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Biomass by Canada for Canada: realizing Canada's potential in the biomass derivatives industry.


by Fung, David T.
Canadian Chemical News • Sept, 2007 •

With 0.5 percent of the world's population, 7 percent of its land, and 10 percent of its forests, Canada has an inherent advantage to becoming the global leader in the biomass derivatives industry.

Canada can dedicate 10 to 15 million hectares of agricultural land to produce 60 million metric tons of "energy" grass per year without infringing on productive land for existing cash crops. This sustainable annual harvest would have a greenhouse gas-neutral energy content equivalent to 0.5 million barrels per day of crude oil production, which represents a perpetual production level of two Hibernia oilfields. Successful deployment of modular power cogeneration systems is essential for the economical exploitation of this biomass energy resource. Associated chemical engineering development goals include the development of cost-effective fuel preparations, substantially emission-free combustion processes, recycling of the ash as fertilizers for the energy crops, and global logistics for all the components in this energy cycle.

The list of important industrial chemical feedstock and consumer products that can be manufactured from biomass has been extensive. Substantial amounts of R&D on the subject have been reported. J. E. Cunningham's review (ACCN June 2005, pp. 24-26) provided a comprehensive assessment of the status of pre-commercial development of the biomass derivatives industry in Canada. Numerous government programs are available to support the growth of this industry. However, the actual amount of successful commercialization of biomass-derived materials in Canada has been relatively limited. It is most disheartening after 20 years of governmental support during the R&D phase, the location being considered for Iogen's first commercial plant is outside Canada.

The Canadian government's direct support for R&D has been extensive. The SR&ED program is considered to be one of the most generous taxation regimes in the world. The Canada Foundation for Innovation will have invested $4 billion from 1997 to 2007 to improve the infrastructure in Canadian R&D institutions. Canada appears to be attracting world leaders to its institutions in various R&D fields. A reverse brain drain may be taking shape. Regrettably, Canada's R&D performance in the private sector continues to lag behind most OECD countries. Canada's successful commercialization of innovative technologies is also disappointing. Many of these emerging technology companies have been quickly bought out by larger global venture companies. A sustainable biotechnology and biomass derivatives industry in Canada has yet to be established.

Is Canada missing critical elements required to achieve a higher level of performance in this emergent industry sector? The time has come for Canada to establish a competitive technology commercialization regime that would substantially improve Canada's private sector R&D performance and make Canada a country of choice for the commercialization of technologies originating from anywhere in the world. A patchwork of more Band-aid[R] solutions will not be satisfactory. Canada must urgently adopt a comprehensive policy and regulatory changes that would turn national R&D accomplishments in biomass derivatives into a sustainable wealth generator for Canada.

David T. Fung, MCIC is the chair and CEO of the ACDEG Group of companies and president of the CSChE.


COPYRIGHT 2007 Chemical Institute of Canada Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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