Canadian Energy Centre
Canadian renewable propane could be a fuel of the future
From the Canadian Energy Centre
‘We want to make sure we reduce emissions while keeping in mind affordability and reliability’
Four years ago, Craig Timmermans’ two Ontario radio stations became Canada’s first to go on the air from off the grid.
Faced with an $80,000 connection fee and ongoing electricity delivery costs, Timmermans opted for another solution: solar and propane.
“I did our power calculation: five staff, hot water tank, heating system, etc., right down to a coffee maker…then we need a heating source, so it made sense to go with propane,” he said.
“When I looked at all the different heating systems, I found that propane is hands down the most efficient.”
Now Timmermans is building a new home that will run exclusively on propane. He says he wanted propane appliances due to their efficiency.
Ontario radio operators KT and Craig Timmermans power their off-grid business with propane and solar. Photo supplied to the Canadian Energy Centre
“A propane cooking stove is the best cooking appliance…The heat is continuous, it’s instant. It just works so well.”
Lower environmental footprint
Propane serves many purposes in Canada, from supporting mining and oil and gas operations to fueling heating, cooling, cooking and power in remote, off-grid communities.
In these communities, propane can replace diesel with a lower environmental footprint. Propane’s carbon intensity is estimated at 72 grams of CO2 equivalent per megajoule, compared to 100 grams for diesel.
That could be slashed by more than half with a move to renewable propane, according to the Canadian Propane Association (CPA). The CPA has commissioned a new report that looks at potential pathways to producing renewable propane in Canada.
Propane storage tank. Getty Images photo
Pairing with heat pumps and hybrid energy systems
The report serves as the foundation of the CPA’s roadmap for scaling up renewable propane production in Canada.
The CPA says the fuel is ideal for pairing with electric heat pumps to provide back-up heat in low temperatures, especially in remote regions that are not near natural gas grids.
It’s also promising for hybrid systems where solar or wind provides baseload energy and renewable propane provides support when renewables are not available.
Part of propane’s appeal – renewable or otherwise – is that it’s easily liquefied and stored in pressurized cylinders, making it a versatile energy source used almost anywhere, the CPA says.
“We want to make sure we reduce emissions while keeping in mind affordability and reliability as key pillars in any energy transformation,” said CEO Shannon Watt.
“Propane goes where other fuels can’t go.”
Producing renewable propane
Today, most propane produced in Canada comes as a byproduct from natural gas processing.
Among other sources, renewable propane can be co-produced with renewable diesel and sustainable aviation fuel, made primarily from plant and vegetable oils, animal fats or used cooking oil.
Cost is the barrier to renewable propane production – about double what it takes to produce conventional propane, the CPA says.
The United States is offering incentives for renewable propane that are not available in Canada.
Through the Inflation Reduction Act, Renewable Fuel Standard and Low Carbon Fuel Standard, renewable propane producers can receive C$20 per gigajoule (or more than C$30 per GJ in California).
Through Canada’s Clean Fuel Regulations, the incentive is just over C$5 per GJ, or about C$10 per GJ in British Columbia.
“In order to attract investment the same way as the U.S. under the Inflation Reduction Act, we need to have competing measures in place,” Watt said.
“We’ve got the technology and we’ve got the feedstocks. We’ve got a lot of those big puzzle pieces that we need. Now we need the dollars to flow.”
The Ridley Island Export Terminal in Prince Rupert, B.C. ships Canadian propane to overseas markets. Photo courtesy AltaGas
Exporting renewable propane to the world
A large-scale renewable propane industry wouldn’t just benefit Canadians, she said.
That’s because global demand for propane is growing.
Market research firm IMARC Group projects world propane use will rise to nearly 250 million tonnes by 2032, more than one-third higher than demand last year.
The transition to cleaner energy sources is a major factor propelling growth, analysts said.
Until recently, Canada’s only propane exports went to the United States. That changed with the startup of two export terminals at Prince Rupert, B.C.
Since 2017, Canada’s propane exports outside the U.S. have grown substantially, reaching 42 per cent of total propane exports in 2023, according to the Canada Energy Regulator.
“We export more and more propane to non-U.S. locations,” Watt said.
“Now, roughly 50 per cent of Canadian propane is shipped to South Korea, Japan and Mexico, displacing higher emission intensity sources, namely coal and timber.”
Exporting renewable propane would take the benefits a step further, she said.
“That carries the conversation on about reducing global emissions and not just what’s happening in our own backyard.”
Alberta
The case for expanding Canada’s energy exports
From the Canadian Energy Centre
For Canada, the path to a stronger economy — and stronger global influence — runs through energy.
That’s the view of David Detomasi, a professor at the Smith School of Business at Queen’s University.
Detomasi, author of Profits and Power: Navigating the Politics and Geopolitics of Oil, argues that there is a moral case for developing Canada’s energy, both for Canadians and the world.
CEC: What does being an energy superpower mean to you?
DD: It means Canada is strong enough to affect the system as a whole by its choices.
There is something really valuable about Canada’s — and Alberta’s — way of producing carbon energy that goes beyond just the monetary rewards.
CEC: You talk about the moral case for developing Canada’s energy. What do you mean?
DD: I think the default assumption in public rhetoric is that the environmental movement is the only voice speaking for the moral betterment of the world. That needs to be challenged.
That public rhetoric is that the act of cultivating a powerful, effective economic engine is somehow wrong or bad, and that efforts to create wealth are somehow morally tainted.
I think that’s dead wrong. Economic growth is morally good, and we should foster it.
Economic growth generates money, and you can’t do anything you want to do in social expenditures without that engine.
Economic growth is critical to doing all the other things we want to do as Canadians, like having a publicly funded health care system or providing transfer payments to less well-off provinces.
Over the last 10 years, many people in Canada came to equate moral leadership with getting off of oil and gas as quickly as possible. I think that is a mistake, and far too narrow.
Instead, I think moral leadership means you play that game, you play it well, and you do it in our interest, in the Canadian way.
We need a solid base of economic prosperity in this country first, and then we can help others.
CEC: Why is it important to expand Canada’s energy trade?
DD: Canada is, and has always been, a trading nation, because we’ve got a lot of geography and not that many people.
If we don’t trade what we have with the outside world, we aren’t going to be able to develop economically, because we don’t have the internal size and capacity.
Historically, most of that trade has been with the United States. Geography and history mean it will always be our primary trade partner.
But the United States clearly can be an unreliable partner. Free and open trade matters more to Canada than it does to the U.S. Indeed, a big chunk of the American people is skeptical of participating in a global trading system.
As the United States perhaps withdraws from the international trading and investment system, there’s room for Canada to reinforce it in places where we can use our resource advantages to build new, stronger relationships.
One of these is Europe, which still imports a lot of gas. We can also build positive relationships with the enormous emerging markets of China and India, both of whom want and will need enormous supplies of energy for many decades.
I would like to be able to offer partners the alternative option of buying Canadian energy so that they are less reliant on, say, Iranian or Russian energy.
Canada can also maybe eventually help the two billion people in the world currently without energy access.
CEC: What benefits could Canadians gain by becoming an energy superpower?
DD: The first and primary responsibility of our federal government is to look after Canada. At the end of the day, the goal is to improve Canada’s welfare and enhance its sovereignty.
More carbon energy development helps Canada. We have massive debt, an investment crisis and productivity problems that we’ve been talking about forever. Economic and job growth are weak.
Solving these will require profitable and productive industries. We don’t have so many economic strengths in this country that we can voluntarily ignore or constrain one of our biggest industries.
The economic benefits pay for things that make you stronger as a country.
They make you more resilient on the social welfare front and make increasing defence expenditures, which we sorely need, more affordable. It allows us to manage the debt that we’re running up, and supports deals for Canada’s Indigenous peoples.
CEC: Are there specific projects that you advocate for to make Canada an energy superpower?
DD: Canada’s energy needs egress, and getting it out to places other than the United States. That means more transport and port facilities to Canada’s coasts.
We also need domestic energy transport networks. People don’t know this, but a big chunk of Ontario’s oil supply runs through Michigan, posing a latent security risk to Ontario’s energy security.
We need to change the perception that pipelines are evil. There’s a spiderweb of them across the globe, and more are being built.
Building pipelines here, with Canadian technology and know-how, builds our competitiveness and enhances our sovereignty.
Economic growth enhances sovereignty and provides the resources to do other things. We should applaud and encourage it, and the carbon energy sector can lead the way.
Business
Oil tanker traffic surges but spills stay at zero after Trans Mountain Expansion
From the Canadian Energy Centre
Bigger project maintains decades-long marine safety record
The Trans Mountain system continues its decades-long record of zero marine spills, even as oil tanker traffic has surged more than 800 per cent since the pipeline’s expansion in May 2024.
The number of tankers calling at Trans Mountain’s Westridge Marine Terminal in the Port of Vancouver in one month now rivals the number that used to go through in one year.
A global trend toward safer tanker operations
Trans Mountain’s safe operations are part of a worldwide trend. Global oil tanker traffic is up, yet spills are down, according to the International Tanker Owners Pollution Federation, a London, UK-based nonprofit that provides data and response support.
Transport Canada reports a 95 per cent drop in ship-source oil spills and spill volumes since the 1970s, driven by stronger ship design, improved response and better regulations.
“Tankers are now designed much more safely. They are double-hulled and compartmentalized to mitigate spills,” said Mike Lowry, spokesperson for the Western Canada Marine Response Corporation (WCMRC).
WCMRC: Ready to protect the West Coast
One of WCMRC’s new response vessels arrives in Barkley Sound. Photo courtesy Western Canada Marine Response Corporation
From eight marine bases including Vancouver and Prince Rupert, WCMRC stands at the ready to protect all 27,000 kilometres of Canada’s western coastline.
Lowry sees the corporation as similar to firefighters — training to respond to an event they hope they never have to see.
In September, it conducted a large-scale training exercise for a worst-case spill scenario. This included the KJ Gardner — Canada’s largest spill response vessel and a part of WCMRC’s fleet since 2024.
“It’s part of the work we do to make sure everybody is trained and prepared to use our assets just in case,” Lowry said.
Expanding capacity for Trans Mountain
The K.J. Gardner is the largest-ever spill response vessel in Canada. Photo courtesy Western Canada Marine Response Corporation
WCMRC’s fleet and capabilities were doubled with a $170-million expansion to support the Trans Mountain project.
Between 2012 and 2024, the company grew from 13 people and $12 million in assets to more than 200 people and $213 million in assets.
“About 80 per cent of our employees are mariners who work as deckhands, captains and marine engineers on our vessels,” Lowry said.
“Most of the incidents we respond to are small marine diesel spills — the last one was a fuel leak from a forest logging vessel near Nanaimo — so we have deployed our fleet in other ways.”
Tanker safety starts with strong rules and local expertise
Tanker loading at the Westridge Marine Terminal in the Port of Vancouver. Photo courtesy Trans Mountain Corporation
Speaking on the ARC Energy Ideas podcast, Trans Mountain CEO Mark Maki said tanker safety starts with strong regulations, including the use of local pilots to guide vessels into the harbour.
“On the Mississippi River, you have Mississippi River pilots because they know how the river behaves. Same thing would apply here in Vancouver Harbour. Tides are strong, so people who are familiar with the harbor and have years and decades of experience are making sure the ships go in and out safely,” Maki said.
“A high standard is applied to any ship that calls, and our facility has to meet very strict requirements. And we have rejected ships, just said, ‘Nope, that one doesn’t fit the bill.’ A ship calling on our facilities is very, very carefully looked at.”
Working with communities to protect sensitive areas
Beyond escorting ships and preparing for spills, WCMRC partners with coastal communities to map sensitive areas that need rapid protection including salmon streams, clam beds and culturally important sites like burial grounds.
“We want to empower communities and nations to be more prepared and involved,” Lowry said.
“They can help us identify and protect the areas that they value or view as sensitive by working with our mapping people to identify those areas in advance. If we know where those are ahead of time, we can develop a protection strategy for them.”
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