a project team to evaluate energy consumption in the dryer, identify the most promising possibilities for process improvement and implement these solutions. The team found that gaining better control of airflow in the dryers windbox (thereby holding temperatures at optimum levels) offered major opportunities for a reduction in energy consumption. However, lacking adequate airflow data that would enable it to identify optimum variables for the complex equipment, the team was forced to improvise using design of experiment techniques. Getting it right was critical, as any mistakes would show up as a deterioration in product quality.
Using a variety of systems, technologies, practices and programs, the project
team developed a solution that works for various production levels. The mills
digital control system was modified with an algorithm that mimics the response
of a control operator to process changes, instantly adjusting airflow to maintain
optimum drying temperatures. The projects results speak for themselves
– by improving dryer fuel efficiency by 11 percent, the mill has reduced
annual natural gas consumption at the Colonsay site by 1.4 million m3 and
cut electricity use by reducing the workload on windbox fans. The company estimates
that the $10,000 project will save the mill $490,000 per year, results that
can be tripled by duplicating the solution at two other company mills.
MICHELIN NORTH AMERICA (CANADA) INC.
As part of a worldwide family of quality-oriented companies, Michelin North
America (Canada) Inc. is committed to a simple energy management goal: to manufacture
more product with less energy.
Making this happen has led the company to work closely with Michelin operations
in the United States, establish and share best practices, and develop an ongoing
energy training program for employees in its three tire plants in Nova Scotia.
It has also provided the impetus to upgrade technology and implement practices
for operations and maintenance that are more energy efficient.
Michelin has appointed an energy champion at each plant who works to ensure
that energy efficiency considerations are integrated into the decision-making
process and incorporated into the plants working culture. Within its plants,
power monitoring systems identify areas of prime electricity usage – the
first step in developing ways to improve electrical efficiency. Ongoing audits
of steam and compressed-air handling systems enable plants to identify areas
that need improvement and to implement maintenance procedures that ensure that
steam and air leaks are located and repaired immediately.
Investments in new technology are also yielding results. The company installed
variable speed drives on four major handling units in one of its plants (an
investment that paid for itself in less than one year through energy savings)
and upgraded lighting to more efficient T-8 fluorescent technology. Thanks to
concerted efforts to upgrade energy efficiency, Michelins energy intensity
trends have shown a strong improvement. Depending on the product line, the companys
Canadian plants have reduced the energy consumed per kilogram of production
by between 10 and 25 percent since 1992.
MIDWEST FOOD PRODUCTS INC.
When Nestlé Canada Inc. asked its factories to commit to a 5 percent
reduction in energy use for the year 2000, Midwest Food Products Inc.s
plant in Carberry, Manitoba, responded.
The producer of frozen and dehydrated potato products took a hard look at
its processes and identified a number of areas where energy usage performance
could be improved. For example, the plant decided to upgrade its electrical
system and retrofit its line dryers to improve energy efficiency. Midwest Food
Products also installed more efficient automatic pressure-venting equipment
on its steam system as part of a program to minimize vented steam, thereby reducing
energy waste.
The results of these and the plants other energy initiatives are impressive.
These initiatives represent a reduction in energy costs of more than $900,000
in 1999 and $400,000 in 2000 for the Carberry plant. As a result of its aggressive
actions to reduce wasted energy, between 1997 and 2000 Midwest Food
Products slashed CO2emissions that result from the consumption
of fuels in its processing plant by about 10 000 tonnes per year, making
a significant contribution to Canadas GHG-reduction initiatives.
Nestlé Canada Inc. is also concerned about the environmental impacts
of its factories, and in 2000 the head office undertook a company-wide water-usage
reduction program with an identified target of a 5 percent reduction per year.
Midwest Food Products has exceeded this target by reducing its water usage by
15 percent in one year.
The factories of Nestlé Canada Inc., which include Midwest Food Products
Inc., support economically sound industry initiatives that are designed to voluntarily
assist the Government of Canada in meeting its goal of reducing greenhouse gas
emissions.
NEXEN INC.
Finding simple, low-cost opportunities to capture waste energy is leading
to significant GHG reductions for petroleum and natural gas producer Nexen Inc.
Over the past five years, Nexen has employed this strategy to achieve significant
energy waste reductions in its heavy oil operations.
As part of its road map to GHG reduction, Nexen installed portable vent gas
compressors and gathering systems at various locations throughout its operations
to capture previously vented natural gas, thereby conserving 5.8 million standard
cubic feet per day (mmscfpd) of methane and reducing GHG emissions by the
equivalent of more than 700 kilotonnes of CO2per year. At its facility
in Luseland, Saskatchewan, the company now uses captured gas to fuel production
equipment, saving the equivalent of 1 mmscfpd in energy consumption and
reducing emissions by 150 000 tonnes of CO2e per year.
With its road map to reduced GHGs also pointing the way to an improved bottom
line, Nexen is studying other profitable opportunities to save waste energy.
The company is exploring the capture and compression of casing gas for injection
into its gas wells, providing an energy reserve for future use as vent rates
decline and energy demand increases. Nexen is also looking at the use of casing
gas collected in the field for processing and sale to generate power for use
in the oil field or to fuel its nearby processing facilities. Whichever road
it follows, the company is certain that the imagination and dedication of its
operations staff can overcome any detours or roadblocks along the way.
Nexen Inc.s facility in Luseland, Saskatchewan, and its other heavy-oil operating areas have shown impressive results through methane vent reductions.
Nexen is challenging other producers to find similar benefits in other oil and gas operations.
ONTARIO POWER GENERATION INC.
Ontario Power Generation Inc. (OPG) is serious about improving energy efficiency
and reducing GHG emissions. In recent years, the company has incorporated these
twin objectives into its management systems, launched a series of major energy-saving
activities and joined with other organizations to OPGs actions are part
of a comprehensive initiative called Energy Efficiency @ Work, an
award-winning program that combines employee education, cooperative action,
energy-related investment and the search for alternative green sources
of electrical energy.
The Energy Efficiency @ Work program has yielded dramatic results. Since 1994,
the company has undertaken more than 300 thermal/conversion efficiency and electrical
efficiency projects, leading to energy savings of 2000 GWh per year, annual
cost savings of $90 million and yearly GHG emissions reductions of 2.7 million
tonnes. The companys energy savings under the program are equivalent to
the energy consumed by a city of 80 000 people every year.
Networking and sharing information and advice helped to make the Energy Efficiency
@ Work program a success. The program is a result of many contributions and
special partnerships that OPG developed with the Canadian Energy Efficiency
Alliance, Natural Resources Canadas Office of Energy Efficiency and support
from the Alliance to Save Energy and Consortium for Energy Efficiency. Together,
these organizations have demonstrated that energy efficiency makes sense and
can be accelerated through partnerships.
Committed to cooperative action on climate change, OPGs Energy Efficiency
@ Work program was the first Canadian endeavour to win the prestigious Climate
Protection Award presented by the U.S. Environmental Protection Agency. These
achievements amply demonstrate OPGs commitment to maintaining its triple
bottom line of economic performance coupled with environmental stewardship and
social equity.
Ontario Power Generation Inc., in partnership with Enbridge Gas Distribution
Inc., EnerSys Analytics Inc., Internorth Construction Ltd. and NRCans
Commercial Building Incentive Program, achieved a 30 percent energy improvement
over Canadas Model National Energy Code for Buildings for OPGs 777
Brock Road Building in Pickering, Ontario.
More information is available at the Web site at http://www.energy-efficiency.com.
SCHNEIDER FOODS
An energy audit at Schneider Foods plant in Kitchener, Ontario, has
uncovered major opportunities for energy and cost savings.
The audit, conducted with the help of the Government of Canadas Industrial Energy Audit Incentive, focussed on the companys steam and refrigeration systems and on opportunities for energy cogeneration. By taking a thorough look at Schneider Foods facility, equipment and operating systems, the audit uncovered hundreds of thousands of dollars in potential savings – savings that are also possible at other Schneider plants.
For example, modifications to the boiler plant feeding the plants steam
systems could save $145,000 in yearly natural gas expenditures, and reductions
in the main plants ventilation rate can save another $125,000. Together,
these measures would reduce the plants natural gas consumption by about
20 percent, with a payback on investment of less than one year. Improvements
to refrigeration and ventilation systems could reduce electricity use by 15
percent and produce savings of $465,000 per year. Several of the measures recommended
by the audit, such as reductions in steam pressures and in the ammonia cooling
process, can be implemented at no cost, thereby producing instant savings with
no impact on temperatures or product quality.
The audit identified cogeneration as one of the most promising energy-saving
opportunities for Schneider Foods. The plants electrical and steam usage
profile is ideal for on-site power generation, and an investment of $6 million
to install a natural-gas-powered generating system should net the company about
$1.5 million in annual energy savings.
STELFIL LTÉE
Compared with most plants in the Stelco family, the Stelfil Ltée facility
in Lachine, Quebec, is small. But small manufacturing plants that focus on energy
efficiency can have a big impact.
Since 1991, by diligently looking at equipment, maintenance and operating
practices for ways to improve efficiency, Stelfil achieved a 30 percent reduction
in energy consumption.
The plant left no stone unturned. For example, the steel wire producer recognized
an opportunity to reduce its GHG emissions by converting its heavily used fleet
of lift trucks to natural gas. Stelfil installed two 3600-psi natural gas compressors
and refitted its 24 lift trucks to handle the new fuel. The results have been
outstanding – not only was the annual consumption of 240 000 litres of
propane replaced by 145 000 m3 of less expensive natural gas, but
the cleaner-burning fuel saved an additional 225 000 m3 of natural
gas each year by reducing ventilation requirements. In total, Stelfils
lift truck program reduced the plants GHG emissions by 489 tonnes
of CO2.
And there were other benefits. Employee safety improved because using natural
gas substantially reduced carbon monoxide emissions within the plant, the danger
of explosion was minimized and back injuries resulting from cylinder replacements
were eliminated. Moreover, lift truck engine maintenance costs were cut, refuelling
time was halved and energy costs were slashed by more than $100,000 per year.
ST. LAWRENCE CEMENT INC.
St. Lawrence Cement Inc. reduces the energy component of its cement products by substituting supplementary cementitious materials (SCMs) for Portland cement and recovering energy from selected waste materials.
The company is a joint owner – with St. Marys Cement – of Great Lakes Slag, which granulates blast furnace slag, a by-product of steel making. St. Lawrence Cement grinds the granulated slag at its plant in Mississauga, Ontario, to produce GranCem®, an SCM that can reduce the use of energy-intensive Portland cement in the production of concrete. Ready mix companies blend GranCem® with Portland cement to make concrete for the construction of foundations and highways. The appropriate use of GranCem® indeed brings improved performance in mechanical properties and durability to concrete.
GranCem®, which is used in a mixture with cement in a ratio
of 1 to 3 or 1 to 4, consumes about 25 percent of the energy needed to manufacture
the Portland cement that it replaces. By investing in GranCem® production,
St. Lawrence Cement is able to accommodate much of its market growth without
corresponding increases in energy consumption.
St. Lawrence Cement is also using waste materials to substitute part of the
energy component in cement. The company has installed a $6 million granular
fuel system at its facility in Joliette, Quebec, that will allow the plant to
burn waste material such as sawdust, tire fluff, rubber chips and dried sewage
sludge in two of its four kilns. The new system will enable the company to offset
the burning of about 42 000 tonnes of coal and coke fuel per year by co-processing
waste material that would otherwise have been landfilled or disposed of in a
less beneficial manner.
VERSACOLD GROUP
Thanks in part to its active involvement in workshops conducted by Natural Resources Canadas Office of Energy Efficiency under the CIPEC banner, Versacold Group has made outstanding progress toward improved energy efficiency.
Across the company, Versacold facilities reduced energy costs in 2001 despite rapid increases in natural gas prices, the inclusion of an additional site in the companys calculations and a doubling of electricity prices in Alberta due to deregulation. Compared with its energy use in 2000, the company decreased its use of electricity by 1.2 million kWh (1 percent) and its use of natural gas by 12 800 GJ (7 percent).
Innovation and cooperation are among the tools Versacold uses locally to further
its company-wide energy efficiency goals. For example, at its facility in Lethbridge,
Alberta, the company is recovering waste heat from the industrial refrigeration
plant and using it to preheat process feed water for Maple Leaf Potatoes, which
shares the same building. In 2001, the heat recovery programs first full
year of operation, Versacold transferred an average of 1.42 million Btu per
hour of waste heat from its cooling facilities to the potato plants feed
water. Over the course of the year, the facility reduced natural gas consumption
by 11 percent, saving more than $87,000 in expenditures for natural gas. When
electricity savings are added, the $105,000 project paid for itself in less
than a year.
Versacold Group rewards the outstanding efforts of its energy managers with
its own annual energy efficiency awards.
These are presented to each of the companys Pacific, Alberta and Eastern
regions. A national award is also given.
Two of these awards were presented at Versacolds energy managers
conference in Vancouver, British Columbia, in 2002.
PARTNERSHIP IN A NEW ERA
This report represents a watershed for the Canadian Industry Program for
Energy Conservation (CIPEC). For the first time, it reflects the completion
of our expansion beyond our original mining and manufacturing mandate to encompass
the energy management efforts of substantially all Canadian industry.
CIPEC, a remarkable partnership between Canadian business and the Government
of Canada, is now the true standard-bearer for industrial energy efficiency
action across the country.
The transition to this expanded role was completed with the addition of
three new sectors to the CIPEC family. In last years Annual Report, the
energy supply sector, represented by electricity generation and upstream oil
and gas, reported for the first time. This year, the construction sector joins
the fold.
With industry more unified under the CIPEC umbrella, the organization now
brings together sectoral associations that encompass well over 95 percent of
all industrial energy use in Canada. Broader, stronger and more active than
ever in our efforts to promote effective energy management, the program continues
to set new standards for organizations of its type throughout the world.
CONTINUOUS IMPROVEMENT: A SNAPSHOT
MINING, MANUFACTURING AND CONSTRUCTION
- These sectors achieved an energy intensity improvement of 1.8 percent per year between 1990 and 2001, well above the 1 percent-per-annum improvement commitment made in 1994.
- Energy-related greenhouse gas (GHG) emissions in 2001 were 8.4 percent lower than emissions in 1990.
- According to Natural Resources Canada (NRCan) statistics, these sectors used 22.5 percent less energy to produce a dollar of output in 2001 than they did in 1990.
ENERGY SUPPLY
- Upstream oil and gas companies have implemented 307 projects that have resulted in GHG reductions of 13 million tonnes.
- Electric utilities reported 706.3 GWh of alternative energy production in 2001, up from 0.4 GWh in 1990.
CANADIAN INDUSTRY: THE BIG PICTURE
- The average annual energy intensity improvement from 1990 to 2001 was 0.5
percent.
- The total energy saved by CIPEC industries during 2001 is equivalent to
93 percent of consumer energy demand in the Atlantic provinces.
- Energy savings related to effective energy management practices totalled
more than $2.8 billion in 2001.
- CIPEC sectors used 5.6 percent less energy to produce a dollar of output
in 2001 than they did in 1990.
- Two new trade associations signed letters of cooperation with CIPEC, bringing
total participation to 45 associations. Collectively, these groups represent
more than 5000 companies – more than 95 percent of industrial energy
demand.
- There are now 25 CIPEC task forces, covering almost every aspect of industrial
energy demand in Canada.
- By the end of 2002, 374 companies were registered as Industrial Energy Innovators,
an increase of 60 companies over the previous year. The eagerness of Canadian
companies to sign up for this program is a sure sign that they are more aware
than ever that sound energy management is key to business success and to their
ability to take advantage of new programs.
CIPEC continues to grow because companies recognize two facts about energy efficiency: its good for business and it benefits the environment. Today, with volatile and generally rising energy prices and international climate change initiatives that are prompting businesses to look closely at how they use energy, CIPEC and the resources it offers have never been more relevant. By providing tools to improve energy efficiency, CIPEC is helping participants cut costs and increase profits. Combined on a national scale, these actions are playing a significant role in reducing Canadas energy consumption and GHG emissions – essential progress toward meeting our international climate change commitments.
SUSTAINING CIPECS MOMENTUM
When Canada signed the Kyoto Protocol, its national climate change mandate advanced to a new level. The challenge now facing CIPEC is to match the accelerated pace of change required of business with the innovative support programs and powerful energy management tools needed to foster success.
With the vast majority of Canadian industry now covered by CIPEC, our goal is to help industry – sector by sector and company by company – to sustain and intensify the march toward effective energy management. CIPECs mission remains fundamentally the same: to promote, encourage and foster energy efficiency improvements and GHG emissions reduction throughout Canadas industrial sectors.
CIPEC believes that the tools and resources that it makes available to participating sectors will take on greater importance as companies seek out every opportunity to improve economic performance and lower GHG emissions. CIPECs customized workshops can help companies audit their energy consumption, identify waste, establish energy management systems and implement actions that improve efficiency.
As the pace toward GHG emissions reductions quickens, CIPEC will respond by continuing to play a key role as a conduit for vital information on government programs and funding opportunities and to develop programs and services that respond to the evolving needs of Canadian industry.
A NEW ENERGY NETWORK
One of CIPECs most significant recent initiatives is its Energy Managers Network. The goal of this group is to develop a learning network for industrial energy practitioners who seek to share the knowledge, information, tools and skills required to improve the competitiveness of their organizations and support climate change goals.
The CIPEC Energy Managers Network is based on the belief that achieving improvement in industrial energy efficiency requires ever-broadening participation from industry. The Network is supported by a Web site that provides access to a comprehensive energy management tool kit, training resources, workshops and the CIPEC Energy Managers Network Discussion Board.
AN IMPORTANT RESOURCE
In 2002, NRCan conducted a study to determine the effectiveness of the CIPEC program. The results affirmed the importance of CIPEC to improving energy efficiency and reducing GHG emissions in Canada. According to the study, there was a significant difference between the amount of energy consumed by CIPEC participants and by non-participants. The results demonstrated that
- the growth of energy consumption by participants was less than half of that
for non-participants
- three times more participants reported reductions in energy use than non-participants
- 15 percent fewer participants reported an increase in energy use than non-participants
The study also revealed that individual CIPEC programs are well received, with 100 percent of participants using at least one program element. Results show that
- 60 percent of participants read our regular newsletter Heads Up CIPEC
- 45 percent use the CIPEC Web site
- 42 percent participate in CIPEC workshops
Of participants attending a CIPEC Dollars to $ense workshop, more than half implement energy efficiency elements such as conducting energy inventories, developing motor-loading profiles and establishing an energy management team.
THE ROAD AHEAD
In the coming year, CIPECs goal is to broaden its mandate and augment its services to help industry comply with increasingly demanding standards of emissions performance. The stakes are high for Canada and for the industries that power our economy. CIPEC is ready to play a vital role in building and sustaining the momentum toward positive change.
On behalf of the CIPEC family of industries, I would like to express our gratitude to NRCan for its continued and growing support of CIPECs unique public and private sector partnership. The task ahead is demanding, but with government and industry working together, I am confident that Canada will continue to make strong progress toward its climate change goals.
Douglas E. Speers
President and CEO, EMCO Limited
Chair, CIPEC Executive Board
New CIPEC Chair
Douglas E. Speers has been named Chair of CIPECs Executive Board. He
replaces W. Warren Holmes, Senior Vice-President, Canadian Mining Operations,
Falconbridge Ltd., who served as Chair from 2000 to 2002. A professional engineer
with extensive experience in the petroleum industry, Mr. Speers is President
and CEO of EMCO Limited, a leading Canadian building products company. Under
his leadership, EMCO has moved to the forefront in the pursuit of energy efficiency.
His commitment to CIPECs goals and his track record of service in other
voluntary roles in manufacturing, construction and education make Mr. Speers
an ideal choice to guide the new CIPEC.
CIPEC Executive Board
Douglas E. Speers
President and Chief Executive Officer
EMCO Limited
620 Richmond Street
London ON N6A 5J9
Tel.: (519) 645-3900
Fax: (519) 645-2465
E-mail: dspeers@emcoltd.com
Peter Birnie
President
Wabi Iron & Steel Corporation
330 Broadwood Avenue
P.O. Box 1510
New Liskeard ON P0J 1P0
Tel.: (705) 647-4383
Fax: (705) 647-6954
E-mail: pbirnie@wabicorp.com
Peter H. Cooke
Senior Consultant
Lafarge Canada Inc.
606 Cathcart Street, 8th Floor
Montréal QC H3B 1L7
Tel.: (514) 861-1411, Ext. 3285
E-mail: peter.cooke@lafarge-na.com
T. Reginald Driscoll
President
Albarrie Canada Limited
85 Morrow Road
Barrie ON L4N 3V7
Tel.: (705) 737-0551
Fax: (705) 737-4044
E-mail: albarrie@albarrie.com
James Fleck
President and CEO
Camco Inc.
175 Longwoods Road South
Hamilton ON L8N 3Y5
Tel.: (905) 521-3106/
(905) 521-3128 (Carollyn Wilkins)
Fax: (905) 521-3386
E-mail: carollyn.wilkins@camc.ge.com
Daniel Gagnier
Vice-President
General and Environmental Affairs,
Health and Safety
Alcan Inc.
1188 Sherbrooke Street West
Montréal QC H3A 3G2
Tel.: (514) 848-8118
Fax: (514) 848-1494
E-mail: daniel.gagnier@alcan.com
Wayne Kenefick
Director of Sustainable Development
Graymont Limited
3025 – 12th Street North East, Suite 190
Calgary AB T2E 7J2
Tel.: (403) 219-1320
Fax: (403) 291-1303
E-mail: wkenefick@graymont-ab.com
Hugh Klaassen
Corporate Operating Officer
Paramount Resources Ltd.
4700 Bankers Hall West
888 – 3rd Street, S.W.
Calgary AB T2P 5C5
Tel.: (403) 290-3671
Fax: (403) 290-3614
E-mail: hugh.klaassen@paramountres.com
Yves Leroux
Vice-President Regulatory & Government Affairs
Parmalat Dairy & Bakery Inc.
405 The West Mall
Toronto ON M9C 5J1
Tel.: (416) 620-3010
Fax: (416) 620-3538
E-mail: yves_leroux@parmalat.ca
David Lewin
Senior Vice-President
EPCOR
10065 Jasper Avenue
Edmonton AB T5J 3B1
Tel.: (780) 412-3196
Fax: (780) 412-3192
E-mail: dlewin@epcor.ca
J. Norman Lockington
Vice-President, Technology
Dofasco Inc.
1330 Burlington Street East
P.O. Box 2460
Hamilton ON L8N 3J5
Tel.: (905) 548-7200, Ext. 3422
Fax: (905) 548-4667
E-mail: norm_lockington@dofasco.ca
Kevin Lyden
President
UPM-Kymmene Inc.
999 Oakmont Plaza Drive
Westmont IL 60559
U.S.A.
Tel.: (630) 850-4932
Fax: (630) 850-3511
E-mail: carolee.rabjohns@upm-kymmene.com
Brenda MacDonald
President
Coyle & Greer Awards Canada Ltd.
4819 Mossley Drive
P.O. Box 247
Mossley ON N0L 1V0
Tel.: (519) 269-3000, Ext. 233
Fax: (519) 269-3038
E-mail: bmacdonald@coylegreer.com
C.A. (Chris) Micek
Environment Manager Canada
Agrium Inc.
11751 River Road
Fort Saskatchewan AB T8L 4J1
Tel.: (780) 998-6959
Fax: (780) 998-6677
E-mail: cmicek@agrium.com
Geoffrey H. Moore
President
Fibrex Insulations Inc.
561 Scott Road
P.O. Box. 2079
Sarnia ON N7T 7L4
Tel.: (519) 336-7770, Ext. 232
Fax: (519) 336-1634
E-mail: gmoore@fibrex.org
Ronald C. Morrison
Treasurer of the Board
Canadian Manufacturers & Exporters
1377 Hazelton Boulevard
Burlington ON L7P 4V2
Tel.: (905) 464-5887
Fax: (905) 335-0523
E-mail: rcm161@aol.com
John D. Redfern
Chairman of the Board
Lafarge Canada Inc.
606 Cathcart Street, 8th Floor
Montréal QC H3B 1L7
Tel.: (514) 861-1411, Ext. 3202
Fax: (514) 876-8900
E-mail: john.redfern@lafarge-na.com
Andrew Stephens
Vice-President
Refining and Supply
Petro-Canada
2489 North Sheridan Way
Mississauga ON L5K 1A8
Tel.: (905) 804-4565
Fax: (905) 804-4644
E-mail: stephens@petro-canada.ca
Norman J. Stewart
Vice President, Government Relations
& General Counsel
Ford Motor Company of Canada, Limited
The Canadian Road
P.O. Box 2000
Oakville ON L6J 5E4
Tel.: (905) 845-2511, Ext. 1104
Fax: (905) 845-5759
E-mail: nstewart@ford.com
HOW CIPEC WORKS
CIPEC is an umbrella organization overseeing a partnership between government and private industry aimed at improving Canadas industrial energy efficiency. CIPEC comprises sectoral task forces, each of which represents companies engaged in similar industrial activities that participate through their trade associations. The Task Force Council, with representatives from each CIPEC sector, provides a common forum for sectors to share ideas and recommend ways to address common needs. Overall direction is provided by an Executive Board, which is made up of private sector leaders who are committed to industrial energy efficiency.
In the CIPEC partnership, change emerges from consensus and joint action built through open and honest communication. CIPEC continues to be the focal point for industrys response to Canadas climate change efforts. Our role is to promote the evolution of energy efficiency and to identify and reward those who lead the way.
We carry out this mandate in part through a strong communications and awareness program anchored in our twice-monthly Heads Up CIPEC newsletter and in regular features in selected trade magazines. In July 2002, Heads Up CIPEC was redesigned as an on-line newsletter. This technological transformation has helped to increase traffic on the CIPEC Web site from 32 000 hits per month to more than a quarter of a million.
CIPEC also raises awareness of the goals and benefits of improved energy use in other ways. The Task Force Council and individual sectors are constantly at work to broaden participation, encourage the sharing of information and bolster awareness of the role and achievements of CIPEC industries.
CIPEC volunteers include successful business leaders and others recognized on the national stage. The profile of these leaders and their strong belief in CIPECs principles give us a strong edge in attracting new industry participants and in continuing the successful partnership between industry and government.
THE EVOLUTION OF CIPEC DATA
For the first time, CIPEC sectors in this report are organized in accordance with the North American Industry Classification System (NAICS). NAICS replaces the Standard Industrial Classification (SIC) system used in previous years. The switch was made to bring Canadas classification system in line with Mexico and the United States and its partners in the North American Free Trade Agreement and involved sub-sector realignment. In addition, the GDP dollar values reported here have been updated to reflect a 1997 base year. Previous reports were based on a 1986 base year.
Accurate measurement and meaningful data are fundamental to measuring energy efficiency improvements. The data used in this report are collected by Statistics Canada and interpreted by the Canadian Industrial Energy End-Use Data and Analysis Centre (CIEEDAC) at Simon Fraser University in Burnaby, British Columbia. From Statistics Canada data, CIEEDAC produces energy intensity indicators for each sector based on production and GDP.
The cooperative CIEEDAC system is internationally recognized for its methodologies,
data integrity and cooperation with CIPEC. Primary funding for CIEEDAC comes
from NRCan, with additional contributions from industry associations that participate
in CIPEC and from the province of Quebec.
CIPEC Task Force Council
CIPEC Task Force Council Chair
Susan Olynyk
Senior Energy Specialist
Dofasco Inc.
1330 Burlington Street
P.O. Box 2460
Hamilton ON L8N 3J5
Tel.: 1 800 363-2726, Ext. 6107
Fax: (905) 548-4267
E-mail: susan_olynyk@dofasco.ca
Aluminum Sector Task Force
Christian Van Houtte
President
Aluminium Association of Canada
1010 Sherbrooke West, Suite 1600
Montréal QC H3A 2R7
Tel.: (514) 288-4842
Fax: (514) 288-0944
E-mail: associa@aluminium.qc.ca
Brewers Sector Task Force
Margo Dewar
Vice-President, Economic Policy and Programs
Brewers Association of Canada
100 Queen Street, Suite 650
Ottawa ON K1P 1J9
Tel.: (613) 232-9601
Fax: (613) 232-2283
E-mail: mdewar@brewers.ca
Cement Sector Task Force
Christian Douvre
Vice-President, Performance and Technical
Assistance
Lafarge North America
6150 Royalmount Avenue
Montréal QC H4P 2R3
Tel.: (514) 738-3565
Fax: (514) 738-1124
E-mail: Christian.Douvre@lafarge-na.com
Chemical Sector Task Force
David F. Podruzny
Senior Project Manager
Business & Development
Canadian Chemical Producers Association
350 Sparks Street, Suite 805
Ottawa ON K1R 7S8
Tel.: (613) 237-6215
Fax: (613) 237-4061
E-mail: dpodruzny@ccpa.ca
CIPEC Annual Report
Bob Clapp
Vice-President, Ontario Division
Canadian Petroleum Products Institute
20 Adelaide Street East, Suite 901
Toronto ON M5C 2T6
Tel.: (416) 492-5677, Ext. 33
Fax: (416) 492-2514
E-mail: bobclapp@cppi.ca
CIPEC Communications Committee
Ed Gregory
Librarian, Information Specialist
Brewers Association of Canada
100 Queen Street, Suite 650
Ottawa ON K1P 1J9
Tel.: (613) 232-9106
Fax: (613) 232-2283
E-mail: egregory@brewers.ca
Construction Sector Task Force
Jeff Morrison
Director of Public Relations
Canadian Construction Association
75 Albert Street, Suite 400
Ottawa ON K1P 5E7
Tel.: (613) 236-9455
Fax: (613) 236-9526
E-mail: jeff@cca-acc.com
Dairy Sector Task Force
Gavin Wells
Corporate Energy Manager
Parmalat Dairy & Bakery Inc.
25 Rakely Court
Etobicoke ON M9C 5G2
Tel.: (416) 641-2943
Fax: (416) 622-4180
E-mail: gavin_wells@parmalat.ca
Electrical and Electronics
Sector Task Force
Steve Horvath
Horvath Consultants
71 Truman Road
North York ON M2L 2L7
Tel.: (416) 575-2335
Fax: (416) 385-1951
E-mail: brenda.horvath@sympatico.ca
Electricity Generation
Sector Task Force
Valerie Snow
ECR Program Manager
Canadian Electricity Association
1155 Metcalfe St., Suite 1120
Montréal QC H3B 2V6
Tel.: (514) 576-9193
Fax: (514) 489-7406
E-mail: snow@canelect.ca
Fertilizer Sector Task Force
David Finlayson
Director, Technical Affairs
Canadian Fertilizer Institute
350 Sparks Street, Suite 802
Ottawa ON K1R 7S8
Tel.: (613) 230-2597
Fax: (613) 230-5142
E-mail: dfinlayson@cfi.ca
Food and Beverage
Sector Task Force
Walter Kraus
Director, Environmental Affairs
George Weston Ltd.
22 St. Clair Avenue East, Suite 1901
Toronto ON M4T 2S8
Tel.: (416) 922-1383, Ext. 5414
Fax: (416) 922-4395
E-mail: walter.kraus@weston.ca
Foundry Sector Task Force
Judith Arbour
Executive Director
Canadian Foundry Association
1 Nicholas Street, Suite 1500
Ottawa ON K1N 7B7
Tel.: (613) 789-4894
Fax: (613) 789-5957
E-mail: judy@foundryassociation.ca
General Manufacturing
Sector Task Force – Central
Dorian S. Lavallée
Director, Sales & Marketing
Avon Fluid System Technologies Inc.
705 Progress Avenue, Unit 55
Scarborough ON M1H 2X1
Tel.: (416) 438-1233
Fax: (416) 438-1239
E-mail: dlavallee@afst.ca
General Manufacturing
Sector Task Force – East
André Desroches
Vice-President, Fabrication, Eastern Canada
EMCO Limited – Building Products
9510 Saint-Patrick Street
LaSalle QC H8R 1R9
Tel.: (514) 364-7528
Fax: (514) 364-4487
E-mail: ades@emcoltd.com
General Manufacturing
Sector Task Force – West
Steve Hertzog
Plant Manager
EMCO Building Products Canada
(A Division of EMCO Limited)
P.O. Box 576
Edmonton AB T5J 2K8
Tel.: (780) 440-7321
Fax: (780) 465-1181
E-mail: shertzog@emcoltd.com
Lime Sector Task Force
Dick Bowman
General Manager
Carmeuse Lime (Beachville) Limited
P.O. Box 98
Ingersoll ON N5C 3K1
Tel.: (519) 423-6283, Ext. 330
Fax: (519) 423-6135
E-mail: dick.bowman@carmeusena.com
Mining Sector Task Force
Lauri Gregg
Director of Energy Management –
Noranda-Falconbridge
Falconbridge Limited
207 Queens Quay West, Suite 800
Toronto ON M5J 1A7
Tel.: (416) 982-7076
Fax: (416) 982-3543
E-mail: lauri.gregg@toronto.norfalc.com
Oil Sands Sector Task Force
Kees Versfeld
Energy Management Leader
Syncrude Canada Ltd.
P.O. Box 4009, Mail Drop #2030
Fort McMurray AB T9H 3L1
Tel.: (780) 790-8605
Fax: (780) 790-4875
E-mail: versfeld.kees@syncrude.com
Petroleum Products Task Force
Bob Clapp
Vice-President, Ontario Division
Canadian Petroleum Products Institute
20 Adelaide Street East, Suite 901
Toronto ON M5C 2T6
Tel.: (416) 492-5677, Ext. 33
Fax: (416) 492-2514
E-mail: bobclapp@cppi.ca
Pulp and Paper Sector Task Force
Catherine Cobden
Vice-President, Environment
Forest Products Association of Canada
99 Bank Street, Suite 410
Ottawa ON K1P 6B9
Tel.: (613) 563-1441
Fax: (613) 563-4720
E-mail: ccobden@fpac.ca
Rubber Sector Task Force
Glenn Maidment
President
The Rubber Association of Canada
2000 Argentia Road
Plaza 4, Suite 250
Mississauga ON L5N 1W1
Tel.: (905) 814-1714
Fax: (905) 814-1085
E-mail: glenn@rubberassociation.ca
Steel Sector Task Force
Bob Downie
Environmental Co-ordinator
Gerdau Ameristeel Cambridge Inc.
160 Orion Place
P.O. Box 1734
Cambridge ON N1T 1R9
Tel.: (519) 740-2488, Ext. 1306
Fax: (519) 623-2062
E-mail: bdownie@courticesteel.com
Textiles Sector Task Force
Peter Chantraine
Manager, Energy and Environment
DuPont Canada Inc.
455 Front Road
P.O. Box 2100
Kingston ON K7L 4Z6
Tel.: (613) 548-5025
Fax: (613) 548-5356
E-mail: peter.chantraine@can.dupont.com
Transportation Equipment
Manufacturing Sector Task Force
Paul Hansen
Manager, Environmental Affairs
DaimlerChrysler Canada Inc.
4510 Rhodes Drive, Suite 210
Windsor ON N8W 5K5
Tel.: (519) 973-2864
Fax: (519) 973-2613
E-mail: plh2@daimlerchrysler.com
Upstream Oil and Gas
Sector Task Force
John E. Squarek
Manager, Alberta Operations
Canadian Association of Petroleum Producers
350 – 7th Avenue Southwest, Suite 2100
Calgary AB T2P 3N9
Tel.: (403) 267-1112
Fax: (403) 266-3214
E-mail: squarek@capp.ca
Wood Products Sector Task Force
Jean-Claude Mercier
Vice-President, Eastern Division
Forintek Canada Corp.
319 Franquet Street
Sainte-Foy QC G1P 4R4
Tel.: (418) 659-2647
Fax: (418) 659-2922
E-mail: jean-claude.mercier@qc.forintek.ca
Canadas Climate Change
Voluntary Challenge and
Registry Inc. (VCR Inc.)
Bob Flemington
President
VCR Inc.
170 Laurier Avenue West, Suite 600
Ottawa ON K1P 5V5
Tel.: (613) 565-5151
Fax: (613) 565-5743
E-mail: rflemington@vcr-mvr.ca
SECTOR REPORTS
Aluminum
Profile In 2002, Canadas aluminum sector ranked third in the
world in annual primary aluminum production. The combined output of the industrys
10 aluminum plants in the province of Quebec and one in British Columbia is
a major contributor to Canadas national and local economies. Although
production increases have forced the industrys total energy usage slightly
upward, measurements of energy efficiency continue to demonstrate much-improved
performance compared with 1990 benchmark levels.
Performance Highlights
- In January 2002, the industry signed a framework agreement on GHG emissions
with the province of Quebec.
- Alcan Inc. will reduce total annual emissions at its facilities in the province
of Quebec by 285 000 tonnes of CO2e by the end of 2003 compared
with
a baseline year of 1999.
- Alcoa Inc. will cut annual emissions by 200 000 tonnes of CO2e
between the beginning of 2001 and the end of 2004.
- Aluminerie Alouette Inc. will cut its emissions by 12.3 percent on average
over the 1996–2004 period.
- The industry reports that on average it has reduced its CO2e
intensity per tonne of aluminum produced from 5.59 tonnes of
CO2e per tonne of aluminum in 1990 to 3.94 in 2000.
ACTIONS
An industrial sector that supports the objectives of the Kyoto Protocol, the Canadian aluminum industry has undertaken numerous actions to reduce GHG emissions and improve energy efficiency.
A framework agreement on voluntary reductions of GHG emissions between the
province of Quebec and the aluminum industry was signed in January 2002. The
agreement calls for GHG reductions of approximately 200 000 tonnes of CO2e
for the sector between 2002 and 2007. Energy intensity improvements and attention
to product life-cycle issues are also built into the agreement.
Following the signing, aluminum producers began negotiations to conclude detailed
individual agreements. In June 2002, Alcoa Inc. committed to voluntary reductions
of GHG emissions for its smelters in Baie-Comeau, Bécancour and Deschambault
and for its rod plant in Bécancour. Under its agreement with the Quebec
provincial government, Alcoa will cut its annual emissions by 200 000 tonnes
of CO2e between the beginning of 2001 and the end of 2004, with furtherreductions
planned before the agreement expires at the end of 2007.
In October 2002, Alcan Inc. agreed to voluntarily reduce GHG emissions from
its six smelters in the province of Quebec, its aluminum plant in Vaudreuil,
and its port facilities, power generation plants and railway operations. Under
the agreement, Alcan will reduce total annual emissions from these facilities
by 285 000 tonnes of CO2e by the end of 2003 compared with
a baseline year of 1999.
Aluminerie Alouette Inc. signed an agreement with the Quebec provincial government
in February 2003. This agreement calls for the company to reduce its GHG emissions
by an average of 12.3 percent for the period 1996–2004 – a total
reduction of 69 000 tonnes of CO2e.
These voluntary agreements demonstrate that aluminum producers recognize the opportunity to build on the industrys track record of emissions reductions, which began in 1990.
Canadas aluminum producers have also included energy efficiency issues in their corporate communications programs. For example, Alcan published a comprehensive report entitled Alcans Journey Towards Sustainability, which discusses key business issues, including the environment and energy management.
In its 2001 publication Life Magazine, Alcoa dedicates a full section to energy, including a discussion of energy efficiency programs within the company and energy development projects. The publication presents a course of action, which the company believes will lead to a better quality of life.
Aluminerie Alouettes report De concert avec le milieu, a booklet on taking environmental considerations into account, explains how the use of new cathode block material and the development of improved cast iron contributes to the overall energy efficiency of its smelters. The company has also modified its administrative buildings heating system and programmed its thermostats, saving about 50 000 litres of heating oil per month in the winter heating season.
ACHIEVEMENTS
Primary aluminum production increased by 73 percent between 1990 and 2002,
with the industrys GHG emissions remaining stable. Over the same period,
the sector reduced its GHG emissions per unit of production by more than 36
percent of CO2e per tonne produced. Since 1990, the aluminum sector
has reduced its emissions of tetrafluoroethane (CF4) and hexafluoroethane
(C2F6) by approximately 52 percent.
According to industry forecasts, the production of primary aluminum
in Canada should increase by 1.4 million tonnes by 2010, leading to process
emissions increases of 3 million tonnes of CO2e. On average, the
industry reduced its CO2e intensity from 5.59 tonnes of CO2e
per tonne of aluminum in 1990 to 3.94 in 2000. The industry expects that
by 2010, overall intensity will be reduced further to 3.07 or even lower.
CHALLENGES
The industry will continue to make ongoing energy efficiency
gains by implementing enhanced manufacturing processes and advanced energy management
practices. However, the construction of new, state-of-the-art smelters, which
currently have a carbon intensity of less than 2 tonnes of CO2e per
tonne of production, and the retrofit of some other smelters will have the most
dramatic impact on the sectors overall energy efficiency and GHG emissions.
Modern facilities currently account for 72 percent of total aluminum production.
However, building new facilities requires sizable capital investments
and the availability of large quantities of electricity at favourable prices.
The combination of low aluminum prices and high energy costs that are typical
of todays marketplace will make it difficult for the industry to generate
the funds needed to finance these investments. Developing workable economic
models for the continued development of new facilities remains a significant
challenge for the industry.
Brewery
Profile Brewing in Canada is a diverse and modern industry that is
actively pursuing ambitious energy efficiency targets. The industry is made
up of two national brewing companies, several regional brewers and numerous
microbreweries. Together, these establishments, which employ more than 14 000
workers in 83 breweries across Canada, produced about 24 million hectolitres
of beer in 2001.
Performance Highlights
- Enhanced maintenance, monitoring and control procedures are enabling brewers
to identify and implement energy-saving measures.
- Compared with production in 1990, the industry has reduced its energy consumption
by more than 19 percent per hectolitre of beer produced.
- The industry remains committed to an annual energy reduction of 1 percent
over the next two years and, beginning in 2004, 1.5 percent annually through
2006.
ACTIONS
Canadas brewers continue to pursue energy efficiency by improving their beer-making processes, plant infrastructure and packaging activities. Capital investment in new bottle-washing and pasteurization equipment will help the sector improve energy efficiency and reduce GHG emissions. Continuously advancing monitoring, control and maintenance procedures are enabling brewers to identify and implement opportunities for improvement. These measures include advances in production process systems, waste-trimming enhancements to post-run shutdown procedures and upgrades to heating, ventilating, lighting and air-conditioning systems. Companies are working to entrench accountability for energy and utility management throughout their organizations, creating an environment that supports efforts to implement and sustain energy efficiency projects and practices.
For example, energy planning, monitoring and targeting, departmental accountability and employee participation are being combined in a comprehensive effort to improve energy efficiency. Brewers are using energy audits and staff accountability to focus employee attention on conservation and on opportunities to reduce energy waste. Extensive benchmarking helps to identify and implement a best-practices approach. Capital projects are assessed to ensure that they are designed for – and incorporate – energy efficiency strategies.
On the distribution and sales side of the sector, The Beer Store installed special computers in trucks in its fleet in London, Ontario, which reduced idling, saved fuel and extended the trucks working life. Thanks to this pilot project, the fleet reduced its idling time by 3000 hours, or 51 percent, saving more than 32 000 litres of fuel and reducing emissions by more than 114 tonnes. The projects success earned The Beer Store a Fleet Excellence Award from the national Repair Our Air – Fleet Challenge.
ACHIEVEMENTS
The Canadian brewing industry has made significant progress in increasing energy efficiency. Compared with 1990, the industry now uses over 19 percent less energy to produce a hectolitre of beer. In 2001, the industry consumed 6003 TJ of energy, 72 percent of which was natural gas, 7 percent fuel oil and 20 percent electricity. The brewing industry is committed to an energy-reduction target of 1 percent per year over the next two years and, beginning in 2004, 1.5 percent annually through 2006.
CHALLENGES
Canadian brewers continue to identify ways to reduce expenditures
while maintaining quality and innovation. In the face of increased international
competition and the growth of other non-beer beverage categories, the industry
combines innovative marketing strategies with prudent cost-management programs.
Canadas brewers also have successfully pursued international markets and
made Canada one of the top beer exporters in the world. Several companies have
negotiated agreements to produce products in Canada that would otherwise be
imported. Brands available in the Canadian market range from traditional ales
and lagers to new beverages that feature varying strengths of alcohol, distinctive
flavours and unique textures. Clearly, the industry is well positioned to meet
its competition head-on.
Because energy is a substantial cost component in the brewing
process, finding ways to improve energy efficiency will continue to be a priority
for Canadas brewers.
Cement
Profile The cement industry is the cornerstone of Canadas domestic construction industries and a significant exporter that contributes substantially to the countrys balance of payments. According to Statistics Canada figures, the industrys eight companies, which operate 16 processing facilities, produced 12.7 million tonnes of clinker and 12.8 million tonnes of cement in 2001.
Performance Highlights
- Ciment Québec Inc. saved electricity by modifying the way it transports raw material from the roller mill to the kiln.
- Lafarge Canada Inc. continues to invest in energy efficiency in plants across Canada.
- The use of the cement replacement GranCem® is enabling St.
Lawrence Cement Inc. to accommodate much of its market growth without increasing
energy consumption.
- Lehigh Inland Cement Limited has implemented a program to replace aging equipment with more energy-efficient alternatives and has been working to improve the energy efficiency of its compressed-air systems and process fans.
- The cement sectors use of waste fuel declined slightly to 3038 terajoules, which is 6.1 percent of the total energy (excluding electricity) used by the sector in 2001.
- The sector anticipates a 2 percent decrease in GHG intensity per unit of production by 2010.
ACTIONS
Cement manufacturers continue to take action to improve energy efficiency. For example, Ciment Québec Inc. of Saint-Basile, Quebec, has modified the way it transports raw material from the roller mill to the kiln. Before the modification, material was moved by two compressed-air pumps, drawing 575 kW of electricity. The new system employs an electric elevator that uses only 75 kW to operate and achieves the same objective.
A new kiln at Lafarge Canada Inc.s plant in Richmond, British Columbia, reached its energy intensity targets in 2001, using 3058 MJ per tonne of clinker. Before the new kiln was installed, fuel consumed by its two wet process kilns was 6307 MJ per tonne of clinker. At its plant in Exshaw, Alberta, Lafarge made major investments to equip the facility to burn coal, including the installation of a coal mill system to supply ground coal to both of the facilitys kilns. The company also installed new dust collectors to further reduce emissions. At Lafarges plant in Kamloops, British Columbia, chain-system upgrades, the implementation of combustion-control expert systems, cooler-optimization exercises and an easier-to-burn raw mix enabled the facility to reduce its fuel consumption to 4249 MJ from 4533 MJ per tonne of clinker.
St. Lawrence Cement Inc. and St. Marys Cement are joint owners of Great Lakes Slag, a venture in Sault Ste. Marie, Ontario, that processes granulated steel mill blast furnace slag for use as a partial replacement for cement. St. Lawrence Cement grinds the granulated slag at its plant in Mississauga, Ontario, to produce GranCem®, a supplementary cementitious material that can reduce the proportion of Portland cement used in the production of concrete. GranCem®, which may be blended in a mixture with cement in a ratio of 1 to 3 or 1 to 4, reduces the embodied energy of the final concrete product by about 20 percent of the contained energy of the final concrete. Used properly, GranCem® also improves the mechanical properties and durability of concrete. GranCem® production enables St. Lawrence Cement to accommodate much of its market growth without corresponding increases in energy consumption.
St. Lawrence Cement is also using waste materials to provide part of the energy
component in cement. The company has installed a $6 million granular fuel system
at its facility in Joliette, Quebec, which will allow the plant to burn waste
material such as sawdust, tire fluff, rubber chips and dried sewage sludge in
two of its four kilns. The new system will enable the company to offset the
burning of about 42 000 tonnes of coal and coke fuel per year by co-processing
material that would otherwise be incinerated or sent to landfill.
Lehigh Inland Cement Limiteds facility in Edmonton, Alberta, has established a corporate energy management plan and implemented a program to replace aging equipment with alternatives that are more energy efficient. In recent years, the company has focused on upgrading its motor drive systems and production process equipment. In 2002, Inland installed power-monitoring equipment to monitor and reduce electricity consumption in all process areas of its plant.
Lehigh Inland has been working to improve the energy efficiency of its compressed-air systems and process fans. The company continues to upgrade fans with replacements that are more modern and energy efficient and has launched efforts to improve plant productivity.
The Cement Sector Task Forces recently established energy
committee is now working to help sector companies share information and develop
joint actions on issues such as power deregulation, energy trends, increased
use of waste fuel, CO2 emissions and demand.
ACHIEVEMENTS
Canadas cement sector has reduced its fuel consumption
by 30 percent per tonne between 1970 and 1990, principally by implementing major
process improvements, according to the Cement Association of Canada (CAC). Kiln
efficiency improved by 11 percent between 1990 and 2000, and direct emissions
of CO2 per tonne of cementitious product were 8 percent lower
over the same period. The CAC projects a further 2 percent decrease in GHG intensity
per unit of production by 2010.
Since 1990, the cement sector has managed to reduce its overall
energy intensity by 11.1 percent while demand for its products increased 19.3
percent. The expanded use of power monitoring, targeting and other systems and
technologies will combine with ongoing plant modernizations to produce further
energy efficiency improvements within the sector.
The cement industry continues to work closely with governments
and other industries to promote concrete solutions to environmental
issues and sustainable, durable infrastructure. For example, the intelligent
use of cement-based products in the transportation, residential housing and
agriculture sectors can improve energy efficiency and reduce GHG emissions in
these sectors, thereby supporting Canadas Kyoto goals.
CHALLENGES
With energy making up a substantial portion of the cost of producing
cement, energy consumption is a significant competitive issue within the cement
industry. Although the importance of energy has traditionally led many companies
to treat energy cost-reduction information as confidential, there is a growing
consensus that the benefits of sector-wide cooperation outweigh the competitive
risks. The CAC believes that this shift in attitude will lead to broader information
sharing and cooperation among sector companies.
There is concern in Canadas cement sector, especially among
major exporters, that the current slowdown in the U.S. economy, especially in
construction, will have an increasingly adverse impact on energy efficiency.
Energy intensive cement production processes are most efficient when operating
as close as possible to full capacity, and weakness in demand can trigger corresponding
declines in cement plant throughput.
Long-standing discussions among waste producers and waste users
have not yet yielded an appropriate methodology to establish emissions-related
credits for waste material use in the production of cement. Moreover, the potential
implementation of economic instruments such as a carbon tax could seriously
impair Canadas cement exports.
Chemical
Profile The chemical sector encompasses a diverse industry that produces
organic and inorganic chemicals, plastics and synthetic resins. The chemical
industry is the third largest in Canada in terms of value of shipments. Companies
in this sector operate 775 facilities Canada-wide, directly employing more than
24 000 people, with an annual payroll of $1.3 billion. The Canadian Chemical
Producers Association (CCPA) is the trade association that represents
manufacturers in this sector. Its member companies produce more than 90 percent
of industrial chemicals manufactured in Canada.
Performance Highlights
- NOVA Chemicals Corporations cogeneration power plant in Joffre, Alberta, has enabled the company to reduce net emissions by 20 percent in 2001.
- Petresa Canada decreased its CO2e emissions per unit of
production
by 2.6 percent in 2001.
- In building a new monoethylene glycol plant, Shell Chemicals Canada Ltd. incorporated a number of features aimed at minimizing or eliminating GHG emissions.
ACTIONS
The CCPAs Responsible Care® initiative, which guides chemical companies in their environmental activities, incorporates detailed principles for reducing emissions. In keeping with Responsible Care® guidelines, CCPA member companies continued to pursue actions to promote energy efficiency in 2001. For example, NOVA Chemicals Corporations electricity/steam cogeneration power plant at the companys manufacturing facility in Joffre, Alberta, continues to help move toward lower total GHG emissions. Compared with conventional electricity sources, the cogeneration facility produces about half of the emissions per unit of output and has enabled the company to reduce net emissions by 20 percent in 2001 compared with 2000. The company projects that by 2004 its net emissions will be significantly below 1990 levels. NOVA Chemicals goal is to reduce its net emissions intensity from its Canadian chemical facilities by 25 percent below 1999 levels by 2005.
Petresa Canada, based in Bécancour, Quebec, has made considerable effort
to reduce its GHG emissions. The ISO 14001 registered company regularly monitors
and audits its GHG emissions and continuously seeks ways to improve its
performance. In 2001, Petresa decreased its CO2e emissions
per unit of production by 2.6 percent. Since its plant began operations in 1995,
the company has reduced its emissions intensity by 20 percent.
In building its new monoethylene glycol plant at its facility in Scotford,
Alberta, Shell Chemicals Canada Ltd. incorporated a number of features aimed
at minimizing or eliminating GHG emissions. The company integrated heating systems
at its facilities, partnered with Air Liquide Canada Inc. to recover and sell
waste CO2, and established a cogeneration facility to produce electricity
and heat. In its first part-year of operation in 2000, the plant reduced its
total emissions ratio to 0.94 tonne of CO2e per tonne of product.
When the last phases of plant integration were completed in 2001, the
total emissions ratio had dropped to 0.72 tonne. Emissions projections through
2007 predict further reductions in the coming years.
At Methanex Corporation, operational excellence is a key component in emissions-reduction
efforts. By instituting stringent preventive and predictive maintenance programs,
the company has significantly reduced the frequency of energy-wasting plant
shutdowns, raising reliability to an impressive 98.36 percent in 2001. Methanex
has also developed procedures to direct process gases into fuel systems during
shutdown periods, thereby significantly reducing gas flaring and venting.
Between 1996 and 2001, Methanex reduced its CO2 emissions per
tonne of production from 0.76 tonne to 0.67 tonne.
Dow Chemical Canada Inc. takes a broad view of emissions reduction. Besides establishing new cogeneration facilities at its plants in Fort Saskatchewan, Alberta, and Sarnia, Ontario, Dow is pioneering the use of wheat straw as a wood replacement in the manufacture of composite panel building materials. This helps to preserve forests and eliminate the needless burning of agricultural waste. Dow also sells hydrogen, a by-product previously burned as a fuel, to a customer whose process requires hydrogen. Dow will replace the energy lost by the sale with natural gas (raising its own GHG emissions), but the customer will no longer need to manufacture hydrogen – a trade-off that produces a net benefit to the environment.
ACHIEVEMENTS
In 2001 the chemical sectors energy consumption totalled
189 649 TJ. According to data released in the CCPAs latest Responsible
Care® report, from 1992 to 2001, member companies
CO2 emissions levels increased by 13 percent, and emissions
per unit of output decreased CO2 14 percent. However, product output
increased by 31 percent over the same period. Total GHG emissions in 2001, expressed
as CO2 equivalents, decreased by 40 percent from 1992 levels.
In 2001, member companies emissions of methane declined
by 14.9 percent compared with 2000, continuing a seven-year reduction trend.
Similarly, emissions of N2O continued to decline by 11.4 percent
– a total decrease of 91.7 percent since 1992. Measured in terms of global
warming potential, emissions in 2001 were 1 percent higher than in 2000 but
40 percent lower than in 1992.
The CCPA estimates that total CO2 emissions per unit
of output will decrease by an additional 3 percent by 2006, 16 percent less
than in 1992. Including cogeneration, members expect a 21 percent increase in
total emissions of CO2 by 2006 compared with 1992. By 2006, GHG emissions,
expressed in terms of global warming potential per unit of output, are projected
to decrease by 58 percent compared with 1992, or by 65 percent when excluding
cogeneration emissions.
CHALLENGES
CCPA members are guided by technological, economic and legislative
considerations as they pursue improved environmental performance and enhanced
global competitiveness. Members face an ongoing challenge to reduce GHG emissions
while accommodating ongoing growth in their operations and their output. Canadas
participation in the Kyoto Protocol has made this challenge more complex.
It is no surprise that as production levels increase, the energy
requirements of CCPA members have also increased. However, despite the pressures
of growth, many member companies have been able to reduce their CO2 emissions
per unit of product. As integral players in an international market, Canadian
facilities must continually invest capital to remain competitive with other
regions. These investments frequently affect energy efficiency and GHG emissions.
The chemical industrys continuing growth makes it likely
that, although CO2 emissions per unit of output will continue
to improve, total CO2 emissions will grow. The dramatic improvements already
made through application of cogeneration and N2O abatement technologies
will be difficult to replicate.
Construction
Profile The construction sector is Canadas largest industry,
comprising a diverse array of companies whose work touches every economic sector
and region of the country. The construction industry employs a work force of
more than 900 000 and generates $134 billion in annual economic activity –
about 12 percent of Canadas GDP.
Performance Highlights
- The Canadian Construction Association (CCA) joined CIPEC in December 2001.
- The construction industry has been a leader among industrial sectors in adopting
and implementing environmentally sound business practices.
- CCA has actively participated in the Government of Canadas consultations concerning the ratification of the Kyoto Protocol.
- Following GDP growth of 3.5 percent in 2001 and 3.9 percent in 2002, the industry forecasts growth of 1.9 percent in 2003.
- Economic considerations play a major role in the industrys ability to invest in energy efficiency.
ACTIONS
The construction sector is a new participant in CIPEC, welcomed into the voluntary
initiative in December 2001, when the Canadian Construction Association (CCA)
joined the program. CCA is the national voice of the construction industry,
with a membership of more than 20 000 enterprises. Members work at everything
from design and management to road building and general contracting.
The construction industry has been a leader among industrial sectors in adopting and implementing environmentally sound business practices. Sector companies are well aware of the damage that human-induced climate change could cause our planet, our country and our economy.
CCA endorses the concept of sustainable development and recognizes the need to balance environmental and economic considerations in the decision-making process when planning new developments. CCA accepts the need for a fair, equitable and expedient environmental assessment and review process that is developed with the help of industry input. As a result, CCA has actively participated in the Government of Canadas consultations concerning the ratification of the Kyoto Protocol. CCA believes that Canadas response to climate change should adhere to certain basic principles:
- Measures to achieve GHG-reduction objectives must be voluntary rather than mandatory.
- The approach taken must be balanced, not unduly favouring one region or industrial sector over another.
- Measures must ensure that Canadas economy remains competitive in the global marketplace, particularly with regard to the United States.
- The climate change program should recognize that infrastructure improvements play a major role in improving Canadas environmental performance and should include incentives for building renovations/retrofits and for improving essential physical infrastructure such as roads, highways and sewage treatment.
- Measures should take into consideration the current and past efforts of specific industries. For example, the construction industry has made significant reductions in GHG emissions over the past decade.
ACHIEVEMENTS
Energy consumption in the sector is directly related to levels of construction activity. Following GDP growth of 3.5 percent in 2001 and 3.9 percent in 2002, the industry forecasts growth of 1.9 percent in 2003, 2.6 percent in 2004 and only 1.3 percent in 2005. A strong residential construction market caused higher overall growth in 2002. However, anticipated higher interest rates and a lessening of demand will reduce residential construction growth, resulting in slower overall sector growth through 2005.
Non-residential construction is expected to record growth in
the 1.4 percent range in 2003, with a variance among industry sub-sectors. The
GDP of non-residential building structures will increase by 3.8 percent (led
by a 10.9 percent increase in industrial buildings), and GDP growth for roads
and highways will be flat with growth of only 0.4 percent. Some sectors, such
as oil, gas and utility structures, will record negative GDP growth in 2003;
construction GDP in other sectors, such as mining and communications, will reflect
robust growth. After strong construction intentions in 2001 and 2002, government
construction intentions will drop to growth of 0.6 percent in 2003.
CHALLENGES
The construction sector is committed to improving its energy
efficiency. Sector companies continue to upgrade their vehicle fleets and motorized
machinery with modern vehicles that are more fuel efficient. They are also continually
on the lookout for more energy-efficient materials and practices – elements
that can lower costs and reduce GHG emissions. However, economic considerations
play a major role in the industrys ability to invest in energy efficiency.
Motorized vehicles, machinery and heavy equipment are expensive, requiring companies
to make major capital commitments. Given the competitiveness and unpredictability
of the construction industry, the desire to upgrade must compete with the need
to maximize the return on existing machinery. Balancing these needs often impedes
substantial advances in energy efficiency.
Similarly, the sectors diversity makes it difficult to
develop energy efficiency programs that are meaningful and practical. What works
in constructing roads may not apply to building factories and bridges or to
designing and engineering new projects. However, CCA is committed to encouraging
its members to become Industrial Energy Innovators and to take advantage of
opportunities to improve their energy efficiency. CCA believes that over time
its participation in CIPEC will help to accelerate improvements in the environmental
performance of Canadas construction industry.
Dairy
Profile Canadas dairy product manufacturing sector spans Canada from coast to coast. Operating more than 270 facilities and employing 20 500 people, Canadas dairies processed more than 73 million hectolitres of raw milk and shipped an estimated $5.9 billion worth of milk products in 2000.
Performance Highlights
- Saputo Inc. has undertaken a series of small projects aimed at reducing energy consumption.
- Parmalat Dairy & Bakery Inc. has developed a corporate energy strategy that aims to lower energy intensity 10 percent by 2006 compared with 2001 levels.
- A major expansion to William Nielson Ltd.s dairy plant in Ottawa, Ontario, incorporates a range of energy efficiency design features.
- Nestlé Canada Inc. has installed an Electroflow system at its dairy plant in Sherbrooke, Quebec.
- An Electroflow system at the Atwood Cheese Company Limited reduced electricity consumption by 5 percent in the systems first six months of operation.
- Gay Lea Foods Co-operative Limited uses a system that captures wastewater for cooling.
- In 2001, the sectors total energy consumption was 12 434 TJ, up from
11 952 TJ in 1990.
- The sectors energy intensity is increasing because of consumer demand for products that require more energy to produce.
ACTIONS
Energy is a key component in milk processing. Typically, dairies employ electrical, thermal and water-based energy systems in their facilities for processes such as pasteurization, churning, washing, packaging, cooling, freezing and drying. Sector companies recognize the importance of energy efficiency in controlling costs and continue to initiate programs to better manage their energy consumption. Dairies have implemented energy-saving programs to encourage recovery and re-use of hot water, recycle tanker wash water, upgrade lighting systems and motors, and minimize air and water leakage. The following are examples of recent energy efficiency efforts by individual companies.
Saputo Inc.s Milk Division in Edmonton, Alberta, has undertaken a series of small projects aimed at reducing energy consumption. For example, the plant acted to reduce steam generation and took measures to maximize the use of permeate for heating and cooling, thereby offsetting reliance on ammonia refrigerants and boiler-generated steam.
Parmalat Dairy & Bakery Inc. has developed a corporate energy strategy that focuses on capital and continuous improvement opportunities, with the goal of reducing energy intensity by 10 percent below 2001 levels by 2006. Parmalats energy and environmental teams are working together more closely to establish energy and emissions baselines. Parmalat is also developing a standard energy tracking and forecasting system.
A major expansion to William Nielson Ltd.s dairy plant in Ottawa, Ontario, includes energy efficiency components such as skylights and metal halide lights. The company is also exploring the possibility of installing SOLARWALL® metal wall cladding and high-efficiency boilers with economizers and adjustable arms. Elsewhere in the plant, Nielson downsized its steam production system to bring capacity in line with demand, enabling the company to replace an older boiler with a more energy-efficient alternative. The company is also converting to high-efficiency motors and has switched its fleet of propane-powered machines to natural gas.
Nestlé Canada Inc. has installed an Electroflow system at its dairy plant in Sherbrooke, Quebec. The system, which balances electricity loads at periods of peak demand and downtime, has dramatically reduced the plants electricity consumption. Nestlé has also implemented a performance contracting program at the plant to manage its refrigeration and airflow programs.
The Atwood Cheese Company Limited has also installed an Electroflow system at its dairy plant in Atwood, Ontario. In the systems first six months of operation, it generated more than 5 percent savings in electricity costs. Atwood has also increased motor efficiency at the plant and modified its processes to reduce spikes in power consumption.
Gay Lea Foods Co-operative Limited uses a system that reduces
water consumption through an enclosed circulation loop, captures energy from
re-circulating water for cooling and reclaims cheese fines, which previously
were discharged into the sewage system. The system uses an ammonia membrane
(welded plate) heat exchanger that keeps process water in an enclosed system.
This decreases water consumption by 80 percent, reduces the surcharge for biological
oxygen demand (BOD) by 50 percent and decreases electricity consumption by 50
percent. The system also reclaims lost cheese solids from the water, increasing
process yield by 0.6 percent.
ACHIEVEMENTS
Energy efficiency efforts have enabled dairy sector companies
to lower their costs and improve their operating efficiency. Energy data for
the year 2001 are not yet available. In 2000, the sectors total energy
consumption was 12 434 TJ, up slightly from the 1990 level of 11 952 TJ. The
amount of milk and cream produced in 2000 increased from 1990 levels. Since
1996, consumer demand for more energy intensive products has offset the sectors
progress in improving energy efficiency. Despite this upward pressure on energy
consumption, the energy consumed per hectolitre of output decreased in 2000
to 16.8 GJ from 18.5 GJ in 1999.
CHALLENGES
Following the disbanding of the National Dairy Council of Canada
in 2001, the sector has re-established an active Dairy Sector Task Force and
is now recruiting provincial dairy associations. Begun in 2002, this work is
now showing results and should expand the CIPEC presence within the sector in
the years to come. A recent study has shown that sector companies that are not
CIPEC participants have increased their energy consumption at double the rate
of those that do participate in CIPEC. This makes it essential for the task
force to broaden its reach within the sector.
For many dairy product manufacturers, unstable energy prices
and the scarcity of capital make developing a sound business case for investments
in energy efficiency a significant challenge. Moreover, the rationalization
and competitive pressures that have emerged in recent years continue to drive
the industry to downsize facilities in the face of static sales.
Todays marketplace demands that dairies provide innovative,
high-quality and value-added products at the best possible prices. Unfortunately,
creating these value-added products often conflicts with efforts to improve
energy efficiency. Manufacturers have already made the most of the low-cost
and no-cost energy efficiency improvements available to them. Their greatest
challenge in the foreseeable future is to make the more costly, payback-delayed
improvements that will further advance energy efficiency.
Electrical and Electronics
Profile The electrical and electronics sector includes
a diverse array of companies that produce electrical appliances, lighting, consumer
electronics, communications and electronic equipment, cabling, office equipment,
industrial equipment and other electrical products. These
companies operate more than 1400 facilities and employ more than 100 000 workers
across Canada. The industry is a major exporter
and a vital, growing contributor to the national economy.
Performance Highlights
- The electrical and electronics sector is Canadas least energy intensive industry.
- Litton Systems Canada Ltd. retrofitted its 45-year-old facility in Toronto, Ontario, with the latest in energy-efficient lighting systems.
- In 2001 IBM Canada Ltd. achieved exceptional energy conservation results, reducing overall energy consumption by 2.4 percent, despite an 11 percent increase in occupied area.
- Between 1990 and the end of 2001, the sectors energy consumption remained relatively constant despite substantial growth in production.
- The sector has decreased its energy intensity by nearly 70 percent from 1990 through 2001.
- The industry anticipates a significant decrease in energy consumption in the coming years.
- Many sector products decreaseCO2 emissions by increasing
the energy efficiency of other industries.
ACTIONS
Across the electrical and electronics sector, companies are strong proponents of environmental sustainability and energy efficiency. Although the industry is one of Canadas least energy intensive, many companies have incorporated energy efficiency programs into their efforts to control costs.
For example, Litton Systems Canada Ltd. retrofitted its 45-year-old facility in Toronto, Ontario, with the latest in energy-efficient lighting systems. The comprehensive program included undertaking a building-wide analysis of lighting requirements, carefully selecting the correct lighting system for each functional area and installing a computerized lighting control system. The retrofit is saving Litton approximately 113 000 kWh of electricity per month, or about $100,000 per year.
In September 2001, IBM Canada Ltd. celebrated the opening of its Toronto Software Lab in Markham, Ontario. Housing more than 2300 software developers, engineers and support staff, the property is the third largest research facility in Canada. Energy efficiency, environmental management and wildlife habitat protection were a mandatory part of the facilitys overall design strategy. Energy conservation was built into the lighting and climate systems, and heating and cooling is provided by the local municipalitys first cogeneration plant. These energy initiatives earned the lab a $320,000 incentive through the Commercial Building Incentive Program, which is administered by NRCans Office of Energy Efficiency.
Company-wide, IBM Canadas continuous review of its business has enabled
it to consolidate operations into fewer and larger locations, thus decreasing
costs and saving energy and other resources. Mobility initiatives give employees
the tools needed to work from home, reducing space requirements, energy consumption
and transportation fuel. Currently, 26 percent of the companys staff,
or 4700 employees, do not have dedicated office space. It is estimated that,
with the reduction in travelling to and from work, these employees save 48 tonnes
of pollutants and GHG emissions (including CO2) per year.
In 2001 IBM Canada achieved exceptional energy conservation results, reducing
overall energy consumption by 2.4 percent, despite an 11 percent increase in
occupied area and cutting energy consumption density (MWh/sq. ft. per year)
by 12.85 percent. Energy efficiency measures conserved 26 076 MWh, leading to
2657 tonnes of CO2 emissions avoidance. The cumulative CO2 emissions
reduction from the base year 1990 was 34 863 tonnes by the end of 2001.
ACHIEVEMENTS
Natural gas and electricity satisfy virtually all of the electrical and electronics
industrys energy requirements. In 2001 the industry consumed 10 798 TJ
of energy, representing 0.4 percent of the energy consumed by the mining and
manufacturing sector as a whole and less than 1 percent of total energy-related
manufacturing CO2 emissions. On
average, energy expenditures represent less than 1 percent of the value of the industrys shipments, compared with more than 61 percent for materials and supplies and 16 percent for labour.
Between 1990 and the end of 2001, the sectors energy consumption
remained relatively constant despite substantial growth in production. These
factors have combined to decrease energy intensity by nearly 70 percent. Acquisitions,
mergers and internal rationalization are enabling the industry to realize increased
efficiencies of scale, which are expected to lead to a significant decrease
in energy consumption in the coming years.
Sector companies contribute to Canadas overall energy efficiency
and GHG-reduction programs in other ways. Many sector products, from oil-refinery
control systems to high-efficiency motors and lighting, are used by companies
in other sectors to decrease their energy consumption.
CHALLENGES
The energy management challenges faced by the electrical and
electronics sector are largely the result of global economic factors and the
subsequent decrease in the availability of investment capital for energy conservation
projects. Around the world, prices are restrained by excess global manufacturing
capacity, soft demand, weak job markets, low interest rates and productivity
gains. A weak corporate profit picture inevitably leads to tighter capital investment
controls, especially for spending on machinery and equipment. An end to the
contraction trend in the sector may be close, but a full recovery is likely
several months away.
Nevertheless, the electrical and electronics sector continues
to lead other manufacturing sectors in decreasing its energy use and intensity.
This positive trend is a result of productivity gains and greater efficiencies
within manufacturing operations. In addition, the industry continues to focus
its efforts on establishing new standards and increasing the energy efficiency
of its products.
Electricity Generation
Profile The electricity generation sector produces the
electrical energy that powers industry, business and homes across Canada. Using
water, fossil fuel, nuclear energy and alternative energy sources, the sector
produced 539 TWh in 2000, meeting Canadas domestic energy
needs while earning more than $1 billion in export revenues.
Performance Highlights
- TransAlta Utilities Corporation has established a $100 million Sustainable Development Research and Investment Fund.
- BC Hydro Corporation plans to build a 20-MW green energy demonstration project for Vancouver Island.
- ATCO Electric has launched a new energy management service for its customers.
- New radiant heaters installed by Canadian Niagara Power Company Limited have led to an energy input reduction of 15 percent.
- Manitoba Hydro launched the Power Smart Eco-Efficiency Solutions Program to help industrial customers improve their energy efficiency and environmental performance.
- An 11-MW wind power generation project in Saskatchewan now provides half of the electricity used in Government of Canada facilities in that province.
- For the third consecutive year, TransAlta was listed on the Dow Jones Sustainability World Index.
The sector is currently working with NRCans Office of Energy Efficiency
to develop indices and figures.
ACTIONS
The industry continues to support the Canadian Electricity Associations (CEAs) Environmental Commitment and Responsibility (ECR) Program. The ECR Program was established in 1997 to report on environmental performance on a national, industry-wide basis. Participation in the ECR Program became a requirement of corporate utility CEA membership in 1998.
Individual electricity producers are taking significant steps toward energy efficiency and reducing the industrys impact on the environment. For example, Albertas TransAlta Utilities Corporation has established a $100 million Sustainable Development Research and Investment Fund for investments in renewable energy, carbon-offset projects and the research and development of clean coal technology.
In June 2001, BC Hydro Corporation announced that it plans to build a 20-MW green energy demonstration project for Vancouver Island. The project will produce 10 MW of electricity from wind, 6 to 8 MW through micro-hydro and 3 to 4 MW from ocean waves.
ATCO Electric, in partnership with ATCO Gas, has launched a new energy management service. ATCO EnergySense is an innovative energy management hot-line and on-site evaluation service for residential, farm and commercial customers. Company advisors answer telephone inquiries, make on-site visits and arrange for cost-effective home energy management audits (through a partnership with NRCans Office of Energy Efficiency). Customers can also visit the interactive ATCO EnergySense House, an on-line energy audit tool.
An energy audit by Ontarios Canadian Niagara Power Company Limited in 2000 identified opportunities for improving efficiency in the companys lighting and heating systems. The company replaced unit heaters in the service area garage with gas-fired tube heaters. The new heaters emit radiant heat, decreasing the amount of heated air lost when doors are opened and increasing heating effectiveness and occupant comfort. Installation of the new heaters has led to an energy input reduction of 15 percent.
In 2001, Manitoba Hydro launched the Power Smart Eco-Efficiency Solutions Program in partnership with NRCan, Environment Canada, National Research Council Canada and Manitoba Conservation. The pilot program will identify and help industrial customers to implement measures in order to improve their energy efficiency and environmental performance.
In April 2001, the province of Saskatchewan entered into an agreement with the Government of Canada, Enbridge Inc. and Suncor Energy Inc. to develop the $20 million Sunbridge Wind Power Project, located five kilometres southeast of Gull Lake, Saskatchewan. The 11-MW project, completed in 2002, provides half of the energy used by facilities owned and operated by the Government of Canada in Saskatchewan. A second Saskatchewan wind power project was scheduled for completion in 2002, thanks to financial commitments from the provincial government and SaskPower. The 5.3-MW project will enable SaskPower to offer EcoLogo-certified green power, which will meet or exceed all government and industry safety and performance standards for renewable energy.
For the third consecutive year, the Alberta energy company TransAlta
was listed on the Dow Jones Sustainability World Index. Companies are selected
for the index based on a rigorous assessment that includes evaluation of social
and environmental factors and economic performance. TransAlta was one of only
four North American power generation companies to be included in this index
of the worlds most sustainable companies. TransAlta has invested more
than $23 million in renewable energy and distributed generation over the last
two years. TransAlta is the first company in Calgary to have the electricity
needs of its corporate headquarters met through wind generation.
ACHIEVEMENTS
The sectors Electricity Metering Accuracy Program is helping
to expand the use of electronic electricity meters. Electronic meters provide
customers with real-time information on energy use and prevailing rates, enabling
them to better manage their energy costs and usage patterns. For electric utilities,
the meters will improve customer satisfaction, reduce operating costs, lower
capital investment requirements in generation and infrastructure, and improve
environmental performance.
CEA is currently undertaking a survey of energy efficiency programs
in the electricity sector. The survey includes all programs aimed at reducing
customer electricity demand and companies efforts to reduce their own
energy use. Initial results indicate that although the Canadian electricity
industry continues to make sizable investments in energy efficiency programs,
the scale and rationale for consumer energy management programs have changed
due to the evolving nature of the industry.
CHALLENGES
Although the electricity generation sector is committed to taking
action on energy efficiency, short-term gains are difficult to achieve. Improvements
are achieved largely by replacing older, less efficient capital stock with new
technology, a process that involves considerable planning and long turnover
cycles. Although such programs deliver substantial, lasting effects, gains do
not come quickly.
All efforts to increase energy efficiency must be balanced with
the need to provide customers with reliable, affordable sources of energy. The
demand for electricity is growing due to economic and population growth and
structural factors such as changing production processes and consumer preferences.
Rising demand will tax the imagination and resources of the electricity generation
sector to find creative new ways to improve energy efficiency.
Fertilizer
Profile Canadas fertilizer industry is one of the worlds
major producers and exporters of nitrogen, potash and sulphur fertilizers, manufacturing
12 percent of the worlds total fertilizer materials. Companies in this
sector operate more than 30 production facilities and are among the worlds
most energy-efficient producers.
Performance Highlights
- The Canadian industry is among the most energy efficient compared with its global competitors.
- In 2001, the Canadian Fertilizer Institute and NRCan initiated a benchmarking study of the fertilizer sector.
- Potash Corporation of Saskatchewan Inc.s (PCSs) Cory Division will cut its energy consumption by using waste steam from an adjacent cogeneration project beginning in 2003.
- PCS is converting operations at its mine in Sussex, New Brunswick, from reliance on oil as a fuel source to natural gas.
- Agrium Inc. commissioned a cogeneration project at its Carseland Nitrogen Operations near Calgary, Alberta, in 2002.
- CF Industries Inc. made a number of energy efficiency improvements at its ammonia and urea production facilities in Medicine Hat, Alberta.
- The sectors fuel energy efficiency in the production of nitrogenous fertilizers has improved by about 16 percent over an 11-year period.
- Nitrogen fertilizer production in Canada increased from 6.8 million tonnes in 1990 to 9.0 million tonnes in 2001.
ACTIONS
Under a contribution agreement with NRCan, the Canadian Fertilizer Institute
(CFI) began the second phase of a benchmarking study of potash production in
2002. Final data collection and analysis is planned for early 2003. Benchmarking
information will enable potash fertilizer producers to assess their energy efficiency
performance against best-in-class operations and to identify areas where further
improvements can be made. CFI plans to launch a similar benchmarking study of
nitrogenous fertilizer production within the next year. To prepare for this
initiative, CFI has already completed a study of CO2 emissions
from ammonia plants around the world and is now reviewing the results.
The year 2002 was the third and final year of CFI-funded research on the use of best management practices to minimize GHG emissions. Conducted in cooperation with the Natural Sciences and Engineering Research Council of Canada, the University of Manitoba and Agriculture and Agri-Food Canada, this research reflects CFIs commitment to stewardship throughout the life cycle of fertilizer products. The final report on this research will be available in the first half of 2003.
Also in 2001, CFI concluded a comprehensive study of carbon sequestration in agricultural soils under various regimes of fertilizer use and agricultural practices. A formal report was issued early in 2002.
Individual companies were also active contributors to the sectors energy
efficiency efforts, including divisions of the Potash Corporation of Saskatchewan
Inc. (PCS). At its Cory Division mine in Saskatchewan, PCS plans to draw waste
steam from an adjacent power plant being constructed by Saskpower International
Inc. and ATCO Ltd. PCS will use the steam in its crystallization process to
produce potash. The cogeneration project will enable the Cory mine to mothball
and eventually decommission an existing steam generation boiler plant, thereby
significantly reducing CO2 emissions. Steam from the project
should be available to the Cory mine in the first half of 2003.
At the Sussex potash mine in New Brunswick, PCS is converting operations from
reliance on oil as a fuel source to natural gas. Slated for completion in the
first half of 2003, the conversion will result in a substantial reduction
in the facilitys CO2 emissions.
A cogeneration project at Agrium Inc.s Carseland Nitrogen Operations near Calgary, Alberta, was commissioned in early 2002. The facility, developed in a joint venture with TransCanada PipeLines Limited, is reducing the need for coal-generated electricity by using gas turbines to produce about 80 MW of electrical power for export into Albertas power grid. The project will reduce GHG emissions by more than 300
000 tonnes of CO2e annually.
CF Industries Inc. has made a number of energy efficiency improvements at the companys ammonia and urea production facilities in Medicine Hat, Alberta. Advances include establishing more efficient ammonia converter intervals and instituting de-bottlenecking and energy-use improvements, particularly in the low-pressure recovery and recycling area of CFs urea plant.
ACHIEVEMENTS
According to results of the Fertilizer Sector Task Force data-quality
project, the sectors production of nitrogenous fertilizers increased from
6.8 million tonnes in 1990 to 9.0 million tonnes in 2001. The task force reports
that the natural gas consumed as fuel in this production was 47 809 TJ in 2001
versus 42 958 TJ in 1990. This represents an improvement in fuel energy efficiency
of approximately 16 percent over the 11-year period.
Based on CIEEDAC data, since 1990, potash production has increased
some 18 percent, for a total of 8.2 kilotonnes in 2001. Although data reported
to CFI by its members indicate greater production values, overall, energy indicators
show an improvement in energy intensity that averages more than 1 percent per
year since 1990.
CHALLENGES
The Canadian fertilizer industry is among the worldwide industrys
lowest GHG emitters per unit of output. However, fertilizer manufacturing requires
significant amounts of natural gas, both as a feedstock and as an energy source.
As a result, the manufacturing and use of fertilizer produces GHG emissions,
primarily CO2. Conversely, the fertilizer industry plays an
important role in carbon sequestration, helping to fix CO2 in
agricultural soils. The industrys products help to create agricultural
sinks, which substantially offset the environmental impact of GHGs released
during the manufacturing process. The industry believes that agricultural sinks
could be a key component of a national short-term approach to reducing
net national CO2 emissions.
As a major energy consumer, Canadas fertilizer industry
is concerned about the impact of Canadas Kyoto commitments. Despite the
Canadian industrys international energy efficiency leadership, the introduction
of climate change policy scenarios could put the industry at considerable risk.
Keeping pace with growth in the worldwide demand for food will drive growth
in fertilizer production and, consequently, the industrys energy consumption.
Current and projected energy efficiencies cannot offset the impact of this growth,
despite the industrys best efforts.
CFI believes that although gains in manufacturing energy efficiency
will come in small increments, major reductions in the GHG impact of fertilizers
can come from improvements in their use. The fertilizer industry supports research
and other efforts that serve to improve the efficiency of fertilizer use and
to foster best-practices approaches within Canadas agricultural community.
The industry believes that the right mix of policies, practices and economic
incentives could have a substantial impact on the global effort to reduce GHG
emissions. Conversely, focusing solely on the energy used by Canadas fertilizer
industry could inadvertently increase global GHG emissions and exacerbate the
worlds food shortages.
Food and Beverage
Profile Canadas food and beverage sector includes
manufacturers that produce a diverse range of products, including meat, dairy,
poultry, fish/seafood, fruit and vegetables, bakery products, oils and sugars,
coffee, snack foods, beer, soft drinks and confections.
Performance Highlights
- Effem Inc., of Bolton, Ontario, has used NRCans Industrial Energy Audit Incentive to identify a number of energy efficiency opportunities.
- Maple Leaf Foods Inc. and its family of companies signed on as Industrial Energy Innovators, adding 97 manufacturing plants to the program.
- Nestlé Canada Inc. conducted steam trap audits at three of its factories.
- Sakai Spice (Canada) Corporation has installed new power factor correction equipment.
- Sun Valley Foods, a division of Cargill Limited, installed a new roof that has a higher R-value at its facility in London, Ontario.
- At its facility in High River, Alberta, Cargill Foods, a division of Cargill Limited, installed an automated monitoring and control system on its cold-water pumps, reducing the number of pumps needed to maintain system pressure.
- Schneider Foods recently completed an energy audit of its facility in Kitchener, Ontario, that identified hundreds of thousands of dollars in potential savings.
- From 1990 to 2001, food processors improved their collective energy intensity by 13.3 percent.
- For the years 2000 to 2005, the sector anticipates an average reduction in energy use of 2.2 percent per year.
ACTIONS
The CIPEC Food and Beverage Sector Task Force meets three to four times a year, prior to CIPEC Task Force Council meetings. Task Force meetings in 2002 were hosted by Food and Consumer Products Manufacturers of Canada – a CIPEC partner since 1999 – and by Nestlé Canada Inc. at its manufacturing facility in Toronto, Ontario. Other sector partners include the Canadian Meat Council, the Baking Association of Canada, the Canadian Council of Grocery Distributors and the sectors newest partner, the Fisheries Council of Canada, which joined in 2001.
Individual food and beverage sector companies continue to take action to improve energy efficiency and minimize GHG emissions. A new Industrial Energy Innovator, Effem Inc. of Bolton, Ontario, has used NRCans Energy Audit Incentive to identify a number of energy efficiency opportunities. The company will achieve energy savings through improvements to its compressed-air, vortex cooling and vacuum systems and through the use of skylights and improved lighting-control systems and practices.
Canada Bread Company Limited in Etobicoke, Ontario, a subsidiary of Maple Leaf Foods Inc., installed a Miniveil air-curtain system on a conveyor that opens to the facilitys refrigerated palletizing room. The air curtain will reduce heat transfer at the opening and help keep the room at its required constant temperature of between 15°C and 21°C. In 2002, Maple Leaf Foods signed on as an Industrial Energy Innovator corporately, thereby making its 92 plants across Canada eligible to take advantage of the programs benefits. For example, Maple Leaf Consumer Foods held a customized Dollars to $ense energy management workshop and energy awareness day in Winnipeg for its Manitoba plants. The companys Canada Bread plants in Ontario participated in a daylong energy symposium in Hamilton. More customized workshops are planned for locations across Canada in 2003.
Nestlé Canada Inc. conducted steam trap audits at three of its factories, leading to efficiency improvements to its steam systems. The company has also continued its program of lighting upgrades and installed a wastewater treatment system.
Sakai Spice (Canada) Corporations mustard processing plant in Lethbridge, Alberta, has made a number of energy efficiency improvements. The company has installed new power factor correction equipment, implemented an energy monitoring system and made improvements to its systems for refrigeration, compressed air, lighting and heating, ventilation and air conditioning. Sakai plans to launch new lighting initiatives and to make improvements to its plants building envelope.
Sun Valley Foods, a division of Cargill Limited, completed a number of energy efficiency projects in 2001. The company replaced the roof of its facility in London, Ontario, with one that has a higher R-value, completed an audit and repair program on its compressed-air system and replaced light switches with lighting sensors in offices and locker rooms. In 2002, Sun Valley also conducted studies on power quality, power factor and refrigeration plant efficiency.
Cargill Foods, a division of Cargill Limited, in High River,
Alberta, installed an automated monitoring and control system on its cold-water
pumps, enabling the company to reduce the number of pumps needed to maintain
system pressure from four to two. Off-line pumps are held in reserve to handle
peak demand.
Schneider Foods recently completed an energy audit of its facility
in Kitchener, Ontario. The audit found that modifications to the steam plant
and reductions in the ventilation rate in the main plant will enable Schneider
to reduce natural gas costs at the boiler plant by about $270,000 per year.
These measures have an estimated payback time of less than one year and can
reduce natural gas consumption by about 20 percent. Modifications to the refrigeration
and ventilation systems could result in electricity and operating savings of
approximately $465,000 per year. The modifications can reduce electricity use
by 15 percent and would pay for themselves in about three years.
ACHIEVEMENTS
Canadas food processing industry continued to increase
its gross output in 2001, but its energy use decreased slightly. The sectors
total energy consumption declined to 111 043 TJ in 2001, compared with 111 736
TJ in 2000, a decrease of 0.6 percent. Over the past 11 years, the sectors
total energy consumption increased by 9.2 percent, from 101 689 TJ in 1990 to
111 043 TJ in 2001, due largely to a significant increase in natural gas consumption.
(These totals include energy use and output data from the dairy and brewery
sectors, which are highlighted separately in this report.)
The sectors use of heavy fuel oil decreased by 16 percent
over the past year. This reduction may be attributed to the leveling off or
reduction in natural gas prices that occurred over the year. Although energy
consumption within the sector has risen, the food industry has made long-term
progress toward better energy efficiency. From 1990 to 2001, food processors
improved their collective energy intensity by 13.3 percent.
CHALLENGES
Based on input from its member companies, the food and beverage
sector has established aggressive targets for energy efficiency. For the years
2000 to 2005, the sector anticipates an average reduction in energy use of 2.2
percent per year. From 2006 to 2010, the sectors goal is an average reduction
of 1.7 percent per year, for a total of 19.5 percent over the next 10 years.
Reaching these goals will not be easy. Many sector companies
are concerned about the impact of Canadas commitment to the Kyoto Protocol
and whether they will be able to meet the agreements emissions requirements.
Among their concerns are that the major changes in energy usage patterns needed
to curb emissions will compromise product quality and may jeopardize their ability
to meet legislated food safety regulations.
Sector members in Ontario are also concerned about immediate
and medium-term electricity supply issues. Electrical cost uncertainties could
lead these companies to re-examine cogeneration systems, which may result in
increases in natural gas or heavy fuel oil consumption.
Foundry
Profile Metal castings are the first step in the value-added manufacturing
chain and are used in the manufacture of most durable goods. Markets and industries
served by foundries include the automotive sector, construction, agriculture,
forestry, mining, pulp and paper, heavy industrial machinery and equipment,
aircraft and aerospace, plumbing, soil pipe, municipal, roads, defence, railways,
petroleum and petrochemical, electrical distribution and a myriad of specialty
markets. There are approximately 200 foundries in Canada, employing 15 000 people
and generating annual sales of more than $2 billion. About 80 percent of the
foundry sectors production is exported.
Performance Highlights
- Canadas 200 foundries employ 15 000 people and generate annual sales of more than $2 billion.
- A Dollars to $ense workshop at Ancast Industries Ltd. has led to annual energy savings of $60,000 to $70,000.
- Bibby-Ste-Croix, in Sainte-Croix, Quebec, has established an energy efficiency committee to oversee the foundrys energy improvement strategy.
- ESCO Limited partnered with BC Hydro Corporation and NRCan in a cost-sharing initiative under BC Hydros Power Smart program.
- NRCans Office of Energy Efficiency and the Canadian Foundry Association launched a pilot foundry audit program with four foundries.
- Crowe Foundry Limited identified potential energy usage reductions of 22 percent and cost savings of 18 percent.
- Grenville Castings Limited identified opportunities to reduce energy consumption and energy costs by 5 percent.
The sector is currently working with NRCans Office of Energy Efficiency to develop indices and figures.
ACTIONS
Individual foundries continued to take action to advance their energy efficiency programs on their own and in partnership with the Canadian Foundry Association and NRCans Office of Energy Efficiency. For example, a Dollars to $ense workshop at Ancast Industries Ltd. of Winnipeg, Manitoba, has led to annual energy savings of $60,000 to $70,000 and stimulated further energy efficiency initiatives at the Winnipeg foundry. Ancast Industries expects to save $80,000 per year by implementing a three-phase, $200,000 project to recover heat from its three coreless induction furnace cooling systems. The company is currently compiling a list of all its potential energy-saving projects, including replacing inefficient lighting, cutting compressed-air requirements, reducing motor horsepower requirements and shutting down unneeded equipment during peak production periods.
Bibby-Ste-Croix, in Sainte-Croix, Quebec, established an energy efficiency committee to oversee the foundrys energy improvement strategy. The foundry also set up a new, energy-efficient melting department, improving the efficiency of furnace usage from 75 to 95 percent. The company installed a power supply control system that automates operations in all modes, from melt to hold, sinter and cold start. This system will save about 10 percent in electricity consumption. The foundry also installed automatic controls for its charging system.
ESCO Limited of Port Coquitlam, British Columbia, partnered with BC Hydro Corporation and NRCan in a cost-sharing initiative under BC Hydros Power Smart program. The foundry identified energy efficiency opportunities in the operation and design of its cleaning room dust collector systems, welding booths and connecting ducts. Upgrading these systems will significantly reduce the horsepower required to run them, saving about 852 650 kWh per year. The foundry is also improving its compressed-air system by eliminating air leaks, shutting down compressors during non-production periods, adding a high-flow valve and reducing operating pressure by 7 percent. These measures are expected to save ESCO 560 750 kWh per year. In total, the cost-sharing initiative will enable the company to achieve a payback period of slightly more than one year.
NRCans Office of Energy Efficiency and the Canadian Foundry Association launched a pilot foundry audit program with four foundries participating: ESCO Limited, Wabi Iron & Steel Corp., Crowe Foundry Limited and Grenville Castings Limited.
Under the audit program, Crowe Foundry Limited of Cambridge, Ontario, identified potential energy use reductions of 22 percent and cost savings of 18 percent through process heat recovery; improvements to heating, ventilation and compressed-air systems; and by establishing an energy monitoring and targeting program.
At its plants in Smiths Falls, Perth and Merrickville, Ontario, Grenville Castings Limited identified opportunities to reduce energy consumption and energy costs by 5 percent by implementing low-cost energy activities. These included changes in compressed-air end-use practices, improving process combustion system efficiencies and changes in equipment schedules.
ACHIEVEMENTS
Motivated by environmental and bottom-line concerns, Canadas
foundries continue to implement energy efficiency improvements and reduce GHG
emissions. Many companies no longer use GHG-generating fuels such as coal, oil
or coke in their operations and have eliminated the use of steam produced by
coal-generated electricity.
Escalating oil, natural gas and electricity costs are leading
a growing number of companies to adopt active programs throughout the industry,
including installing equipment that is more efficient, implementing improved
methods and establishing fuel-switching and waste-energy capture programs. These
actions are bolstering the sectors efforts to improve its energy efficiency.
CHALLENGES
Canadas foundries continue to search for and adopt energy-efficient
equipment and methods. More than ever, foundries are closely monitoring energy
consumption and implementing programs to improve energy efficiency. Efforts
are complicated by the sectors growing business complexity – many
sector companies now go far beyond raw castings and design parts, build tooling,
cast prototypes and make, machine and assemble castings and sub-assemblies.
By necessity, the industrys expanded role has led to increased upward
pressures on energy consumption.
Many foundries, especially in Ontario, are concerned by electricity
prices and electrical distribution charges. Although changes in the energy market
affect all facilities to some extent, foundries that rely more heavily on electricity
are hurt more than those that rely on other fuels. The Canadian Foundry Association
is concerned that higher energy costs will endanger the position of Canadian
foundries in the highly competitive international marketplace.
General Manufacturing
Profile The general manufacturing sector comprises a variety of industries,
including leather, clothing, furniture, printing activities,
construction materials, floor coverings, insulation, glass and glass products,
adhesives, plastics and pharmaceuticals. The sector
encompasses approximately 2000 small, medium and large companies that, combined,
consumed 152 679 TJ of energy in 2001.
Performance Highlights
- Simmons Canada Inc. reports a company-wide decrease in natural gas use in 2001 of 121 869 cubic metres, or 13.8 percent.
- North American Felt installed a heat exchanger in its incinerator chimney, enabling the company to use the previously wasted heat to generate steam.
- Interface Flooring Systems (Canada) Ltd. saved about $400,000 over a six- to eight-month period through energy conservation measures.
- Sintra Inc. installed automatic temperature control systems at its offices in Québec, Sherbrooke and Joliette.
- EMCO Limited has completed the installation of two new high-efficiency boilers at its plant in La Salle, Quebec, reducing the plants natural gas consumption by 7.5 percent.
- Husky Injection Molding Systems Ltd.s GHG emissions in 2001 were 15 percent below 1990 levels, despite the company tripling in size over the same period.
ACTIONS
Across the country, individual sector members, represented by the Eastern, Central and Western General Manufacturing Sector Task Forces, are making important contributions to energy efficiency. For example, Simmons Canada Inc., based in Mississauga, Ontario, has made significant gains in energy efficiency by consolidating its production in the prairie provinces, implementing new procedures for using gas heaters and air make-up units, and by upgrading its lighting systems. Simmons reports a company-wide decrease in its natural gas use in 2001 of 121 869 cubic metres, or 13.8 percent, while its electricity consumption increased by only 0.1 percent. Simmons has targeted an additional improvement of 2 percent in 2002.
The energy efficiency team at Owens Corning Canada Inc.s Scarborough plant in Toronto, Ontario, continues to find ways to keep its operations running with less energy. The plant eliminated compressed-air use in key areas and lowered pressure in its compressed-air system from 115 psi to 106 psi while producing the same output. The team also made modifications to the plants oven/incinerator process. Combined, these actions have produced energy savings of $45,000 per month. At its plant in Edmonton, Alberta, Owens Corning is converting its lift trucks from propane to natural gas, saving the company an estimated $20,000 per year in energy costs.
At its plant in Joliette, Quebec, North American Felt installed a heat exchanger in its incinerator chimney, enabling the company to use the previously wasted heat to generate steam. The company also installed insulation on the incinerator piping system, preserving fume heat and reducing natural gas consumption.
Interface Flooring Systems (Canada) Ltd. will save about $400,000 over a six- to eight-month period through energy conservation measures. The total conversion of Interfaces electricity supplies to green sources in the coming years will net annual savings of about $400,000.
The paving company Sintra Inc. installed automatic temperature-control systems at its regional offices in Québec, Sherbrooke and Joliette that reduce heating and air-conditioning demand (and thus energy consumption) when the buildings are unoccupied. A similar system will be installed at its headquarters in Montréal in 2003.
EMCO Limited has completed the installation of two new high-efficiency boilers at its plant in La Salle, Quebec, reducing the plants natural gas consumption by 7.5 percent. System optimization of its boilers is expected to improve its boiler room energy consumption by an additional 2 percent in 2003. At EMCOs plant in Pont-Rouge, Quebec, the company has reduced energy consumption by converting its main dryer from steam to natural gas. At its plant in Edmonton, Alberta, EMCO modified various gas-fired burners and reviewed the electrical specifications for all its equipment to ensure that correctly sized motors were in place. The company also eliminated non-essential equipment. Edmonton achieved its greatest gains by enclosing its paper mill effluent output, thereby reducing the energy required to heat incoming process water.
Husky Injection Molding Systems Ltd. of Bolton, Ontario, continues
to be a leader in environmental management practices. In 2001, the companys
GHG emissions were 15 percent below 1990 levels, despite the company tripling
in size over the same period. The company has achieved these results by including
energy efficiency in all of its business decisions – using the latest construction
technology to improve the energy efficiency of its facilities, purchasing the
most fuel-efficient vehicles, using video conferencing instead of air travel
and taking a host of other actions. Husky expects to completely eliminate its
net CO2e emissions and become GHG neutral by 2010.
ACHIEVEMENTS
The three General Manufacturing Sector Task Forces, which each
meet three to four times a year, continue to make progress in meeting the commitments
outlined in their current action plan. The task forces are currently revising
the sectors action plan for the period 2003–2006. The task forces
have established and are maintaining ongoing collaborative efforts with manufacturing,
technology and energy organizations that are interested in furthering industrial
energy conservation and efficiency. Moreover, the growing regional task forces
in western and eastern Canada continue to extend CIPECs reach to manufacturers
nationwide. Across the country, the sector is encouraging the involvement of
other associations and firms and stimulating the reporting of energy efficiency
progress by the sectors Industrial Energy Innovators.
CHALLENGES
The General Manufacturing Sector Task Forces cover an extremely
broad range of industries that comprise companies of all sizes. This diversity
makes it a challenge to develop comprehensive, accurate, sector-wide energy
data.
Moreover, the implementation of energy efficiency programs is
an uphill battle for many sector companies. Where energy is a large component
of overall costs, many manufacturers, especially smaller ones, lack the knowledge
and financial resources to identify and act on energy-saving opportunities.
For companies that are less energy intensive, the relatively small role that
energy plays in overall costs makes it difficult to justify major capital expenditures.
For companies of all sizes, finding the staff and capital resources to dedicate
to energy projects is a significant impediment. Furthermore, as many companies
restructure to lower costs and reduce staffing, the competition for resources
has pushed energy efficiency improvement programs to the back burner.
These challenges are exacerbated by wide fluctuations in energy
prices, which make it difficult to build a classical business case for investments
in energy efficiency.
Lime
Profile Canadas merchant lime sector supplies essential raw materials for steel production, mining, pulp and paper manufacturing, water treatment, environmental management and other basic industries. Operating 15 facilities and employing more than 700 people, the sectors four companies and their affiliates had a combined lime-calcining capacity of approximately 3 million tonnes in 2001.
Performance Highlights
- In 2001, the lime sector had a combined lime-calcining annual capacity of approximately 3 million tonnes.
- The sector co-sponsored a customized energy workshop for Canadian lime producers in June 2002.
- Chemical Lime Company of Canada Inc. held a customized energy workshop in western Canada in January 2003.
- Graymont (QC) Inc. commissioned an energy-efficient short rotary kiln at its facility in Bedford, Quebec.
- While the sectors total energy consumption increased by 1491 TJ between 1990 and 2000, the sectors energy intensity index decreased by 13.5 percent.
- Companies representing nearly 99 percent of the lime-production capacity in Canadas merchant lime sector are now Industrial Energy Innovators.
ACTIONS
In June 2002, the Canadian Lime Institute, in conjunction with NRCans Office of Energy Efficiency, co-sponsored a customized energy workshop for Canadian lime producers. Carmeuse Lime (Beachville) Ltd. hosted the workshop at its facility in Ingersoll, Ontario. All but one member company of the Canadian Lime Institute was represented at the event, which drew 22 participants that ranged from energy managers, mechanics and operators to accounting personnel, senior executives, plant managers, superintendents and supervisors. Chemical Lime Company of Canada Inc. held a similar customized energy workshop in January 2003. The event, held at the Chemical Lime Companys plant in Langley, British Columbia, attracted 29 participants.
Individual lime manufacturers continue to make significant energy efficiency improvements. For example, Graymont (QC) Inc. commissioned an energy-efficient short rotary kiln at its facility in Bedford, Quebec. The kiln, which includes a process preheater, is rated at 550 tonnes of production per day.
ACHIEVEMENTS
Companies in the merchant lime sector represented by the Canadian Lime Institute continue to work actively to improve the energy efficiency of their operations. Within the sector, Industrial Energy Innovators account for close to 99 percent of Canadas lime-production capacity.
Accurate energy consumption and efficiency data for 2001 were not available
as of this writing. However, in 2000, it took 16 237 TJ of energy to produce
2351 kilotonnes of lime. This compares with 16 937 TJ and 2381 kilotonnes in
1999, and 14 746 TJ and 1848 kilotonnes in 1990. Energy consumption per tonne
of lime decreased from 7.11 GJ per tonne in 1999 to 6.91 GJ in 2000, a 3 percent
improvement. While total energy consumption increased by 1491 TJ between 1990
and 2000, the sectors energy intensity index decreased by 13.5 percent.
The sector is committed to continuing improvement in its energy intensity at
a target rate of 0.3 to 0.5 percent per year.
Only about 40 percent of the GHGs emitted by the lime sector relate to the
consumption of energy to prepare limestone for calcination and to convert it
into finished products. The remaining 60 percent emerges from the calcination
or decomposition of limestone. The sectors GHG emissions are offset
to some extent by the re-absorption of CO2 by lime during its life cycle. The National Lime Association estimates that more than 25 percent of the lime produced in Canada and the United States re-absorbs CO either in process or naturally.
CHALLENGES
In an industry that depends heavily on combustion fuels, rising
fuel prices make energy efficiency a top priority. Although ongoing refinements
continue to be made to existing calcining equipment, substantial capital investments
in new, more efficient kiln installations are needed to realize major gains.
Although these investments are important to the industrys competitiveness
and energy efficiency, a recent weakened demand for the industrys product
has increased the challenge facing lime producers to find the needed capital.
Producers are also challenged to balance energy efficiency with
quality. The production of lime occurs at high temperatures, using large quantities
of combustion fuel. Natural gas is the sectors principal fuel source,
with petroleum, coke and coal making up most of the balance. Fuel switching
and high-efficiency large-kiln technology may reduce energy requirements, but
they can also interfere with product quality, a significant concern for some
of the sectors largest customers.
Mining
Profile Canadas minerals and metals industry produces 60 different
mineral commodities. At the end of 2001, there were 71 metal mines and 26 non-ferrous
metal smelters and refineries (excluding aluminum) located across the country.
The mining and minerals processing industry directly employs 375 000 people
and contributed $35 billion to Canadas GDP in 2001 – 3.75 percent
of the national total. Canada is one of the worlds largest mineral exporters,
with 80 percent of its production – valued at $47.4 billion – destined
for foreign markets. This represents 13.8 percent of total domestic exports,
or $1 for every $8 earned in Canada through exporting. Despite an overall decline
in mineral prices in recent years, mineral and metal exports increased by 63
percent between 1993 and 2001.
Performance Highlights
- Canada is one of the worlds largest mineral exporters, with 80 percent of its production – valued at $47.4 billion – destined for foreign markets.
- In 2001, the Mining Association of Canada (MAC) received a VCR Inc. Association Leadership Award of Canadas Climate Change Voluntary Challenge and Registry Inc. (VCR Inc.) for its voluntary progress in reducing energy consumption and GHG emissions across Canadas mining and metals industry.
- MAC has completed energy benchmarking studies on underground bulk and open-pit mining operations.
- MACs Task Force on Energy hosted its second energy efficiency conference in November 2002.
- Falconbridge Limiteds Canadian divisions implemented energy conservation projects that reduced energy consumption by 13.8 GWh in 2001.
- Inco Limited implemented 88 projects under its Energy Breakthrough program, resulting in savings of 1331 TJ and emissions reductions of more than 61 kilotonnes of CO2e.
- MAC members have agreed to extend the sectors annual energy intensity reduction target of 1 percent to 2005.
ACTIONS
Through the Mining Association of Canada (MAC), members of the mining industry are firmly committed to improving energy efficiency and participating in a solution to climate change. As part of their commitment to GHG reduction, 16 of MACs 26 members (62 percent of total membership), representing most of energy consumption in the metal mining sector, are participating in Canadas Climate Change Voluntary Challenge and Registry Inc. (VCR Inc.). MAC continues to encourage member and non-member companies to report progress annually. In 2001, MAC achieved VCR Inc.s Gold Level Champion reporting status and was awarded VCR Inc.s Association Leadership Award for voluntary progress for its success in helping to reduce energy consumption and GHG emissions across Canadas mining and metals industry.
To encourage greater member participation, MAC voluntarily reports the GHG emissions of its members in its annual Environmental Progress Report. In 2001, the second year of this report, nine member companies provided data for public reporting on their energy consumption and on their direct and indirect GHG emissions.
To help companies develop and implement effective energy efficiency programs across the Canadian mining industry, MACs Task Force on Energy hosted its second annual Energy Efficiency Conference in Calgary, Alberta, in November 2002. The session, which was designed for managers involved in energy efficiency, production, financial analysis, environmental issues and long-term cost-efficiency planning, included a workshop that helped attendees identify business opportunities available through improved energy efficiency.
To measure and compare energy performance within the industry, MAC, with the assistance of NRCans Office of Energy Efficiency, has performed energy benchmarking studies on underground bulk and open-pit mining operations. A third benchmarking study that will focus on non-ferrous smelting and refining is being planned. These studies have provided valuable information for measuring an organizations energy performance and have helped identify where improvements and better practices can be adopted.
Within the industry, individual companies are seizing opportunities to improve
energy efficiency. For example, at its smelter in Sudbury, Ontario, Falconbridge
Limited is installing furnace-peak, paste-heater and automation controls. At
its Sudbury mine, the company is turning down its principal mine ventilation
system and reducing shaft air temperatures. At its Raglan operation, in northern
Quebec, Falconbridge is rationalizing remote generators and concentrator compressed-air
systems and is optimizing underground heating. At its Kidd Creek facilities
in Timmins, Ontario, the company is introducing process improvements to reduce
natural gas use and is making improvements to its zinc plant cell-house and
to its systems for compressed air, mine ventilation and electrical metering.
In 2001, Falconbridges Canadian divisions implemented energy conservation
projects that reduced energy consumption by 13.8 GWh. By maintaining its focus
on energy efficiency, the companys Canadian divisions have improved their
energy intensity by 9.31 percent and reduced their carbon intensity by 6.36
percent since 1990. Inco Limiteds Energy Breakthrough (EB) program has
become the focal point of the companys energy efficiency and climate change
mitigation efforts. During the programs first full year of operation in
2001, Inco expanded it to include additional operations, including the companys
copper and nickel refineries. Over 12 months, Inco implemented 88 EB projects,
resulting in audited energy savings of 1331 TJ and emissions reductions of more
than 61 kilotonnes of CO e. In Incos Ontario operations alone, EB projects
produced energy savings of $13.5 million, well above the companys $12
million target. Incos EB program is supported by the companys PowerPlay
awareness campaign that links individual action, energy efficiency and climate
change mitigation. PowerPlay encourages employees to identify energy-saving
projects that can be integrated into the EB tracking system. During the programs
pilot phase, employees offered 650 suggestions. The top 60 projects were implemented,
resulting in annual energy savings of just under $10 million.
ACHIEVEMENTS
In 2001, total energy used in metal mining was 77 012 TJ compared
with 79 054 TJ in 2000. Over the period 1990–2001, energy consumption in
metal mining decreased by 24 percent, while energy intensity, or energy consumed
per unit of metal concentrate, improved by 3 percent. For the period 1990–2000,
metal mining decreased its total GHG emissions by 19.2 percent and improved
overall GHG intensity by 18.5 percent.
MAC member companies have agreed that the target of 1 percent
annual reduction in energy consumption per unit of output, originally intended
to run from 1995 to 2000, will be extended to 2005.
CHALLENGES
MAC believes that when considering the mining industrys
role in meeting Canadas Kyoto commitments, it is vital that the Government
of Canada develop an implementation plan that fully respects the trade and competitiveness
implications of ratification for all Canadians. What is needed is a clear-eyed
assessment of Canadas ability to meet the Kyoto target and the consequences
of doing so. As has been the case in the past, MAC will fully support the development
of this implementation plan, but the process must not halt immediate action
in limiting the GHG emissions that contribute to climate change. MAC members
want to be part of the solution and accept that prudent precautionary measures
are necessary for a healthy environment and a healthy economy.
MAC supports the development of balanced climate change policies
that achieve the following:
- efficiently improve environment quality and deliver sustainable and predictable environmental, social and economic policies over the long term
- encourage and support early action by industry to reduce GHG emissions
- build on voluntary measures by industry
- maximize flexibility to minimize costs
- examine emissions embodied in trade
- encourage investment in better energy-efficient processes and the cost-effective replacement of capital stock
- recognize and encourage the growth of domestic industry
- support a productive and competitive economy
- maximize investment certainty for business
Energy costs for Canadas mining sector represent a significant
component of the total cost of operations, and mining companies have made energy
efficiency a top priority. Companies have employed new technology and results-based
energy audits to boost energy efficiency, reduce emissions and improve competitiveness.
Although the limits of technology and the net cost of further reducing GHG emissions
are significant barriers, many financially attractive opportunities still exist
for improving energy efficiency and reducing costs.
Oil Sands
Profile Canadas oil sands sector includes two plants in northern Alberta and one heavy oil upgrader in Saskatchewan. Together, these facilities produce more than 400 000 barrels of crude oil per day for markets in Canada and the United States. The sector is a major employer and a significant contributor to Canadas GDP.
Performance Highlights
- The oil sands sector is committed to ongoing improvements in energy efficiency
through a combination of operational excellence and technological innovation.
- Initiatives launched by Suncor Energy Inc.s oil sands operations have
reduced its GHG emissions in 2001 by 2 million tonnes of CO2e compared
with 1990.
- Syncrude Canada Ltd. continues to pursue Syncrude 21, its 11-year
strategic capital investment program begun in 1997.
- The Athabasca Oil Sands Project is committed to reducing its GHG emissions
by 50 percent by 2010.
- Using a life-cycle value assessment process, Petro-Canada was able to reduce
projected GHG emissions from its new MacKay River oil sands project by approximately
15 percent.
- In 2001, energy consumed per unit of production was 8.68 GJ/m3,
a total improvement of 20 percent since 1990.
ACTIONS
Ongoing technological innovation and a commitment to operational excellence continue to help the oil sands sector make substantial improvements in energy efficiency. Plants are improving the reliability of their operations and introducing programs to recover waste heat and boost yields through more efficient processing. Other gains are coming from the introduction of new technologies in the mining and extraction stages.
In 2001, Suncor Energy Inc. – Oil Sands began construction of the Firebag
Oil Sands Project north of Fort McMurray, Alberta. Firebag is designed to use
steam-assisted gravity-drainage (SAGD) technology to reach deep bitumen deposits
with less impact to the air, water and land than traditional mining methods.
Suncor has improved its extraction process by implementing a new steam turbine
generator that uses waste heat from the oil sands upgrader in the extraction
process while generating electrical power. In addition, TransAlta Energy Corporation
began operating a new cogeneration facility on the Suncor plant site in the
summer of 2001. Initiatives launched by the companys oil sands operations
have reduced its 2001 GHG emissions by 2 million tonnes of CO2e
compared with 1990. Suncor estimates that planned internal operating initiatives,
including new technologies, new products, energy efficiency projects and energy
chargebacks, should lower its GHG emissions by more than 6 million tonnes
of CO2e by 2005.
Syncrude Canada Ltd. continues to pursue Syncrude 21, its 11-year
strategic capital investment program begun in 1997. The four-stage project is
upgrading oil sands operations and improving energy efficiency. Syncrude 21
and predecessor activities have had a significant impact on the companys
energy efficiency and, subsequently, on GHG emissions. Although the company
plans to increase annual crude production by 95 million barrels between 1988
and 2012, Syncrude has targeted a one-third total improvement in energy use
and emissions per barrel over that period. This CO2 represents a
25 percent reduction compared with 1990. The company will achieve these improvements
by shifting to less energy intensive mining and extraction methods, upgrading
its technology and implementing process improvements.
The Athabasca Oil Sands Project (AOSP) met its commitment in March 2001 to estimate GHG emissions resulting from the construction phase of the project. A full report on these emissions is scheduled for completion in early 2003. As an offset to its GHG emissions, the AOSP joint-venture partners engaged the Tree Canada Foundation to plant 160 000 trees. The project is committed to a best-practices approach to environmental management, and AOSP is committed to reducing its GHG emissions by 50 percent by 2010 through a combination of energy efficiency measures, purchased and partner-generated offsets and clean development mechanism projects in conjunction with international partners.
Petro-Canada began construction of an in-situ oil sands development
at MacKay River, near Fort McMurray, Alberta, in late 2000. Before launching
the oil sands venture, Petro-Canada instituted a life-cycle value assessment
analysis process. Using this process, Petro-Canada was able to incorporate improvements
in its design process that reduced projected GHG emissions by approximately
15 percent. The project will use SAGD technology to produce 30 000 barrels of
oil per day. This technology will enable Petro-Canada to produce from previously
inaccessible resources and do so with significantly less surface impact than
traditional oil sands mining. To minimize GHG emissions at the site, the project
will use a cogeneration power plant to produce steam and electricity for its
operations and provide surplus electricity to the power grid. The cogeneration
project will reduce GHG emissions from the oil sands plant by 50 percent.
ACHIEVEMENTS
In 2001, the oil sands sector continued to make steady progress
toward energy efficiency. Energy consumed per unit of production rose slightly
to 8.68 GJ/m3, compared with 8.55 GJ/m3 in 2000. Although
total annual production rose 95 percent since 1990, energy use rose only 56
percent. In 2001, the sectors energy consumption totalled 202 455 TJ,
and its energy intensity has improved a total of 20 percent since 1990. This
compares favourably with the sectors target of a 1 percent minimum average
improvement in energy efficiency per unit of production per year.
CHALLENGES
The oil sands industrys challenges continue to be both
technological and financial. To further improve energy efficiency, sector companies
must continue to combine investment in innovative technologies with operational
excellence. They must continue to develop and implement better, less energy
intensive extraction methods and modify material-handling systems to efficiently
accommodate ever-increasing production. Due to the massive scale required for
oil sands production, these activities tax the industrys financial capabilities
and human resources. The long lead times and substantial investments required
to introduce enhancements continue to force difficult choices on the industry
and limit the sectors progress toward greater energy efficiency.
Petroleum Products
Profile Canadas petroleum products sector markets gasoline, diesel,
heating oil, jet fuels, lubricating oil, grease, food-grade white oils,
asphalts and aromatic hydrocarbons through a network of more than 15 000 wholesale
and retail outlets nationwide. Operating 21 oil
refineries across the country, the industry provides direct employment for 100
000 Canadians and generates an estimated 100 000
indirect jobs.
Performance Highlights
- The industry operates 21 oil refineries across the country and provides 200 000 direct and indirect jobs.
- The Canadian Petroleum Products Institute and NRCans Office of Energy Efficiency initiated a successful anti-idling pilot project in Mississauga, Ontario.
- Imperial Oil Limited plans to install a $120 million, 90-megawatt natural-gas-fired cogeneration facility at its refinery in Sarnia, Ontario.
- In 2001, Petro-Canada refineries cut more than 36.6 kilotonnes from their annual GHG emissions and saved more than 667 000 GJ of energy.
- Suncor Energy Inc. reduced its marketing and refining GHG emissions in 2001 by 6.3 percent compared with 2000.
- Shell Canada Products Limited improved its energy efficiency by more than 2 percent in 2001.
- In 2001, the sectors energy intensity index stood at 94.2 – 16.6 percent better than in 1990.
ACTIONS
A pilot project jointly initiated and funded by the Canadian Petroleum Products Institute (CPPI) and NRCans Office of Energy Efficiency helped to raise public awareness of how small, day-to-day choices can have a significant environmental impact. An anti-idling campaign, conducted in fall 2001 in Mississauga, Ontario, involved more than 50 service stations from five gasoline retail chains. Designed to encourage motorists to reduce unnecessary vehicle idling, the highly successful pilot generated a wealth of data to help shape similar programs in the future.
Individually, Canadian refiners continue to invest in capital projects and make improvements to their operations to reduce the refining sectors energy intensity index by 1 percent per year through to 2005. For example, Imperial Oil Limited plans to install a $120 million, 90-megawatt natural-gas-fired cogeneration facility at its refinery in Sarnia, Ontario, that will produce about 75 percent of the sites electricity requirements. Although this will slightly add to the companys total emissions, it will offset the use of power from more carbon-intensive sources and reduce overall GHG emissions by as much as 500 kilotonnes per year. Imperial Oil reports that GHG emissions from its downstream operations were 2.7 percent lower in 2001 than in the previous year because of a lower carbon fuel mix, less flaring and slightly lower production.
In 2001, process improvements at its refineries in Montréal, Quebec, and Mississauga, Ontario, enabled Petro-Canada to cut more than 36.6 kilotonnes from its annual GHG emissions and save more than 667 000 GJ of energy. Projects planned for and underway at its four refineries will produce additional reductions of 2.5 million GJ of energy and 130.7 kilotonnes of GHG emissions by 2005. Since 1990, Petro-Canadas company-wide actions have reduced annual GHG emissions by more than 1.2 million tonnes.
The comprehensive Energy Management System at Suncor Energy Inc. is contributing to energy efficiency and reduced GHG emissions. The company has installed a box cooler control at its refinery in Sarnia to reduce steam consumption. Work is now complete on minimizing inefficient operating conditions by increasing the response rate to process variables from 14 times per week to every two hours. The overall energy improvement from 1990 to 2001 has averaged 0.6 percent per year, as measured by the energy formula from the Solomon Energy Intensity Index. Overall, Suncors 2001 marketing and refining GHG emissions were 6.3 percent below 2000 levels. The company will purchase steam and electricity from the Sarnia Regional Cogeneration Plant, thereby reducing emissions by an annual 174.6 kilotonnes of CO e.
Following a trend established in the early 1990s, Shell Canada
Products Limited improved its energy efficiency by more than 2 percent in 2001.
At its refinery in Scotford, Alberta, Shell is considering projects that will
reduce net GHG emissions by 135 kilotonnes, with a further 165-kilotonne reduction
possible by purchasing cogenerated power. At its refineries in Sarnia and Montréal,
the company is investing $150 million to install gasoline hydrotreaters, which
will reduce sulphur levels in gasoline to meet upcoming Government of Canada
standards of 30 parts per million. Modifications to the hydrotreater design
will enable Shell to reduce anticipated fuel consumption and reduce GHG emissions
from the new equipment by 20 percent. Shells planned energy improvement
capital investments, totalling $50 million between 2001 and 2005, are expected
to reduce GHG emissions by 300 kilotonnes.
ACHIEVEMENTS
Since the 1990 base year, the sectors total energy consumption
has increased slightly by 0.5 percent to 267 638 TJ; production over the same
period increased by 14 percent. In 2001, the sectors energy intensity
index stood at 94.2, basically the same as in 2000 and 16.6 percent better than
in 1990. The sector utilizes the Solomon Energy Intensity Index because it is
an international standard that dates back to 1990, is well documented and has
been the basis for CPPI member commitments.
In 2001, production of petroleum products increased by 2.7 percent
while energy consumption increased by 0.5 percent, or 1459 TJ, compared with
2000.
CHALLENGES
The sector will be challenged in the next several years to continue
to reduce energy consumption. Meeting lower sulphur-content standards for gasoline
and diesel fuel will require the industry to invest an estimated $1.8 billion
in capital improvements. These improvements in fuel quality, combined with new
engine systems in vehicles, will lead to an estimated 90 percent reduction in
tailpipe emissions of key smog-forming gases (NOx, SOx
and volatile organic compounds).
Paradoxically, the production of low-sulphur fuel will require
methods and processes that are more energy intensive, thereby making it more
difficult and expensive for refineries to reduce their own CO2 emissions.
Although the industry has made sizable capital investments and
re-engineered its practices to reduce energy intensity, continued development
of innovative energy efficiency projects will be needed in order for the industry
to maintain its continuous improvement trend.
Pulp and Paper
Profile Pulp and paper, a key component of the forest products industry,
is a major contributor to Canadas economy. Besides market
pulp, the sector includes the newsprint, specialty papers, paperboard, building
board and other paper sub-sectors.
Performance Highlights
- Canadas pulp and paper facilities have reduced their GHG emissions
by 26 percent since 1990 through energy improvements, fuel switching and energy
conservation projects, even though production increased by 21 percent.
- Fifty-seven percent of the pulp and paper industrys energy needs now
come from renewable biomass energy.
- Tembec Paper Group – Pine Falls Operations has completed a number of
GHG-reduction initiatives at its newsprint mill in Manitoba.
- Stora Enso North Americas Port Hawkesbury Mill expects to record a
37.2 percent reduction in total direct fossil-fuel-source GHG emissions by
2005.
- Alberta-Pacific Forest Industries Inc.s direct and indirect GHG emissions
in 2001 were 50 percent below 1994 benchmark levels.
- Energy-reduction and fossil-fuel-substitution activities at Domtar Inc.
have led to substantial gains in energy efficiency.
ACTIONS
Pulp and paper companies continue to improve energy intensity and implement programs to reduce the use of fossil fuels. For example, Tembec Paper Group – Pine Falls Operations has completed a number of initiatives to reduce GHG emissions at its Manitoba newsprint mill complex. Since 1998, the company has used solids (sludge) from its wastewater treatment system as biomass fuel for its boilers, thereby reducing its reliance on coal. In March 2001, the company commissioned a new, $124 million thermo-mechanical pulp mill that incorporates a sophisticated heat recovery unit. Excess heat generated by the new mill is harnessed to produce steam, enabling Tembec to further reduce its coal consumption. As a result of these and other actions, the companys GHG emissions for fiscal year 2001 were 17 percent below 1990 levels. Tembec is now working toward launching a proposed joint venture sawmill in partnership with 11 First Nations community businesses to provide additional biomass fuel (bark) as part of its coal-replacement efforts at its newsprint mill.
Stora Enso North America – Port Hawkesbury Mill of Nova Scotia expects to see a 37.2 percent reduction in its total direct fossil-fuel-source GHG emissions and a 63.4 percent reduction in specific emissions per tonne of production over 1990 levels by 2005. These improvements will come from displacing heavy oil with natural gas and from energy-saving projects. Gas was first delivered to the mill in July 2001 and is being used to replace heavy oil as boiler fuel. The mills specific emissions for 2001 were 23.5 percent below 1990 levels and were running 52.0 percent below 1990 levels in the first 10 months of 2002.
Alberta-Pacific Forest Industries Inc. (Al-Pac) of Boyle, Alberta, is Canadas newest and North Americas largest single-line kraft pulp mill. The mill was designed to be almost self-sufficient in terms of energy through its use of wood-waste and black-liquor energy sources to produce process steam and electricity. Today the mill generates 84 percent of its own energy requirements. Al-Pacs direct and indirect
GHG emissions in 2001 amounted to 0.23 tonne of CO2e per air-dried
tonne of pulp production, a decrease of 50 percent since 1994, the mills
first year of production. Al-Pacs absolute mill GHG emissions have dropped
from 215 343 tonnes of in 1994 to CO2e 137 593 tonnes
in 2001, a decrease of 36.1 percent despite increased pulp production. The sale
of Al-Pac–generated surplus power to the Alberta Interconnected Electric
System and a company-created forest sequestration sink should position Al-Pac
as a net carbon sink rather than a net emitter. The companys surplus power
sales will offset GHG emissions by 25 766 tonnes of CO2e per
year in the Alberta power grid, and the forest sequestration project will
make Al--Pac a net carbon sink of 561 029 tonnes of CO2e per
year by 2024.
Energy-reduction and fossil-fuel-substitution activities at Domtar Inc. have led to substantial gains in energy efficiency. In 2000, although production at Domtars pulp and paper operations increased by 32.4 percent compared with 1990, total GHG emissions from fossil fuels per tonne of product decreased by 23.4 percent. The company expects to further reduce GHG emissions by promoting continuous improvement activities, installing equipment that is more energy efficient, maximizing the use of resources such as waste, improving efficiency and increasing the use of biomass fuels.
The industry has also taken action on energy efficiency through
its associations and institutes. For example, the Forest Engineering Research
Institute of Canada (FERIC), in collaboration with NRCans Office of Energy
Efficiency, launched its SmartDriver program for forestry trucks in 2001. The
program provides advice on safe, fuel-efficient driving techniques and guidance
on selecting vehicle components to reduce fuel consumption. FERICs star
trucks initiative, developed in partnership with Tembec Inc., made further
advances in 2001 by providing an increased payload capacity and reduced idling
time. These activities enable fleets to reduce hauling costs and GHG emissions
by more than 10 percent.
ACHIEVEMENTS
Over the past decade, the pulp and paper industry has made steady
progress toward improving its energy efficiency. For the period 1990–2001,
the pulp and paper industry improved its energy consumption per tonne of output
by 11.4 percent. The sector decreased its total energy consumption per tonne
of pulp and paper from 29.5 GJ in 1990 to 26.1 GJ in 2001. Over the same period,
the consumption of fossil fuel and electricity (excluding biomass) decreased
from 14.7 GJ per tonne to 11.2 GJ per tonne.
The industrys ongoing focus on biomass energy sources has
enabled pulp and paper companies to reduce their use of less environmentally
friendly fossil-fuel sources, despite growing production. Fifty-seven percent
of the industrys energy needs are now met by turning wastes into renewable
fuels. Over the same period, the industrys use of heavy fuel oil has been
reduced by 33.2 percent. Thanks to this trend, it took 11.4 percent less energy
to produce a tonne of pulp and paper in 2001 than it did in 1990. Expressed
in terms of GHG emissions, the sector emitted 38 percent fewer GHGs to produce
a tonne of pulp and paper in 2001 than it did in 1990.
CHALLENGES
The rapid climb of fossil-fuel prices is providing significant
impetus to pulp and paper companies to improve their fuel efficiency and use
more biomass fuel sources. The switch to biomass will help the sector achieve
additional reductions in energy intensity. At the same time, international disputes,
production curtailments and other factors have resulted in a reduction in total
biomass availability. Although this decline exists in most areas of Canada,
there is still a significant amount produced annually and that is available
for energy use.
Rubber
Profile The rubber products sector comprises establishments that are
engaged in manufacturing tires and tubes, automotive parts, rubber hoses and
belting, mechanical rubber goods and a wide variety of other products such as
rubber and plastic weatherstripping, pressure-sensitive tape, rubber gloves,
rubber mats, rubber household products and tire-retreading materials. To meet
demand for its products, the rubber products industry employs just over 26 000
people in some 240 facilities nationwide, providing a total payroll of more
than $700 million annually.
Performance Highlights
- The Rubber Association of Canada (RAC) sponsored an energy efficiency workshop customized for the rubber industry on November 20, 2002.
- The tire industry is continuing its efforts to promote the use of energy-saving wide-base tires within the trucking industry.
- The RAC has signed an agreement with NRCan to further develop its education campaign on tires, Be Tire Smart – Play Your Part.
- Goodyear Canada Inc. is using SOLARWALL® technology at its plant in Napanee, Ontario.
- NRI Industries Inc. has completed the installation of a second continuous curing press at its plant in Toronto, Ontario.
ACTIONS
The rubber industry continues to take the initiative in improving its energy efficiency. For example, on November 20, 2002, the Rubber Association of Canada (RAC) sponsored an energy efficiency workshop that was customized for the rubber industry and conducted in partnership with NRCans Office of Energy Efficiency. The workshop looked at how energy is used and lost in rubber products facilities and how to incorporate energy savings within management objectives. The workshop was well received and has created a demand for follow-up workshops among sector companies.
The tire industry is continuing its efforts to promote the use of energy-saving wide-base tires within the trucking industry. With wide-base tires, fewer tires are needed, thereby reducing energy-wasting sidewall friction and improving fuel economy by approximately 5 percent. This provides economic benefits to trucking fleets as well as relief for the environment.
The RAC has signed an agreement with NRCan to further develop its education campaign on tires, Be Tire Smart – Play Your Part. The first phase of the expanded program includes gathering information through a national survey of tire inflation. The survey will obtain information on 1800 motorists in six locations across Canada to determine their current knowledge, attitudes and practices regarding their vehicle tire maintenance. In addition, technical data such as vehicle identification number, tire size, tire pressure and tread depth will be collected for each vehicle.
Individual RAC member firms have also taken action to improve energy efficiency. For example, Goodyear Canada Inc. is using SOLARWALL® technology to advance ISO 14000 continuous improvement objectives at its facility in Napanee, Ontario. Completed in late 2002, the $76,500 project is expected to result in annual natural gas savings of more than 600 GJ, with an associated GHG reduction of more than 30 tonnes per year. The system saves additional energy by recapturing heat lost through the buildings walls and by reducing air stratification and exhaust heat loss. Goodyear expects that the installation will reduce natural gas costs to heat the area it supplies by about 80 percent.
NRI Industries Inc. of Toronto, Ontario, has taken numerous steps to improve energy efficiency. The company uses motion sensors in each office to turn off lights when the space is not in use, uses high-efficiency equipment such as steam boilers and motors, and has installed improved building and machinery insulation. Recently installed high-efficiency boilers are expected to reduce natural gas use at the companys plant in Mississauga, Ontario, by 43.4 percent and at its Toronto plant by 27.2 percent. NRI has completed the installation of a second continuous curing press at the Toronto plant and is converting several inefficient batch operations to more efficient continuous processes. The company is also capturing heat from its boilers for use as building heat.
ACHIEVEMENTS
Based on sample data collected by the RAC for 2001, total production
of the rubber products sector was 1 111 950 tonnes, with a value of approximately
$6.76 billion, up from 531 961 tonnes and $3.31 billion in 1990. Most of the
Canadian industrys total shipments were exports, with more than 95 percent
of these going to the United States. In absolute terms, energy consumption for
the rubber products industry increased between 1990 and 2000, rising from 9115
TJ in 1990 to 12 309 TJ in 2001. However, the sectors gross output increased
at a higher rate, leading to a significant decline in energy intensity over
the same period.
CHALLENGES
The rubber industry faces a number of issues that affect the
sectors efforts to improve energy efficiency, among them the Kyoto Protocol,
rising energy costs and increasing foreign competition. Canadas signing
of the Kyoto Protocol has created a great deal of uncertainty for rubber manufacturers.
There is no specific policy program yet identified, and the industry has deep
concerns that unless there is significant industry consultation in its creation,
upcoming policies may be unworkable. In addition, rising energy prices, accelerated
by international uncertainties, are putting serious pressures on manufacturers.
Although higher prices provide a strong incentive to invest in energy efficiency
in the longer term, weak international markets and intensifying foreign competition
will make it difficult to find the capital to make these investments.
Domestic rubber manufacturers are concerned about the rising
influx of low-cost offshore product from emerging industrial countries such
as China. An industry trade journal recently reported that the U.S. Department
of Transportation received requests for paperwork to import tires from dozens
of Chinese tire plants alone. Canadian manufacturers will be forced to compete
with imports from these low-labour-cost producers and may find it impossible
to allocate additional resources to energy efficiency.
Steel
Profile Canadas steel sector is one of the countrys largest
industries, generating annual sales of more than $11 billion, including more
than $3 billion in exports. The companies that make up the steel sector supply
flat-rolled (sheet and plate), long (re-bar and structural steel) and specialty
and alloy (stainless and tool steels) products for major markets in the automotive,
appliance, oil and gas, machinery, construction and packaging industries. The
Canadian steel sector comprises 16 plants that directly employ 34 500 workers
in five provinces.
Performance Highlights
- Algoma Steel Inc. reduced its GHG emissions by 7.9 percent through adjustments to its fuel mix and improved facility efficiency.
- Recent energy-saving measures taken by Gerdau AmeriSteel Corporations facility in Cambridge, Ontario, are saving the company more than 1.2 million kWh of electricity annually, or $55,000 per year.
- Ongoing energy efficiency efforts at Dofasco Inc. have improved its energy consumption by 17.6 percent since 1990.
- Stelco Inc. companies have achieved an aggregate 20 percent reduction in specific energy consumption and CO2 intensity.
- The steel sectors energy intensity performance improved significantly, from 17.29 GJ per tonne in 2000 to 15.81 in 2001.
ACTIONS
Canadian steelmakers continued to invest in programs that improve energy efficiency as part of efforts to upgrade productivity and quality while reducing costs.
Algoma Steel Inc. completed a project for one of its plate heat treat furnaces
at its mill in Sault Ste. Marie, Ontario, that reduced natural gas consumption
by 0.8 million BTU per tonne of steel processed. The project lowered costs and
improved product quality while reducing emissions by nearly 20 000 tonnes of
per year. Algoma is CO2 implementing a networked energy (power) monitoring
system to track the companys entire power consumption grid and to help
plan future power reductions. From 2000 to 2001, Algoma reduced its GHG emissions
by 7.9 percent through adjustments to its fuel mix and improved facility efficiency.
Gerdau AmeriSteel Corporations facility in Cambridge, Ontario, established energy conservation teams at its melt shop and rolling mill to identify and implement energy-reduction measures. Recent energy initiatives include installing a timer to automatically shut down the bag house during off-use periods, adjusting the fume exhaust system of the ladle baking station to limit operation to periods when it is required, and automatically shutting down pumps when the mill is down. These measures are saving the company more than 1.2 million kWh of electricity annually, or $55,000 per year.
Dofasco Inc. undertook a pilot audit of energy and utilities savings at its Tin Products Business Unit. A cross-function team at the companys facilities in Hamilton, Ontario, identified energy and utilities savings opportunities of about 10 percent per year. The pilot audit will be extended to two other business units in 2002. The companys Steelmaking Business Unit improved its ladle metallurgy control, power profile and burner tuning on the electric arc furnace vessel, leading to energy savings of 33 500 GJ per year. The Utilities Business Unit reduced pilot fuel consumption in its boilers, freeing up fuel to displace purchased fuel used elsewhere in the plant. Combined activities in 2001 resulted in a 0.32 percent improvement in the total plant energy rate and produced annualized energy savings of 204 000 GJ. Dofascos specific energy consumption has improved 17.6 percent from 1990 to 2001.
Throughout 2001, the Stelco Inc. group of companies, comprising two divisions
and seven wholly owned subsidiaries, achieved an aggregate 20 percent improvement
in specific energy consumption (GJ per tonne shipped) and CO2 intensity
(tonne of CO2 produced per tonne of product shipped) compared with
the 1990 base year. Annual CO2 emissions from direct and indirect
sources totalled 7.3 million tonnes – a reduction of 12 percent, or 1 million
tonnes, from the 1990 base year.
- Stelco subsidiary Lake Erie Steel Company, in Nanticoke, Ontario, upgraded
controls and installed high-performance discharge doors on its two original
furnaces, thereby reducing heat loss and energy requirements for its hot strip
mill reheating furnaces. The company also converted the primary cooler pump
in its coke ovens from electric to steam drive, using steam produced with
blast furnace gas to reduce electric power consumption. Lake Erie Steel has
improved its overall energy efficiency by 32 percent relative to the 1990
base year.
- At AltaSteel Ltd., a Stelco division, in Edmonton, Alberta, a computerized
preventive maintenance program continues to improve energy efficiency by minimizing
operating delays. The company replaced an electro-mechanical tilting system
for its melting furnace with a hydraulic system, thereby enhancing product
process control and improving quality and yield.
- Stelco Inc.s Hilton Works in Hamilton, Ontario, continued to make
energy efficiency improvements in 2001, despite market-driven production cutbacks
and the idling of one of its two blast furnaces. Hilton lowered specific energy
consumption by almost 1 percent relative to its 1989 base year, reducing annual
CO2 emissions by more than 33 000 tonnes. These gains
were the result of actions such as re-evaluating heating requirements at its
hot strip mill to reduce steam use, coke-oven battery optimization, furnace
stockline control and tuyère improvements to reduce furnace fuel rates,
and air-fuel ratio improvements in its rod mill reheat furnace.
- Stelco McMaster Ltée improved the bar mill reheat furnace at its
facility in Contrecoeur, Quebec, reducing specific energy consumption by 4.1
percent between 1999 and 2002. Improvements to the eccentric bottom tapping
furnace oxy-burners and ladle preheating reduced natural gas consumption by
26 percent. A new, 16-stand in-line bar mill enabled the company to save 11.6
percent in electrical energy per tonne of steel produced. In 2001, specific
energy consumption at Stelco McMaster improved 10 percent over its 1989 base
year.
ACHIEVEMENTS
The Canadian steel industry produced 16.7 million tonnes of steel
and shipped 15.7 million tonnes in 2001. The sectors energy intensity
performance improved significantly, from 17.29 GJ per tonne in 2000 to 15.81
in 2001. Since 1990, the sector has improved its aggregated energy performance
by more than 25 percent. This represents an average annual improvement of 2.27
percent, surpassing the industrys commitment to an average improvement
of 1 percent per year for the period.
CHALLENGES
Through voluntary efforts, the steel sector has reduced GHGs
to well below the Kyoto Protocol target, but because the Government of Canada
does not provide credit for early action, the industry faces higher costs. In
addition, imports of low-priced steel continue to be a major threat to the profitability
and stability of the Canadian steel sector. For Canadian steelmakers to be competitive,
government must put in place effective measures to counter unfairly traded imports,
address global steel over-capacity, and deal with trade-distorting practices
by foreign governments.
Canadas tax system remains uncompetitive with the United
States, our major trading partner. Moreover, research into the development of
new energy efficiency technologies by Canadian steel producers, when conducted
outside of Canada or through international collaboration and partnerships, does
not fully benefit from the Government of Canadas Scientific Research and
Experimental Development Program. Such international efforts are common in industries
that are as capital intensive and internationally based as the steel industry.
Textiles
Profile Canadas textile industry produces the fibres, yarns,
fabrics and textile articles purchased by users and customers as diverse as
automotive manufacturing, clothing, construction, environmental protection,
road building and retail. The industry exports just under half of its production.
Performance Highlights
- In 2001, the industrys GDP output was 6 percent lower than in 1995, while its energy consumption decreased by 38 percent.
- Agmont Inc. is studying opportunities to reduce its use of natural gas by installing a solar water heating system.
- Lincoln Fabrics Ltd. conducted an energy audit to identify energy efficiency opportunities.
- Beaulieu Canada Company introduced a program to systematically gather and analyse energy data at its plants.
- Doubletex Inc. instituted a number of energy efficiency projects throughout its operations.
- DuPont Canada Inc.s performance contracting program is helping to make significant reductions in the companys energy consumption.
ACTIONS
Throughout the textiles sector, companies are benefiting from more efficient uses of energy. J.L. de Ball Canada Inc. of Granby, Quebec, has introduced programs to recover and re-use heat from washing machine water, improve tenter frame energy performance by installing new controls to modulate exhaust fans and temperature, and conduct energy surveys at all locations in its plant to identify energy conservation opportunities.
Consoltex Inc., with headquarters in Saint-Laurent, Quebec, and four manufacturing plants in Quebec and Ontario, remains committed to active efforts to improve energy efficiency. The company is carrying on with its steam trap improvement program, refitting its lighting systems with metal halide fixtures and pursuing opportunities to recycle process water. Consoltex is making strong progress toward a targeted 10 percent reduction in energy use per unit of production through to 2005.
Agmont Inc. of Montréal, Quebec, is conducting lighting retrofit and employee energy awareness programs and is studying opportunities to reduce its use of natural gas by installing a solar water heating system.
Lincoln Fabrics Ltd. of St. Catharines, Ontario, conducted an energy audit to identify energy efficiency opportunities. The company also upgraded its looms and implemented a program to detect and repair air leaks in order to improve the performance of its compressed-air system.
Beaulieu Canada Company of Acton Vale, Quebec, introduced a program to systematically gather and analyse energy data at its plants in Ontario and Quebec. The company is also planning to conduct energy audits.
Doubletex Inc., with plants in Montréal, Quebec, and Toronto, Ontario, installed a water-effluent heat recovery system, improved piping insulation, introduced a heat recovery program for its washing lines and launched an upgraded steam trap maintenance program. Doubletex is also studying opportunities to reduce energy consumption by using solar water heating.
DuPont Canada Inc. continues to implement its performance contracting program. The companys facility in Maitland, Ontario, started the companys first project under this program in October 2001. The project is now saving about 45 000 pounds per hour of steam, or more than 10 percent of the total steam used at the site. Three other projects, worth a total of more than $8 million, are under construction at the companys plant in Kingston, Ontario.
Through NRCans Office of Energy Efficiency, the Canadian Textiles Institute and CIPEC have jointly agreed to conduct a benchmarking study in the wet-processing segment of the textile industry. Wet processing is one of the industrys more energy intensive activities, and most companies employ similar technology. Moreover, advances driven by energy efficiency might also help to address textile mill effluent environmental issues.
The Textiles Sector Energy Task Force sponsored a Spot the Energy Savings Opportunities workshop that was customized for textiles companies and held in Montréal in spring 2002. The event was attended and enthusiastically received by nine companies and by representatives of the Indian Industrial Programme for Energy Conservation, who were on a study tour of CIPEC.
ACHIEVEMENTS
Based on NAICS* data for Groups 313 and 314, the textile industry
improved its energy intensity by 34 percent between 1995 and 2001. The sectors
actual energy use dropped by 38 percent during the same period, with a slight
decrease in the industrys GDP. Although these numbers are encouraging,
they appear to be overly optimistic based on the knowledge and experience of
the sector. More work will be required in the coming year to better understand
these aggregated and extrapolated data.
The Textiles Sector Energy Task Force remains committed to an
energy intensity reduction target of 1 percent per year for the period 2000–2010.
To meet this goal, the textile industry will build on its significant success
in improving energy efficiency since 1995 and will continue its ongoing consultations
with governments and other stakeholders to meet Canadas Kyoto goals.
CHALLENGES
Increased efforts are required to sensitize companies in the
textile industry to the long-term implications of Canadas Kyoto commitments
and to encourage active participation in Canadas National Implementation
Strategy on Climate Change. The task force believes that one of its key challenges
is to gain the active participation of more of the industrys major producers
as Industrial Energy Innovators, and the group is continuing to work toward
this end. In addition, companies must be encouraged to adopt a benchmarking
and best-practices approach to energy management.
The Textiles Sector Energy Task Force and the Canadian Textiles
Institute have devoted significant time and resources to addressing these challenges.
These organizations plan to continue and intensify their efforts.
* |
Under the new North American Industry Classification System (NAICS), textile producers are classified under Artificial and Synthetic Fibres/Filaments Manufacturing (NAICS 32522), Textile Mills (NAICS 313) and Textiles Products Mills (NAICS 314). NAICS Subgroup 32522 includes producers of synthetic fibres and filaments. NAICS Group 313 comprises establishments that are primarily engaged in manufacturing, finishing or processing yarn or fabrics. NAICS Group 314 includes establishments primarily engaged in manufacturing textile products (except clothing) such as carpets, household textiles, etc. Changes to the classification of industries by Statistics Canada from the Standard Industrial Classification (SIC) to NAICS means that energy data for the synthetic fibre industry are no longer available separately. The statistics contained in this profile cover only NAICS Groups 313 and 314 as described above. |
Transportation Equipment Manufacturing
Profile The Canadian transportation equipment manufacturing sector includes
companies that manufacture aircraft, aircraft parts, automobiles,
motor vehicle parts, trucks, buses, trailers, military vehicles, railroad rolling
stock, ships and pleasure boats. The sector is a major part of the
Canadian economy, accounting for nearly 3 percent of Canadas GDP and more
than 16 percent of Canadas total manufacturing GDP in 2001.
Including dealers, parts and distribution networks, the sector employs more
than a half a million people across Canada.
Performace Highlights
- Despite an upturn in the Canadian economy at the end of 2001, the value of the total output of the transportation manufacturing sector for the year still decreased by 4.2 percent.
- Between 1990 and 2001, the sector recorded an overall improvement in energy intensity of 30.9 percent.
- Honda of Canada Mfg., Toyota Motor Manufacturing Canada Inc. and The Woodbridge Group joined the Transportation Sector Equipment Manufacturing Task Force in 2001, bringing additional automotive industry representation to the table.
- General Motors of Canada Limited reduced its total energy consumption by 41 percent from 1990 to 2001 through rationalization of production and energy conservation projects.
- The Woodbridge Group introduced an energy-reduction management system in 2002, resulting in the identification of potential energy savings.
- In 2001, Honda reduced the electricity requirements of a compressed-air
system that resulted in a CO2e emissions reduction of approximately
56 tonnes per year.
- Ford Motor Company of Canada, Limited implemented a heat recovery system at its casting plant in Windsor, Ontario, resulting in a potential energy reduction of 225 000 mmBTU per year.
ACTIONS
The CIPEC Transportation Equipment Manufacturing Sector Task Force continues to pursue the activities outlined in its 2001–2003 action plan. Individual sector members have made significant advances in energy efficiency.
In 2002, The Woodbridge Group introduced an energy-reduction management system and delivered a customized Dollars to $ense energy training program across 57 locations worldwide. Eight training sessions alone enabled the company to identify $600,000 in energy savings opportunities. The Woodbridge Group has established a company-wide energy-reduction goal of 10 percent for 2003.
In 2001, Honda of Canada Mfg. reduced the electricity requirements of the
compressed-air system in its Civic manufacturing plant by supplementing 1000-hp
compressors with smaller, 500-hp units. Honda estimates that this project
has led to a reduction in CO2e emissions of approximately 56
tonnes per year. Honda has also taken steps to eliminate leaks in its compressed-air
system and to reduce compressed-air demand by switching some assembly tools
to electric power.
Ford Motor Company of Canada, Limited continues to seek opportunities to improve the energy efficiency of its manufacturing facilities. The company has installed a heat recovery system on the cupola melting process at its casting plant in Windsor, Ontario, enabling the plant to recover waste energy and redistribute it to areas of the plant where it is needed. The company expects this project to reduce energy usage by 225 000 mmBTU per year.
Toyota Motor Manufacturing Canada Inc. saw total energy-reduction results in excess of 168 665 mmBTU per year. Although capital input was minimal, most reductions resulted from delaying booth and oven starts, changing downdrafts in paint-shop ovens and booths, reducing plant temperature set-points and eliminating processes where quality improvement activities had made them redundant.
The Transportation Equipment Manufacturing Sector Task Force continued its tradition of promoting energy efficiency at its sixth annual One Day Energy Conference, held at General Motors of Canada Limited Headquarters in Oshawa, Ontario. Another annual energy conference is scheduled for the first quarter of 2003.
ACHIEVEMENTS
Despite a dramatic year-end economic upturn (assisted in large
part by a no-interest purchase financing program in the automotive sector),
the value of the total output of the transportation equipment manufacturing
sector for 2001 still decreased by 4.2 percent. Energy usage for the year decreased
by 9.0 percent over 2000, more than double the decrease in output. Consequently,
the sectors energy intensity decreased by 5.2 percent. In 2001, the sector
consumed 57 930 TJ, up 15.8 percent from 1990. Over the same period, gross output
increased by 93.2 percent, leading to an overall improvement in energy intensity
of 30.9 percent.
Energy use by fuel type has remained fairly constant since 1990,
with natural gas (55 percent) and electricity (36 percent) making up the bulk
of the energy used. Liquid petroleum gases, middle distillates (No. 2 fuel oil)
and heavy fuel oil use increased by 12 percent in 2001 compared with 2000, due
largely to the rapid escalation of natural gas prices. The use of these fuels,
which was previously in a long period of decline, will undoubtedly continue
to increase until natural gas prices return to historical levels.
CHALLENGES
The predicted downturn in the United States economy, especially
in the automotive sector, will have a detrimental effect on the transportation
equipment manufacturing sectors energy intensity. Economically motivated
plant downtime will lead to the under-utilization of facilities, thereby raising
energy intensity numbers despite an overall decrease in energy consumption.
Although the transportation equipment manufacturing sector is committed to continuously
improving quality, environmental performance and energy efficiency, investment-payback
requirements of less than two years and internal competition for funds are challenging
energy managers who are seeking to make major gains. Moreover, energy efficiency
improvements arising from the implementation of new technology are likely to
be offset by trends that are driving energy use higher. These trends include
the increased use of cooling to improve working conditions, more demanding pollution
control and a shift to more energy intensive products and processes.
Sector companies are already efficient energy users, and there
are relatively few cost-effective opportunities for dramatic gains, even under
the pressure of higher energy costs. Unless there are major advances in technology,
energy efficiency improvements are likely to come in small increments.
Upstream Oil and Gas
Profile The upstream oil and gas sector includes the companies that
find and develop Canadas vast hydrocarbon reserves. This dynamic
exploration and production industry is represented by the Canadian Association
of Petroleum Producers (CAPP) and the Small Explorers
and Producers Association of Canada (SEPAC). The member companies of these associations
account for more than 99 percent of the
crude oil and natural gas produced in Canada and are an important part of a
$60 billion-a-year national industry that affects the livelihoods
of more than half a million Canadians.
Performance Highlights
- Increasing numbers of upstream oil and natural gas companies are voluntarily embracing the industrys principles of stewardship. As of January 2003, all producing members of CAPP must commit to its Stewardship initiative.
- Between 1996 and 2001, the industry reduced gas flaring in Alberta by 53 percent.
- A credit of 2500 tonnes of CO2 has been granted to Calpine
Canada Resources Company for recovering and recycling oil from oil-field
waste.
- GHG-reduction projects implemented in 2001 and 2002 have enabled ConocoPhillips Canada to reduce emissions by approximately 223 kilotonnes of
CO2e emissions per year.
- Petro-Canada uses an environmentally sensitive drilling rig in the Mackenzie Delta that saves fuel and reduces emissions of NO and CO .
The sector is currently working with NRCans Office of Energy Efficiency to develop indices and figures.
ACTIONS
The upstream oil and gas sector is a strong proponent of environmental performance and energy conservation. Guides to best industry practices, thoughtful input into proposed legislative changes, and sponsorship of research and development that enhances industrys efficiency and reduces its effects are just a few of the ways that CAPP and SEPAC promote energy efficiency and environmental protection across the country. The industry has come a long way during the past decade and is committed to continued and further progress.
In 1999 CAPP established its Stewardship initiative, a voluntary program to encourage members to continually improve their environmental, health and safety performance and to report their progress to stakeholders. The Stewardship initiative provides quantitative benchmarks that allow firms to gauge areas of excellence and identify operations that need improvement. As of January 2003, all of CAPPs producing member companies must commit to the Stewardship initiative.
CAPP and SEPAC are developing a guide to help companies with calculations and methodologies for company-operated facilities on a gross-production basis and to empower facility operators to implement efficiency programs. The CAPP-SEPAC guide will also eliminate double-counting of emissions. CAPP member companies have agreed to use production energy intensity (PEI) and production carbon intensity (PCI) as standardized GHG performance indicators.
Following are examples of individual petroleum producers that have made significant strides toward improved energy efficiency and reduced GHG emissions.
Even while recording strong growth and increased production, EnCana Corporation has made significant progress in reducing absolute GHG emissions and emissions intensity. EnCanas absolute GHG emissions for 2001 were more than 2 megatonnes lower than its emissions in 2000.
From 2000 to 2001, Calpine Canada Resources Company actively worked to identify
and implement actions to improve its energy efficiency, heat recovery and capture
of vented or flared gas. Calpines overall gross production volumes increased
10 percent over that period, while corresponding CO2e emissions
remained constant. In a joint project recognized by CleanAir Canada Inc.
for creating emissions credits, Newalta Corporation granted Calpine a credit
of 2500 tonnes of CO2 for recovering and recycling oil from
oil-field waste.
GHG-reduction projects implemented in 2001 and 2002 have enabled ConocoPhillips
Canada to reduce emissions by approximately 223 kilotonnes of CO2e
emissions per year. Further actions planned for 2003 and 2004 will lower
annual GHG emissions by an additional 56 kilotonnes of CO2e,
an 8.6 percent reduction compared with 2001.
Petro-Canada uses an environmentally sensitive drilling rig to explore for natural gas in the Mackenzie Delta. The rig is designed to redistribute all of the waste heat it generates while operating, saving fuel and reducing emissions of NO and CO .
ACHIEVEMENTS
As noted, as of January 1, 2003, all CAPP producer members must
commit to the Associations Stewardship initiative. CAPP is developing
practical tools that include presentations, workshops and implementation manuals
to help its member companies meet their commitments.
In 1997 the Alberta Energy and Utilities Board and the Clean
Air Strategic Alliance, along with various stakeholders, began a review of gas
flaring in Alberta. By voluntarily pursuing the project teams recommendations,
the industry achieved a 53 percent reduction in flaring by the end of 2001 (as
compared with 1996), surpassing the projects targets. The industry has
now turned its attention to the related issue of venting.
The upstream oil and gas sector is committed to research and
development. For example, eight of the worlds largest energy companies
are participating jointly in the international CO2 Capture Project
to reduce the overall cost of the capture, transport and storage
of CO2.
CHALLENGES
Rising energy demands and higher prices have led to a rapid increase
in exploration and development. Greater activity in the field translates into
more energy consumption, making a reduction in overall energy use within the
sector unlikely in the short term. However, sector companies have made substantial
progress in reducing their energy intensity and, consequently, their carbon
intensity.
Upstream oil and gas operations emit GHGs through the combustion
of natural gas, propane and diesel; the process venting and fugitive emissions
of methane; and the process venting of CO2. The industry is also
concerned about indirect emissions related to its purchase of electricity generated
by fossil-fuel combustion. The sector is addressing each of these challenges
through research and innovation and by sharing its successes throughout the
industry.
Wood Products
Profile The wood products sector includes three industry groups: establishments
engaged in sawing logs into lumber and similar products; companies that make
products that improve the natural characteristics of wood by manufacturing veneers,
plywood, reconstituted wood panel products and engineered wood assemblies; and
establishments that make a diverse range of wood products, such as millwork.
At the end of 2001, the industry consisted of nearly 3000 establishments across
Canada that employed just under 20 000 workers.
Performance Highlights
- Weldwood of Canada Limiteds HI-ATHA sawmill does not generate any fossil-fuel GHG emissions during normal operations.
- Energy efficiency improvements at Riverside Forest Products Limited, Armstrong
Division have resulted in an average GHG emissions reduction of 0.264 tonne
of CO2e per year per 1000 MSF (thousand square feet) of
plywood produced.
- Tembec Industries Inc. has established its Impact Zero® program to minimize the effect of manufacturing activities on the environment.
- Erie Flooring and Wood Products has made significant improvements to its energy efficiency.
- Forintek Canada Corp.s industry-wide energy benchmarking project is well underway.
- Wood products companies continue to develop cost-effective biomass energy systems to reduce the use of costly natural gas and electricity.
ACTIONS
Forest product companies are actively building energy efficiency through improved operating methods and ongoing capital investment. For example, Weldwood of Canada Limiteds HI-ATHA sawmill in Hinton, Alberta, does not generate any fossil-fuel GHG emissions during normal operations. Wood-waste fuel provides nearly all mill heating, including kiln drying. The mills electricity is generated using biomass fuel at the adjacent Hinton pulp mill operation. The mill has reduced its propane consumption – used for winter heating – from an average of 225 000 litres to 50 000 litres by capturing surplus heat generated by wood waste from its lumber-drying kilns.
Between 1990 and 2000, Domtar Inc.s GHG emissions from fossil fuels rose only 3.5 percent while production increased by 24.6 percent. This is a direct result of energy-reduction and continuous improvement activities throughout the company, better working practices that maximize the use of resources, improved efficiency, the elimination of waste and the replacement of fossil fuels by renewable biomass fuels.
Over the last three years, Riverside Forest Products Limited, Armstrong Division
in Armstrong, British Columbia, has made improvements to its process furnaces,
dryers and kilns and to systems for its motor drives, the boiler plant, water,
lighting, heating, ventilation and air conditioning. The company has also advanced
its use of cogenerated steam and electricity. These improvements have resulted
in an annual average 0.61 percent reduction in GHG emissions, or 0.264
tonne of CO2e per year per 1000 MSF (thousand square feet) of plywood produced. The company will continue to improve its operating, process and equipment efficiency and to reduce fossil-fuel consumption by drawing more energy from biomass sources.
Tembec Industries Inc. is committed to integrating sustainable development
into its operations and to continually improving its environmental performance.
To attain these objectives, Tembec has established the Impact Zero®
program for its manufacturing facilities. The main goal of Impact Zero®
is to minimize the effect of manufacturing activities on the environment.
The program includes the development of environmental objectives, targets and
action plans and the implementation and maintenance of an environmental management
system in accordance with ISO 14001.
In its first year since becoming a CIPEC Industrial Energy Innovator, Erie Flooring and Wood Products of West Lorne, Ontario, has made significant improvements to its energy efficiency. By improving its boiler plant and systems for process heating, motor drives and lighting and climate control, the company has reduced its energy consumption by 10 percent per year. The company plans to continue to upgrade its older equipment with alternatives that are more energy efficient, install additional variable frequency motors and evaluate the potential for cogeneration.
Forintek Canada Corp.s energy benchmarking project is well
underway. The project, which has received funding from NRCans Office of
Energy Efficiency, is designed to support the CIPEC Wood Products Sector Task
Forces efforts to promote energy efficiency in the solid wood industry.
Forintek is examining industry performance in Canada and is developing benchmarking
data to establish energy efficiency targets, action plans, policies and best
practices within the sectors companies. To help refine its energy auditing
procedures, Forintek has performed pre-audits on two mills and will begin auditing
other facilities when company questionnaires are received. Forintek is also
collecting general statistics on energy consumption in Canada and competing
countries and is developing recommendations about the technologies in use in
Canadian mills.
ACHIEVEMENTS
The wood products sector consumed 70 769 TJ of fossil fuels and
electricity in 2001. Although rising production in the sector has driven energy
consumption upward, actions taken by companies to improve energy efficiency
have led to substantial gains in energy intensity.
Recent rises in energy prices will provide a powerful incentive
for wood products manufacturers to implement low-cost energy efficiency measures.
Companies will likely continue to develop cost-effective biomass energy systems
based on wood waste, displacing the use of costly natural gas and electricity.
CHALLENGES
Companies in the wood products sector have continued to make
investments and introduce measures that improve energy efficiency. However,
ongoing adverse economic factors continue to make it exceedingly difficult for
most forest products companies to invest in energy efficiency. Economic realities
are also forcing companies to pursue new markets and to manufacture higher-value
products that require more energy to produce.
Seeking to maintain production efficiency at sustainable levels,
Canadian wood products companies have closed facilities and allocated production
to fewer mills. Although the closure of facilities will reduce the sectors
total energy consumption over the short term, the lack of investment in energy
efficiency makes it unlikely that the industry will be able to make significant
improvements in energy intensity.
Industrial Energy Innovators
Through NRCans Office of Energy Efficiency (OEE), the Industrial Energy Innovators program focuses on transforming the sector-level commitments made by task forces into company-level action by helping to overcome obstacles to energy efficiency at the company level.
As of April 1, 2002, 374 manufacturing and mining companies – representing
approximately 85 percent of industrial energy use in Canada – have signed
on as Industrial Energy Innovators. The majority of these companies are participants
in Canadas Climate Change Voluntary Challenge and Registry Inc. (VCR Inc.),
a non-profit partnership between industry and government across Canada. VCR
Inc. provides the means for promoting, assessing and recognizing the effectiveness
of the voluntary approach in addressing climate change. In addition, 65 Industrial
Energy Innovators and five trade associations have earned VCR Inc.s Gold,
Silver or Bronze Level Champion Reporter status.
CIPEC has strengthened the participation of Industrial Energy Innovators in VCR Inc. through a number of activities. These include programs to increase awareness of the economic benefits of improved energy use, tools to remove barriers that hinder energy management improvement projects within companies, and ideas to promote effective energy management systems within individual companies. CIPEC believes that parallel efforts among like-minded organizations are needed to maximize Canadas industrial energy efficiency.
For information on becoming an Industrial Energy Innovator, contact the OEE
by e-mail at cipec.peeic@nrcan.gc.ca or visit the Web site at oee.nrcan.gc.ca/cipec.
Industrial Energy Innovators by Sector
Aluminum
Alcan Inc.
Alcoa – Aluminerie de Baie Comeau
Alcoa – Aluminerie de Bécancour Inc.
Alcoa – Aluminerie Lauralco, Inc.
Aluminerie Alouette Inc.
Brewery
Big Rock Brewery Ltd.
Labatt Breweries of Canada
Molson Breweries – Edmonton Brewery
Molson Canada – Ontario
Moosehead Breweries Ltd.
Sleeman Brewing and Malting Co. Ltd.
Cement
ESSROC Canada Inc.
Gordon Shaw Concrete Products Ltd.
Lafarge Canada Inc.
Lehigh Inland Cement Limited
St. Lawrence Cement Inc.
Tilbury Cement Ltd.
Chemical
Chinook Group Limited – Sombra Plant
Degussa-Hüls Canada Inc.
DuPont Canada Inc.
MDS Nordion Inc.
Nacan Products Limited
NOVA Chemicals Corporation
OxyVinyls Canada Inc.
Rohm and Haas Canada Inc.
Construction
Lockerbie & Hole Industrial Inc.
Dairy
Agrinor Inc.
Agropur
Armstrong Cheese Company Ltd. – Alberta
Foothills Creamery Ltd.
Hewitts Dairy Limited
Laiterie Chagnon Ltée
Lone Pine Cheese Ltd.
Le Mouton Blanc
Parmalat Dairy & Bakery Inc.
Pine River Cheese & Butter Co-operative
Roman Cheese Products Ltd.
Salerno Dairy Products Ltd.
Electrical/Electronics
ASCOlectric Ltd.
Broan-NuTone Canada
Camco Inc.
Century Circuits Inc.
Crest Circuit Inc.
Honeywell Limited
IBM Canada Ltd.
Milplex Circuit (Canada) Inc.
Nortel (Northern Telecom Limited)
Osram Sylvania Ltd.
PC World – Division of Circuit World
Corporation
Vansco Electronics Ltd.
Electricity Generation
Ontario Power Generation Inc.
Fertilizer
IMC Potash Belle Plaine
IMC Potash Colonsay
IMC Potash Esterhazy
Potash Corp. of Saskatchewan Inc.
– Allan Division
– Cory Division
– Lanigan Division
– New Brunswick Division
– Patience Lake Division
– Rocanville Division
Food and Beverage
Alberta Processing Co., A Division of
West Coast Reduction Ltd.
Andrés Wines Ltd.
API Grain Processors
Beta Brands Limited
Better Beef Ltd.
Black Velvet Distilling Co.
Borden Foods Canada
Burnbrae Farms Ltd. – Mississauga
Canada West Foods J.V. Inc.
Canamera Foods
Canbra Foods Ltd.
Canyon Creek Soup Company Ltd.
Cargill Animal Nutrition – Camrose Plant
Cargill Animal Nutrition – Lethbridge Plant
Cargill Foods – High River Plant
Carson Foods
Casco Inc.
Champion Petfoods
Coca-Cola Bottling Ltd.
Cuddy Food Products
Don Chapman Farms Ltd./
Lakeview Vegetables Inc.
Effem Inc.
Family Muffins & Desserts Inc.
Furlanis Food Corporation
Garden Province Meats Inc.
Greenview Aquafarm Ltd.
H.J. Heinz Company of Canada Ltd.
Heritage Frozen Foods Ltd.
Hershey Canada Inc.
Hubberts Industries
Hub Meat Packers Ltd. – Sunrise Brand
J.R. Ouimet Inc.
Kraft Canada Inc.
Legal Alfalfa Products Ltd.
Lilydale Cooperative Ltd.
Maple Leaf Foods Inc.
Maple Lodge Farms Ltd.
Marsan Foods Limited
McCain Foods (Canada) – Alberta,
A Division of McCain Foods Limited
Mitchells Gourmet Foods Inc.
Nestlé Canada Inc.
Northern Alberta Processing Co.,
A Division of West Coast Reduction Ltd.
Oakrun Farm Bakery Ltd.
Les Oeufs Bec-O Inc.
Olymel, L.P.
Pepsi-Cola Canada Beverages
Prairie Mushrooms (1992) Ltd.
Principality Foods Ltd.
Reinhart Foods Limited
Quality Fast Foods
Sakai Spice (Canada) Corporation
Schneider Foods
Sunny Crunch Foods Limited
Sunrise Bakery Ltd.
Sun-Rype Products Ltd.
Sun Valley Foods Canada
Transfeeder Inc.
Trochu Meat Processors
Trophy Foods Inc.
Townline Foods/Processing Ltd.
Unifeed Premix
Versacold Corporation
Westcan Malting Ltd.
Westglen Milling Ltd.
Weston Foods Inc.
Foundry
Ancast Industries Ltd.
Bibby-Ste-Croix
Century Pacific Foundry Ltd.
Crowe Foundry Limited
Deloro Stellite Inc.
ESCO Limited – Port Coquitlam Operations
ESCO Limited – Port Hope Operations
Eureka Foundry Corporation
(A Subsidiary of ACI Canada Inc.)
Gamma Foundries Limited
Grenville Castings Limited
Ramsden Industries Limited
Stackpole Limited
Vehcom Manufacturing (A Division of
Comtech Mfg. Ltd.)
Wabi Iron & Steel Corporation
General Manufacturing
3M Canada Inc.
ABCO Property Management Inc.
Acadian Platers Co. Ltd.
Armstrong World Industries Canada Ltd.
Bentofix Technologies Inc.
Canadian Uniform Limited
Champion Feed Services Ltd.
Climatizer Insulation Inc.
Corus s.e.c.
Coyle & Greer Awards Canada Ltd.
Crown Cork & Seal Canada Inc.
Descor Industries Inc.
Dipaolo CNC Retrofit Ltd.
Emco Limited – Building Products
Envirogard Products Ltd.
Escalator Handrail Company Inc.
Euclid-Hitachi Heavy Equipment Ltd.
Federated Co-operatives Limited
Ferraz Shawmut Canada Inc.
Fibrex Insulations, Inc.
Garland Commercial Ranges Limited
Greif Containers Inc.
IKO Industries Ltd.
Imaflex Inc.
Imperial Home Decor Group Canada Inc.
Imperial Tobacco Canada Limited
Interface Flooring Systems (Canada) Ltd.
International Paper Industries Ltd.
J.A. Wilson Display Ltd.
Jones Packaging Inc.
Kindred Industries
Kodak Canada Inc.
LePage (Division of Henkel Canada Limited)
Maksteel Service Centre
(Division of Makagon Industries Ltd.)
Metro Label Company Ltd.
Metroland Printing, Publishing & Distributing Ltd.
Montupet Ltd.
North American Decal
Norwest Precision Limited
Orica Canada Inc.
Owens Corning Canada Inc. – Candiac Plant
Owens Corning Canada Inc. – Toronto Plant
Polytainers Inc.
PowerComm Inc.
Procter & Gamble Inc.
PRO-ECO Limited
Russel Metals Inc. (Alberta)
Saint-Gobain Ceramic Materials
S.C. Johnson and Son, Limited
Sandvik Tamrock Canada Inc.
Sandvik Tamrock Loaders Inc.
Scapa Tapes North America
Simmons Canada Inc.
Soprema Inc. (Drummondville Plant)
Stowe Woodward Co. (British Columbia)
(Division of Cascades Inc.)
Superior Radiant Products Ltd.
Teknion Furniture Systems Inc.
Unifiller Systems, Inc.
VA TECH Ferranti-Packard Transformers Ltd.
VicWest Steel
Wabash Alloys Ontario
Waiward Steel Fabricators Ltd.
Wyeth-Ayerst Canada Inc.
ZENON Environmental Inc.
Lime
Carmeuse Lime (Beachville) Limited
Chemical Lime Company of Canada Inc.
Dundas Lime Limited
Graymont (NB) Inc.
Graymont (QC) Inc.
Graymont Western Canada Inc.
Northern Lime Limited
Mining
Aur Resources Inc.
Barrick Gold Corporation
BHP Billiton Diamonds Inc.
Boliden Limited
Canadian Electrolytic Zinc Limited
Echo Bay Mines Ltd. – Lupin Operation
Falconbridge Limited
Fonderie Horne – Métallurgie Noranda inc.
Hillsborough Resources Limited
Hudson Bay Mining & Smelting Co., Ltd.
Inco Limited
Iron Ore Company of Canada
Mines et exploration Noranda inc. –
Division Matagami
Mines Wabush (Managed by
Compagnie Minière Cliffs inc.)
Newmont Canada Limited, Golden Giant Mine
Noranda Inc. – Brunswick Mining Division
Noranda Inc. – Brunswick Smelter
Noranda Metallurgy Inc.
(Canadian Copper Refinery)
Placer Dome Canada Limited
Quebec Cartier Mining Company
Syncrude Canada Ltd.
Teck Cominco Limited
Petroleum Products
Bitumar Inc.
Canadian Tire Petroleum
Chevron Canada Limited – Burnaby Refinery
Husky Energy Inc.
Imperial Oil Limited
Irving Oil Limited
Parkland Refining Ltd.
Pengrowth Corporation
Petro-Canada
Safety-Kleen Corp.
Shell Canada Products Limited
Suncor Energy Inc. – Sunoco Group
Ultramar Ltd. (Saint-Romuald Refinery)
Plastics
Downeast Plastics Ltd.
Husky Injection Molding Systems Ltd.
The Clorox Company of Canada, Ltd.
Matrix Packaging Inc.
Par-Pak Ltd.
Silgan Plastics Canada Inc.
Pulp and Paper
Abitibi-Consolidated Inc.
Bowater Canadian Forest Products Inc.
Cariboo Pulp and Paper Company Limited
Cascades Inc.
Papiers Stadacona
Domtar Inc.
Emballages Smurfit-Stone Canada inc. –
La Tuque Plant
Eurocan Pulp & Paper Company Limited
F.F. Soucy Inc.
Interlake Paper Limited
Kruger Inc.
Lake Utopia Paper
Marathon Pulp Inc.
Maritime Paper Products Limited
New Skeena Forest Products Inc.
Norampac Inc. (Division of Cascades Inc.)
NorskeCanada
Paperboard Industries International Inc.
(Division of Cascades Inc.)
Perkins Papers Inc. (Division of Cascades Inc.)
Rolland Inc. (Division of Cascades Inc.)
St. Marys Paper Ltd.
Stora Enso North America, Port Hawkesbury Mill
Tembec Paper Group – Spruce Falls Operations
Tolko Manitoba Kraft Papers
UPM-Kymmene Miramichi, Inc.
Weldwood of Canada Limited
West Fraser Timber Co. Ltd.
Rubber
Goodyear Canada Inc.
Hamilton Kent
Michelin North America (Canada) Inc.
NRI Industries Inc.
Steel
Algoma Steel Inc.
AltaSteel Ltd.
Atlas Specialty Steels
(A Division of Slater Stainless Corp.)
CHT Steel Company Inc.
Dofasco Inc.
Gerdau Ameristeel Corporation
Hilton Works (A Division of Stelco Inc.)
Ivaco Inc. (Ivaco Rolling Mills)
Lake Erie Steel Company
(A Division of Stelco Inc.)
Laurel Steel (Division of Harris Steel Limited)
Namasco Limited
QIT – Fer et Titane inc.
Slater Steel Inc. – Hamilton Specialty Bar Division
Stelco Inc.
Stelco-McMaster Ltée
Stelfil Ltée
Stelpipe Ltd.
Stelwire Ltd.
Textiles
Agmont Inc.
Albarrie Canada Limited
Barrday Inc.
Beaulieu Canada Company
Bennett Fleet (Quebec) Inc.
Britex Group (The)
C.S. Brooks Canada Inc. (Magog)
Cambridge Towel Corporation (The)
Cavalier Textiles
Coats Bell
Collingwood Fabrics Inc.
Collins & Aikman Canada Inc.
Consoltex Inc.
CookshireTex inc.
Denim Swift
Doubletex Inc.
Fabrene Inc.
J.L. de Ball Canada Inc.
LaGran Canada Inc.
Lincoln Fabrics Ltd.
Manoir Inc.
Monterey Textiles (1996) Inc.
Nova Scotia Textiles, Limited
PGI-DIFCO Performance Fabrics Inc.
Spinrite Inc.
St. Lawrence Corporation
Stedfast Inc.
Velcro Canada Inc.
VOA Colfab Inc.
Transportation Equipment Manufacturing
ABC Group Inc.
Accuride Canada Inc.
Air Canada Technical Services
Boeing Toronto Limited
Bombardier Aerospace
Bombardier Inc. – Valcourt Plant
Cami Automotive Inc.
Canadian General-Tower Limited
Canadian Pacific Railway Company
DaimlerChrysler Canada Inc.
Dresden Industrial, A Division of
KSR International Co.
Dura Automotive Systems (Canada), Ltd.
Dynaplas Ltd.
Ford Motor Company of Canada, Limited
General Motors of Canada Limited
Honda of Canada Mfg.
Iafrate Machine Works Ltd.
International Truck and Engine
Corporation Canada
Oetiker Limited
Orenda Aerospace Corporation
Orion Bus Industries Inc.
Oxford Automotive, Inc. –
Suspension Division, Chatham
Polywheels Manufacturing Ltd.
Pratt & Whitney Canada Inc.
Presstran Industries
Prévost Car Inc.
Production Paint Stripping Ltd.
R. Reininger & Son Limited
Rockwell Automation Canada Inc.
Russel Metals Inc.
Sterling Trucks, A Division of Freightliner Limited
Toyota Motor Manufacturing Canada Inc.
TRW Automotive
Volvo Cars of Canada Ltd.
Woodbridge Group (The)
Upstream Oil and Gas
BP Canada Energy Company
ConocoPhillips Canada (North) Limited –
Empress Plant
Enbridge Pipelines Inc.
Newalta Corporation
Nexen Canada Ltd.
Paramount Resources Ltd.
Trans World Oil & Gas Ltd.
Taurus Exploration Ltd.
Wood Products
Canfor Corporation
Erie Flooring and Wood Products
Madawaska Doors Inc.
Marcel Lauzon Inc.
Nexfor Inc.
Riverside Forest Products Limited,
Armstrong Division
Tembec Industries Inc.
Weyerhaeuser Canada Ltd.
Association Members
Aerospace Industries Association of Canada
Alberta Food Processors Association
Aluminium Association of Canada
Automotive Parts Manufacturers Association
Baking Association of Canada
Canadian Association of Manmade Vitreous
Fibre Manufacturers
Canadian Association of Petroleum Producers
Canadian Chamber of Commerce
Canadian Chemical Producers Association
Canadian Construction Association
Canadian Council of Grocery Distributors
Canadian Electricity Association
Canadian Fertilizer Institute
Canadian Foundry Association
Canadian Gas Association
Canadian Lime Institute
Canadian Manufacturers & Exporters (CME)
– CME Alberta Division
– CME British Columbia Division
– CME Manitoba Division
– CME New Brunswick Division
– CME Newfoundland Division
– CME Nova Scotia Division
– CME Ontario Division
– CME Prince Edward Island Division
Canadian Meat Council
Canadian Petroleum Products Institute
Canadian Plastics Industry Association
Canadian Steel Environmental Committee
(Canadian Steel Producers Association)
Canadian Textiles Institute
Canadian Vehicle Manufacturers Association
Cement Association of Canada
Council of Forest Industries
Electro-Federation Canada
Fisheries Council of Canada
Food and Consumer Products Manufacturers of Canada
Forest Products Association of Canada
Forintek Canada Corporation
Mining Association of Canada
Ontario Agri Business Association
Ontario Food Producers Association
Packaging Association of Canada
Québec Forest Industries Association
Rubber Association of Canada
Small Explorers and Producers Association of Canada
Industrial Programs Division Staff
Tim Norris
Director
Tel.: (613) 996-6872
E-mail: tnorris@nrcan.gc.ca
Philip B. Jago
Assistant Director
Tel.: (613) 995-6839
E-mail: pjago@nrcan.gc.ca
Catriona Armstrong
Industry Officer
Tel.: (613) 992-3286
E-mail: carmstro@nrcan.gc.ca
Jean-Marc Berrouard
Industry Officer
Tel.: (613) 943-2224
E-mail: jberroua@nrcan.gc.ca
Marlene Blakney
Senior Industry Officer
Tel.: (613) 996-8278
E-mail: mblakney@nrcan.gc.ca
Beryl Broomfield
Program Assistant
Tel.: (613) 947-4828
E-mail: bbroomfi@nrcan.gc.ca
Mark Butkus
Writer/Editor
Tel.: (613) 943-0125
E-mail: mbutkus@nrcan.gc.ca
Monique Caouette
Program Manager, Dollars to $ense Workshops
Tel.: (613) 996-2494
E-mail: caouette@nrcan.gc.ca
Marguerite Dehler
Senior Industry Officer
Tel.: (613) 992-1545
E-mail:
Hydie Del Castillo
Program Assistant, Dollars to $ense Workshops
Tel.: (613) 947-2047
E-mail: hdelcast@nrcan.gc.ca
Suzanne Forget-Lauzon
Publications and Database
Tel.: (613) 992-3254
E-mail: sforgetl@nrcan.gc.ca
Eric Gingras
Industry Officer
Tel.: (613) 943-5326
E-mail: egingras@nrcan.gc.ca
Sonia Ieria
Industry Officer
Tel.: (613) 944-4506
E-mail:
Patricia Lieu
Industry Officer
Tel.: (613) 995-3737
E-mail: plieu@nrcan.gc.ca
Vaughn Munroe
Senior Technical Services Advisor
Tel.: (613) 947-1594
E-mail: vmunroe@nrcan.gc.ca
Kari-Lynn Philipp
Industry Officer
Tel.: (613) 943-2361
E-mail: kphilipp@nrcan.gc.ca
Melanie Phillips
Senior Industry Officer
Tel.: (613) 995-3504
E-mail: mphillip@nrcan.gc.ca
Andrew Powers
Program Assistant
Tel.: (613) 996-5125
E-mail: apowers@nrcan.gc.ca
Keith Quach
Senior Industry Officer
Tel.: (613) 992-3288
E-mail: kquach@nrcan.gc.ca
Johanne Renaud
Program Officer, Dollars to $ense Workshops
Tel.: (613) 996-6585
E-mail: jrenaud@nrcan.gc.ca
Glenda Taylor
Senior Industry Officer
Tel.: (613) 992-3422
E-mail: gtaylor@nrcan.gc.ca
Miranda Williamson
Industry Officer
Tel.: (613) 996-7744
E-mail: miwillia@nrcan.gc.ca
Glossary of Terms
Annual Census of Mines
NRCan survey that collects information on NAICS 2122 (Metal Mining) and NAICS
2123 (Non-Metal Mineral Mining and Quarrying). Full name is Annual Census of
Mines, Quarries and Sand Pits.
Annual Survey of Manufacturers (ASM)
Statistics Canada survey. Provides information on the consumption of purchased
fuels and electricity (CPFE) for approximately 230 sub-sectors at four-digit
NAICS code levels.
Base Year
A reference year. For the Framework Convention on Climate Change, 1990 is the
base year.
Canadas Climate Change Voluntary Challenge and Registry Inc. (VCR
Inc.)
VCR Inc. is a key element of Canadas National Action Program on Climate
Change. It encourages the private and public sectors to take voluntary steps
to limit or reduce GHG emissions. As a first step, participants are encouraged
to submit a letter of intent confirming a commitment to limit or reduce GHGs
from their operations. This is followed by an action plan and subsequent progress
reports. The Industrial Programs Division of NRCans Office of Energy Efficiency
provides a means for manufacturing, mining, construction and energy supply companies
to enrol in VCR Inc.
Carbon Dioxide (CO2)
A compound of carbon and oxygen that in its normal gaseous state is clear and
colourless. CO2 is formed whenever carbon-bearing fuels are burned.
It can also be formed via other reactions that do not involve combustion.
Carbon Dioxide Equivalent (CO2e)
A metric measure used to compare the emissions of the different GHGs based upon
their global warming potential. Global warming potentials are used to convert
GHGs to CO2e.
Economic Energy Intensity
Energy consumption per unit of economic output.
Embodied Energy
The energy consumed to transform all upstream raw materials into the final product;
in a life-cycle approach, it would be the cradle to grave energy
burden.
Energy Intensity
Energy consumption per unit of output.
Energy Intensity Indicator
A dimensionless ratio equal to the energy intensity in a particular year divided
by the energy intensity of the base year. The energy intensity indicator for
the base year equals 1.0.
Energy Performance Measures
Any of a variety of metrics that would indicate an aspect of energy performance.
Framework Convention on Climate Change
United Nations convention to address climate change signed by more than 150
countries at the United Nations Conference on Environment and Development in
Rio de Janeiro in June 1992. Canada became the eighth country to ratify the
Convention, which entered into force on March 21, 1994, thereby committing to
work toward stabilizing GHG emissions at 1990 levels by the year 2000.
Greenhouse Gas (GHG)
A GHG absorbs and radiates heat in the lower atmosphere that otherwise would
be lost in space. The greenhouse effect is essential for life on this planet
since it keeps average global temperatures high enough to support plant and
animal growth. The main GHGs are carbon dioxide (CO2),
methane (CH4), hlorofluorocarbons (CFCs) and nitrous oxides
(N2O). By far the most abundant GHG is CO2,
accounting for 70 percent of the greenhouse effect.
Gross Domestic Product (GDP)
The total value of goods and services produced by the nations economy
before deduction of depreciation charges and other allowances for capital consumption,
labour and property located in Canada. It includes the total output of goods
and services by private consumers and government, gross private domestic capital
investment and net foreign trade. GDP figures are reported in real 1997 dollars
unless otherwise noted.
Higher Heating Value
The amount of heat that is obtained when a specified amount of fuel is combusted
with its stoichiometrically correct amount of air, both being at 15°C when
combustion starts, and the products of combustion being cooled to 15°C before
the heat release is measured (also called gross calorific value or gross heating
value).
Industrial Consumption of Energy (ICE) Survey
Statistics Canada survey on energy use. Covers purchased and non-purchased energy
for approximately 24 industrial sub-sectors.
Lower Heating Value
The higher heating value minus the latent heat of vaporization of the water
vapour formed by the combustion of any hydrogen present in the fuel. For a fuel
with no hydrogen, the higher and lower heating values are the same (also called
the lower calorific value or the net heating value).
Natural Resources Canada (NRCan)
The predominant natural resource department of the Government of Canada, NRCan
has a mandate to promote the sustainable development and responsible use of
Canadas mineral, energy and forestry resources and to develop an understanding
of Canadas land mass.
Nitrogen Dioxide (NO2)
One of a group of gases called nitrogen oxides, which are composed of nitrogen
and oxygen. Like sulphur dioxide, nitrogen oxides can react with other chemicals
in the atmosphere in the presence of sunlight to form acidic pollutants, including
nitric acid.
Nitrogen Oxides (NOx)
The sum of nitric oxide (NO) and nitrogen dioxide (NO2). Nitrogen
oxides react with volatile organic compounds in the presence of sunlight
to form ground-level ozone.
North American Industry Classification System (NAICS)
A classification system that categorizes establishments into groups with similar
economic activities. The structure of NAICS, adopted by Statistics Canada in
1997 to replace the 1980 Standard Industrial Classification (SIC) system, has
been developed by the statistical agencies of Canada, Mexico and the United
States.
Physical Energy Intensity
Energy consumption per unit of physical output.
Quarterly Report on Energy Supply and Demand (QRESD)
Provides an energy balance of all energy consumption in Canada. QRESD data on
the manufacturing industries are gathered principally by the Industrial Consumption
of Energy (ICE) survey. These data are supplemented by other surveys on the
disposition of energy (from utilities) and the production of petroleum products.
Specific Energy (Consumption)
Energy consumption per physical unit of output (also called physical energy
intensity).
Standard Industrial Classification (SIC)
A classification system that categorizes establishments into groups with similar
economic activities.
Statistics Canada
Statistics Canada is the countrys national statistical agency, with programs
organized into three broad subject areas: demographic and social, socio-economic
and economic. Under the Statistics Act, Statistics Canada is required to collect,
compile, analyse, abstract and publish statistical information on virtually
every aspect of the nations society and economy. All information given
to Statistics Canada through surveys, the census or any other source is confidential.
Statistics Canada does not release any information that identifies an individual
or organization.
Sulphur Oxides (SOx)
A product of combustion of fuels that contain sulphur. SOx is a major
component of acid rain.
Tier I
Informal designation by CIPEC of industries that are major energy-consuming
industries. The seven designated Tier I industries are pulp and paper, petroleum
refining, cement, mining, steel, chemicals and aluminum. The Tier I industries
account for approximately 80 percent of total Canadian industrial energy consumption.
Tier II
Informal designation by CIPEC of industries that are minor energy-consuming
industries (relative to Tier I industries) but contribute substantially to Canadian
industrial GDP. Tier II industries account for 60 percent of Canadian industrial
GDP.
For more information or to receive additional copies of this publication,
write to
Canadian Industry Program for Energy Conservation
c/o Natural Resources Canada Office of Energy Efficiency
580 Booth Street, 18th Floor
Ottawa ON K1A 0E4
Tel.: (613) 995-6839
Fax: (613) 992-3161
E-mail: cipec.peeic@nrcan.gc.ca
Web site: oee.nrcan.gc.ca/cipec
Leading Canadians to Energy Efficiency at Home, at Work and on the Road
The Office of Energy Efficiency of Natural Resources Canada strengthens and expands Canadas commitment to energy efficiency in order to help address the challenges of climate change.
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