Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2005-2006

Chapter 6: Transportation

Energy Use and Greenhouse Gas Emissions

The transportation sector consists of three sub-sectors: passenger, freight and off-road. Passenger and freight transportation accounted for 54.1 percent and 42.0 percent, respectively, of transportation energy use, with off-road representing only 3.9 percent in 2004. The passenger sub-sector is composed of three modes: road, rail and air. The freight sub-sector, as defined by Natural Resources Canada (NRCan), is composed of road, rail, air and marine. Road transport uses the most energy, accounting for 78.3 percent of total transportation energy use in 2004. Of this amount, 56.8 percent was passenger energy use and 43.2 percent was freight energy use (see Figure 6-1).

All NRCan transportation energy-use programs focus on the energy used in road transportation. Total transportation energy use increased by 31.3 percent (587 petajoules) over 1990 to 2004 (see Figure 6-2). Passenger transportation energy use increased by 17.1 percent (195 petajoules), while freight transportation energy use increased by 51.1 percent (350 petajoules).

Three main factors influenced energy use:

• activity – due to increases in population and economic activity, there was greater transportation activity (measured as passenger-kilometres for passenger transportation and tonne-kilometres for freight transportation). This increased transportation energy use by 35.7 percent (670 petajoules). The freight and passenger segments contributed to this increase by 52.0 percent and 48.0 percent, respectively.
• structure – shifts between modes of transport within both the freight and passenger segments resulted in an increase of 10.5 percent in transportation energy use (197 petajoules). The effects of mode shifting were more pronounced in the freight segment since freight truck activity is growing significantly faster than rail and marine.
• energy efficiency – improvements in energy efficiency worked to decrease energy use by 16.8 percent (315 petajoules).

Without improvements in energy efficiency, increases attributable to activity and structure would have led to an increase in transportation energy use of 48.0 percent (867 petajoules). However, as a result of improvements in energy efficiency, actual energy use increased by 31.3 percent. This change in energy use between 1990 and 2004, as well as the estimated energy savings due to energy efficiency, is shown in Figure 6-2.

Transportation Energy Use by Mode, 2004.

Transportation Energy Use, Actual and Without Energy Efficiency Improvements, 1990 to 2004.

The transportation sector accounts for 28.9 percent (2465 petajoules) of secondary energy use and 34.9 percent (176 megatonnes) of greenhouse gas (GHG) emissions. From 1990 to 2004, transportation energy use increased by 31.3 percent, and GHG emissions increased by 30.6 percent. The change in GHG intensity of transportation energy use was negligible.

Figure 6-3 shows how the market share of new light trucks increased in the 1990s, reflecting the growth in popularity of minivans and sport-utility vehicles. Figure 6-4 demonstrates that, on a per-kilogram or per-unit-ofhorsepower basis, fuel efficiency has improved markedly. However, average fuel economy has been stable because new vehicles continue to be heavier and have more powerful engines.

Figures 6-5 and 6-6 illustrate an improvement in trucking energy intensity despite an increase in average activity over 1990 to 2004. Improved fleet practices, caused by an increase in the competitiveness of the transportation sector and by the introduction of electronic engines, have significantly improved engine fuel efficiency in medium-duty and heavy-duty trucks.

Market Shares of New Passenger Car and Light Truck Sales, 1990 to 2004.

New Car Fuel Efficiency, Normalized for Weight and Power, 1990 to 2003.

Average Activity per Truck (tonnes kilometres/truck), 1990 to 2004.

Trucking Energy Intensity, 1990 to 2004.

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

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

Vehicles: Vehicle Efficiency

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

The goal of the Motor Vehicle Fuel Efficiency Initiative is to bring about a 25 percent improvement in the fuel efficiency of new light-duty vehicles sold in Canada by 2010. NRCan led negotiations with the automotive industry to a successful conclusion, reaching an agreement to reduce GHG emissions from this sector. The auto industry committed to a voluntary reduction in GHG emissions of 5.3 megatonnes (Mt) annually from light-duty vehicle use by 2010. This 5.3 Mt target goes beyond fuel consumption reductions by incorporating reductions in all GHG emissions associated with vehicle use.

Key 2005-2006 Achievements

• Established the Joint GHG Memorandum of Understanding (MOU) Committee, a committee responsible for tracking automotive industry progress towards the 5.3-Mt reduction target by 2010:
  • Terms of Reference and Operational Plan finalized
  • Committee's first progress update produced
  • Committee's communications strategy developed
  • Stakeholder engagement options put forward by government members of the Committee
• Developed an accounting tool for use by Joint GHG MOU Committee to track industry's progress towards the 5.3-Mt reduction target:
  • Identified data needed to track progress and assessed submission and reporting requirements
  • Completed accounting framework and review of data sources to populate the accounting tool

Company Average Fuel Consumption (CAFC) vs. Canadian Voluntary Standards, 1990 to 2005.

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

Vehicles: EnerGuide for Vehicles

Objective: To improve motor vehicle fuel efficiency by encouraging private motorists to purchase energy-efficient vehicles.

EnerGuide for Vehicles promotes the purchase of fuel-efficient vehicles in order to reduce vehicle emissions and mitigate other vehicle-related environmental impacts. It offers a series of tools to help Canadian motorists consider fuel efficiency in their vehicle purchase decisions and encourages buyers to choose the most fuel-efficient vehicle that meets their everyday needs.

Each year, the free Fuel Consumption Guide provides fuel consumption ratings and the estimated annual fuel cost, fuel consumption and carbon dioxide (CO₂) emissions for new passenger cars, light-duty pickup trucks, vans and special purpose vehicles sold in Canada. The EnerGuide label, which is affixed to the side window of new light-duty vehicles sold in Canada, provides specific fuel consumption information for each model. Every year, the EnerGuide for Vehicles Awards recognize the most fuel-efficient vehicles in nine categories. Awards are presented to the manufacturers.

A buyer's guide for fuel-efficient vehicles is being prepared. This new tool will educate automobile consumers about the impact of vehicles on the environment and help them select the most fuel-efficient vehicle that meets their everyday needs.

Key 2005–2006 Achievements

• NRCan completed a marketing study to determine the most effective strategy for raising Canadians' awareness. Elements of the strategy are already in the implementation phase and include partnerships with dealership associations and participation at auto shows:
  • In collaboration with the Canadian Automobile Dealership Association, partnerships and pilot projects were developed with the Montreal Association of New Car Dealers and the Manitoba Motor Dealers Association to promote fuel-efficient vehicles.
  • EnerGuide for Vehicles exhibited at the Toronto, Montréal and Vancouver major auto shows, as well as the Lanark Auto Show, the Barrie Auto Show, the AJAC Test-Fest, the Conference of the Parties to the Convention (COP-11), the Calgary Auto Show, and the Québec City auto show.
  • Over 325 000 copies of the Fuel Consumption Guide were distributed, including 186 000 to 3386 new car dealerships and 53 000 to 1412 Canadian Automobile Association offices.
  • NRCan presented a New Vehicle Recognition System to Government Industry Motor Vehicle Efficiency Committee. Its purpose is to provide a visible signal directing consumers and fleets to the purchase of fuel-efficient and low-CO₂-emitting vehicles.

Vehicle Fuel Efficiency - EnerGuide Labelling.

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

Vehicles: Personal Vehicles

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

The Personal Vehicles information initiative promotes improvements in vehicle fuel efficiency, reductions in vehicle emissions, and the mitigation of other vehicle-related environmental impacts. The initiative helps motorists understand how driving and maintenance behaviours affect GHG emissions and the environment. It encourages Canadians to adopt energy-conserving driving techniques and maintenance practices. The initiative complements EnerGuide for Vehicles.

Key components include the Auto$mart "A New Point of View" Driver Educator kit, which provides instructors with the instruments (instructor's in-class materials, student workbook, instructor's in-car guide, video, CD-ROM, and student tips cards) to teach fuel-efficient driving to drivers; the Idle-Free Campaign, which seeks to curb vehicle idling; and the Be Tire Smart Campaign, developed in collaboration with the Rubber Association of Canada, which encourages Canadians to adopt good tire maintenance and inflation practices. Recently, the initiative has been working with Transport Canada as well as the private and public sectors to explore the potential for initiatives to encourage Canadian motorists to adopt good speed management, driving and maintenance practices.

Key 2005-2006 Achievements

• Provided Auto$mart Train-the-Trainer workshops to 835 driving instructors of the 2172 driver educators who received the Auto$mart "A New Point of View" driver education resource kit. Since its launch in 2005, driving instructors have trained 130 320 new drivers on safe, fuel-efficient vehicle operating practices. Negotiated with provinces and territories to encourage the adoption of fuel conservation and efficiency components into their driver education and licensing infrastructure. Since 2002, a total of 23 fuel efficiency components have been implemented in various jurisdictions across Canada.
• Completed an Idle-Free campaign with the Halifax Regional Municipality and initiated an Idle-Free campaign with the City of Vancouver. Completed the development of regulatory and voluntary approaches to addressing idling with the Clean Air Partnership. Since its launch in 2001, the Idle-Free initiative has cooperated with nine municipalities, six community groups, and other organizations to deliver idle-free campaigns to over 9.8 million Canadians.
• Extended the Be Tire Smart campaign, in association with the Rubber Association of Canada, Nova Scotia and Alberta. The over 100 articles on the campaigns have had a circulation of 7.2 million and reached 16.3 million Canadians.

Vehicle Fuel Efficiency Awareness - Program Activities.

For more information:
vehicles.gc.ca

Vehicles: Fleet Vehicles

Objective: To improve the fuel efficiency and reduce the GHG emissions in commercial and institutional road transportation fleet operations and all other non-Government of Canada vehicle fleets through energy efficiency practices and the use of alternative fuels.

Fleet Vehicles provides information materials, workshops, technical demonstrations, driver and manager training programs and special projects, such as the truck stop Idle-Free – Quiet Zone Campaign, to help fleet operators assess and pursue opportunities to increase energy efficiency in their operations. To increase market penetration of fuel-efficient and emission-reduction technologies, the Fleet Vehicles initiative also provides financial incentives to commercial fleets purchasing pre-selected anti-idling technologies (see Figure 6-10). NRCan delivers the Fleet Vehicles initiative in partnership with fleets, industry stakeholders and other levels of government.

Key 2005-2006 Achievements

• To date, the Fleet Vehicles initiative has registered over 4733 members (see Figure 6-11). The annual truck stop Idle-Free – Quiet Zone Campaign was successfully conducted at more than 80 sites across Canada.
• A fourth driver training curriculum, "SmartDriver for Motor Coach," has been added to the SmartDriver family of tools. The Fleet Vehicles initiative has also introduced a new SmartDriver Self-Study Module.
• The Fleet Vehicles initiative and the U.S. Environmental Protection Agency signed a Memorandum of Understanding under which the freight industry in both countries would be encouraged/assisted to undertake voluntary actions to reduce fuel consumption and protect the environment with verifiable emissions reductions and, at the same time, cooperation and expansion of current activities would be promoted.

Participation in the Fleet Vehicles Initative, 1998 to 2005.

Drivers Trained, 1998 to 2004.

For more information:
fleetsmart.nrcan.gc.ca

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

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

CLiMRI is a research network comprising 29 companies, eight universities and seven government departments and funding agencies. CLiMRI's goal is to develop and implement lightweight and high-strength materials with transportation applications for the purpose of reducing GHG emissions through vehicle weight reduction and improving vehicle efficiency, and enhancing the competitiveness of Canadian primary metals producers, automotive part manufacturers and suppliers.

Key 2005-2006 Achievements

• Magnesium sheet alloys are increasingly being considered for automotive applications because of the potential for weight reduction, fuel economy improvement and emission reduction. To facilitate the use of magnesium sheet alloy for automotive applications, it is necessary to characterize formability as a function of temperature and deformation rate for the different alloys and thermo-mechanical processing routes of interest. CANMET Material Technologies Laboratory (MTL) has developed a method to evaluate the warm sheet formability of standard magnesium alloys such as Mg AZ31 as well as new alloys as they are developed at CANMET-MTL and elsewhere. Finding and developing technologies for the protection of galvanic corrosion of magnesium alloys is also important. CANMET-MTL, in partnership with its stakeholders, has developed technologies to mitigate the surface corrosion of magnesium alloys.
• There is interest in using titanium for automotive applications due to its high strength, low density and excellent resistance to corrosion and oxidation. CANMET-MTL developed a metal powder injection moulding process to produce titanium alloys. The weight saving through direct replacement in existing automotive component designs or preferably in new designs using titanium would be about 50 percent.
• A feasibility study on adopting lightweight thermal structural panels for long-haul refrigeration trailers was completed. The results indicated that using the new panels could generate a 10 percent improvement in thermal efficiency and GHG emission reductions and that replacing the current floor panels with lightweight thermal panels could result in the greatest weight reduction.

For more information:
climri.nrcan.gc.ca/default_e.htm  [This link opens a new window]

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

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

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

Key 2005-2006 Achievements

• A major study on hydrogen production and delivery requirements for underground mining established the best methods for fuel cell mine vehicles and for underground Canadian mining operations.
• The development project on the fuel cell underground mine loader is now at the power-plant-testing stage; the vehicle integration stage and initial surface performance tests will follow.
• An agreement in principle was reached with Canada Economic Development and the Canadian Transportation Fuel Cell Alliance (NRCan) for initial funding to establish a hydrogen storage and delivery infrastructure and full-scale operational research at CANMET Mining and Mineral Sciences Laboratories' underground experimental mine in Val d'Or, Quebec. Also, significant project planning has been carried out with Canada Economic Development, Industry Canada and the hydrogen and mining industries to establish the ground-breaking mining Hydrogen Production and Delivery Research Consortium. It will carry out large-scale projects on hydrogen storage and utilization and the development of standards to facilitate full technology introduction, and support commercialization of Canadian technology into the Canadian and international mining industry.

For more information:
nrcan.gc.ca/mms/canmet-mtb/mmsl-lmsm/mines/mines-e.htm [This link opens a new window]

Alternative Transportation Fuels: Ethanol Expansion Program

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

The Ethanol Expansion Program, co-managed with Agriculture and Agri-Food Canada, is contributing to the construction costs of new fuel ethanol production facilities across Canada. Projects were selected through two rounds of competitive solicitation in 2004 and 2005 based on their ability to maximize ethanol production and reduce transportation GHG emissions. On average, program contributions account for less than 15 percent of the total plant construction costs, and contribution agreements contain repayment terms based on project profitability.

Key 2005-2006 Achievements

• As of June 2006, five new ethanol plants across the country had commenced construction, with four of these expected to be completed in 2006.
• These projects, for which private-sector investments total over half a billion dollars, plan a total capacity of over 600 million litres of ethanol per year, which will more than quadruple domestic production.
• When blended in gasoline, this additional ethanol will reduce life-cycle GHG emissions by an estimated 0.8 Mt per year.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Future Fuels Initiative

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

The Future Fuels Initiative, co-managed with Agriculture and Agri-Food Canada, targets motorists, provinces and territories, and industry stakeholders. The main activities are federal-provincial policy coordination, industry consultation, public awareness campaigns and analytical work on feedstocks, production costs, emissions and socio-economic impacts.

Key 2005-2006 Achievements

• Through the Council of Energy Ministers' Working Group on Renewable Fuels, joint federal-provincialterritorial analysis and consultations were conducted in support of the development of a national strategy for renewable fuels.
• Extensive consultations on renewable fuels policy and programs were conducted with industry stakeholders including agricultural producers, renewable fuel producers, fuel distributors and end-users, as well as environmental non-governmental organizations.
• Capabilities for life-cycle modelling of the energy and emission implications of traditional and alternative fuels were enhanced and extended.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Biodiesel Initiative

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

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

Key 2005-2006 Achievements

• Initiated a Canadian Biodiesel Distribution Infrastructure Roadmap to address the potential roadblocks and propose solutions and options to ensure the successful, sustainable growth of the Canadian biodiesel industry.
• Launched the Biofuels Quality Registry and the Proficiency Testing Program with the Alberta Research Council (www.biofuels.arc.ab.ca [This link opens a new window]) to conduct fuel-quality testing of biodiesel samples, track fuel quality metrics to provide input for the development of an industry protocol and standard for fuel analysis, and evaluate the performance of laboratories on physical testing of biodiesel.
• Completed research to evaluate the technical and economic potential of possible feedstock sources, including extraction of corn oil during the fuel ethanol corn dry-milling process and conversion of the oil into biodiesel and/or other value-added products.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Canadian Transportation Fuel Cell Alliance

Objective: To demonstrate and evaluate various processes for producing hydrogen and delivering it to fuel cell vehicles at fuelling stations, to develop and demonstrate hydrogen-fuelled vehicles, and to participate in the development of codes and standards.

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

Key 2005-2006 Achievements

• Completed the construction of three of the seven "Hydrogen Highway" fuelling stations in British Columbia and started construction of a fourth station. The five Ford Focus fuel cell cars successfully completed the first of three years of on-road testing and evaluation in the Vancouver and Victoria areas.
• Purolator Courier Ltd. took delivery of a hydrogen fuel-cell-powered delivery van in May 2005 and initiated a series of on-road performance tests that will be continued in the spring of 2006 in downtown Toronto. As well, a hydrogen fuelling station to serve the vehicle was installed at the Purolator depot in West Toronto.
• Prepared the new Canadian Hydrogen Installation Code, which will govern the installation of hydrogen-generating equipment, hydrogen-using equipment such as fuel cells, hydrogen-dispensing equipment, hydrogen storage containers, hydrogen-piping systems and related accessories.

For more information:
nrcan.gc.ca/es/etb/ctfca/index_e.html [This link opens a new window]

Transportation Technologies: Hydrogen, Fuel Cells and Transportation Energy Program

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

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

Highlights of the program's work include the following:

• Supporting Canadian industry in developing a world-class water electrolysis technology for the production of hydrogen from clean renewable energy sources.
• Working in partnership with Canada's fuel cell industry over the last 20 years and establishing Canada as a world leader in fuel cell and refuelling technologies. For example, the world's first hydrogen fuel cell bus was demonstrated in Canada.
• Supporting student vehicle challenges since the 1980s and bringing university and college students from across North America together with automotive manufacturers to modify existing vehicles to run on a variety of alternative fuels.
• Supporting the development of alternative transportation fuel technologies, for instance, for natural gas and propane vehicles, which has led to a new Canadian industry that is now exporting commercial products.

Key 2005-2006 Achievements

• Development of microstructured fuel cell with over 2500 hours operating time at 1 watt.
• Introduction of Canadian natural gas vehicle technology into India. The technology was developed under this program.
• Support for Challenge X competition, in conjunction with the U.S. Department of Energy and General Motors, to assist students in designing and implementing hybrid electric vehicle technologies. The University of Waterloo placed first in the June 2005 competition with its fuel cell vehicle design.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/hyfate_e.htm [This link opens a new window]