Wineries turning pomace into power

By Globe and Mail


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Like others in the wine industry, Vincor Canada used to send most of its leftover grape skin, pulp and seed to landfills - costly for the environment and the company's bottom line.

But in September, Canada's largest producer and marketer of wine and related products announced a deal with Vandermeer Greenhouses of Niagara-on-the-Lake, Ont., to create electricity using those wine leftovers, known as pomace.

Bruce Walker, executive vice-president of Vincor, says the project is the "most visible" example of the company's interest in sustainable wine-making - a trend emerging throughout Canada's wine industry. "The urgency is yesterday and that is how we are approaching this," he says.

This fall, Vincor shipped about 3,500 tonnes of pomace (most of the processing leftovers from three of its Niagara-area wineries) to Vandermeer's new $3-million anaerobic digester, which breaks down organic matter and captures methane gas for use as electricity in the greenhouse operations. Any surplus is sold to Ontario Hydro's grid to heat and light homes in the Niagara area.

Randy Van Berkel, general manager of Vandermeer, says close proximity to a big supplier of organic material helped the company invest in the digester, with financial assistance from the Ontario government, "at a drastically reduced cost."

Mr. Walker estimates Vincor saved $50,000 by not trucking the pomace to landfills. Vincor now is looking for a partner to invest in an anaerobic digester in British Columbia to process pomace from its Okanagan Valley wineries. Green initiatives also cut costs, he says, citing a retrofit of one Okanagan winery to recycle water at a savings of $75,000.

Mr. Walker, also chairman of the Wine Council of Ontario's sustainable wine-making committee, says the industry's move to more eco-friendly practices creates a "triple bottom-line" impact: a demonstration of social responsibility, cost savings and reduced carbon footprint. This year, 24 wineries (40 per cent of the Ontario industry) signed on to the Wine Council's voluntary guidelines on sustainability, up from 17 a year earlier. The future of green, he says, "is very bright."

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What to know about the big climate change meeting in Katowice, Poland

COP24 Climate Talks in Poland gather nearly 200 nations to finalize the Paris Agreement rulebook, advance the Talanoa Dialogue, strengthen emissions reporting and transparency, and align finance, technology transfer, and IPCC science for urgent mitigation.

 

Key Points

UNFCCC summit in Katowice to finalize Paris rules, enhance transparency, and drive stronger emissions cuts.

✅ Paris rulebook on reporting, transparency, markets, and timelines

✅ Talanoa Dialogue to assess gaps and raise ambition by 2020

✅ Finance and tech transfer for developing countries under UNFCCC

 

Delegates from nearly 200 countries have assembled this month in Katowice, Poland — the heart of coal country — to try to move the ball forward on battling climate change.

It’s now the 24th annual meeting, or “COP” — conference of the parties — under the landmark U.N. Framework Convention on Climate Change, which the United States signed under then-President George H.W. Bush in 1992. More significantly, it’s the third such meeting since nations adopted the Paris climate agreement in 2015, widely seen at the time as a landmark moment in which, at last, developed and developing countries would share a path toward cutting greenhouse gas emissions, as Obama's clean energy push sought to lock in momentum.

But the surge of optimism that came with Paris has faded lately. The United States, the second largest greenhouse gas emitter, said it would withdraw from the agreement, though it has not formally done so yet. Many other countries are off target when it comes to meeting their initial round of Paris promises — promises that are widely acknowledged to be too weak to begin with. And emissions have begun to rise after a brief hiatus that had lent some hope of progress.

The latest science, meanwhile, is pointing toward increasingly dire outcomes. The amount of global warming that the world already has seen — 1 degree Celsius, 1.8 degrees Fahrenheit — has upended the Arctic, is killing coral reefs and may have begun to destabilize a massive part of Antarctica. A new report from the U.N.'s Intergovernmental Panel on Climate Change (IPCC), requested by the countries that assembled in Paris to be timed for this year’s meeting, finds a variety of increasingly severe effects as soon as a rise of 1.5 degrees Celsius arrives — an outcome that can’t be avoided without emissions cuts so steep that they would require societal transformations without any known historical parallel, the panel found.

It’s in this context that countries are meeting in Poland, with expectations and stakes high.

So what’s on the agenda in Poland?

The answer starts with the Paris agreement, which was negotiated three years ago, has been signed by 197 countries and is a mere 27 pages long. It covers a lot, laying out a huge new regime not only for the world as a whole to cut its greenhouse gas emissions, but for each individual country to regularly make new emissions-cutting pledges, strengthen them over time, report emissions to the rest of the world and much more. It also addresses financial obligations that developed countries have to developing countries, including how to achieve clean and universal electricity at scale, and how technologies will be transferred to help that.

But those 27 pages leave open to interpretation many fine points for how it will all work. So in Poland, countries are performing a detailed annotation of the Paris agreement, drafting a “rule book” that will span hundreds of pages.

That may sound bureaucratic, but it’s key to addressing many of the flash points. For instance, it will be hard for countries to trust that their fellow nations are cutting emissions without clear standards for reporting and vetting. Not everybody is ready to accept a process like the one followed in the United States, which not only publishes its emissions totals but also has an independent review of the findings.

“A number of the developing countries are resisting that kind of model for themselves. They see it as an intrusion on their sovereignty,” said Alden Meyer, director of strategy and policy at the Union of Concerned Scientists and one of the many participants in Poland this week. “That’s going to be a pretty tough issue at the end of the day.”

It’s hardly the only one. Also unclear is what countries will do after the time frames on their current emissions-cutting promises are up, which for many is 2025 or 2030. Will all countries then start reporting newer and more ambitious promises every five years? Every 10 years?

That really matters when five years of greenhouse gas emissions — currently about 40 billion tons of carbon dioxide annually — are capable of directly affecting the planet’s temperature.

What can we expect each day?

The conference is in its second week, when higher-level players — basically, the equivalent of cabinet-level leaders in the United States — are in Katowice to advance the negotiations.

As this happens, several big events are on the agenda. On Tuesday and Wednesday is the “Talanoa Dialogue,” which will bring together world leaders in a series of group meetings to discuss these key questions: “Where are we? Where do we want to go? How do we get there?”

Friday is the last day of the conference, but pros know these events tend to run long. On Friday — or after — we will be waiting for an overall statement or decision from the meeting which may signal how much has been achieved.

What is the “Talanoa Dialogue”?

“Talanoa” is a word used in Fiji and in many other Pacific islands to refer to “the sharing of ideas, skills and experience through storytelling.” This is the process that organizers settled on to fulfill a plan formed in Paris in 2015.

That year, along with signing the Paris agreement, nations released a decision that in 2018 there should be a “facilitative dialogue" among the countries “to take stock” of where their efforts stood to reduce greenhouse gas emissions. This was important because going into that Paris meeting, it was already clear that countries' promises were not strong enough to hold global warming below a rise of 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial temperatures.

This dialogue, in the Talanoa process, was meant to prompt reflection and maybe even soul searching about what more would have to be done. Throughout the year, “inputs” to the Talanoa dialogue — most prominently, the recent report by the United Nations' Intergovernmental Panel on Climate Change on the meaning and consequences of 1.5 degrees Celsius of warming —have been compiled and synthesized. Now, over two days in Poland, countries' ministers will assemble to share stories in small groups about what is working and what is not and to assess where the world as a whole is on achieving the required greenhouse gas emissions reductions.

What remains to be seen is whether this process will culminate in any kind of product or statement that calls clearly for immediate, strong ramping up of climate change promises across the world.

With the clock ticking, will countries do anything to increase their ambition at this meeting?

If negotiating the Paris rule book sounds disappointingly technical, well, you’re not the only one feeling that way. Pressure is mounting for countries to accomplish something more than that in Poland — to at minimum give a strong signal that they understand that the science is looking worse and worse, and the world’s progress on the global energy transition isn’t matching that outlook.

“The bigger issue is how we’re going to get to an outcome on greater ambition,” said Lou Leonard, senior vice president for climate and energy at the World Wildlife Fund, who is in Poland observing the talks. “And I think the first week was not kind on moving that part of the agenda forward.”

Most countries are not likely to make new emissions-cutting promises this week. But there are two ways that the meeting could give a strong statement that countries should — or will — come up with new promises at least by 2020. That’s when extremely dramatic emissions cuts would have to start, including progress toward net-zero electricity by mid-century, according to the recent report on 1.5 degrees Celsius of warming.

The first is the aforementioned “Talanoa dialogue” (see above). It’s possible that the outcome of the dialogue could be a statement acknowledging that the world isn’t nearly far enough along and calling for much stronger steps.

There will also be a decision text released for the meeting as a whole, which could potentially send a signal. Leonard said he hopes that would include details for the next steps that will put the world on a better course.

“We have to create milestones, and the politics around it that will pressure countries to do something that quite frankly they don’t want to do,” he said. “It’s not going to be easy. That’s why we need a process that will help make it happen. And make the most of the IPCC report that was designed to come out right now so it could do this for us. That’s why we have it, and it needs to serve that role.”

The United States says it will withdraw from the agreement, so what role is it playing in Poland?

Despite President Trump’s pledge to withdraw, the United States remains in the Paris agreement (for now) and has sent a delegation of 44 people to Poland, largely from the State Department but also from the Environmental Protection Agency, Energy Department and even the White House, while domestically a historic U.S. climate law has recently passed to accelerate clean energy. Many of these career government officials remain deeply engaged in hashing out details of the agreement.

Still, the country as a whole is being cast in an antagonistic role in the talks.

 

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Ontario will refurbish Pickering B NGS

Pickering nuclear refurbishment will modernize Ontario's Candu reactors at Pickering B, sustaining 2,000 MW of clean electricity, aiding net-zero goals, and aligning with Ontario Power Generation plans and Canadian Nuclear Safety Commission reviews.

 

Key Points

An 11-year overhaul of Pickering B Candu reactors to extend life, keep 2,000 MW online, and back Ontario net-zero grid.

✅ 11-year project; 11,000 annual jobs; $19.4B GDP impact.

✅ Refurbishes four Pickering B Candu units; maintains 2,000 MW.

✅ Requires Canadian Nuclear Safety Commission license approvals.

 

The Ontario government has announced its intention to pursue a Pickering refurbishment at the venerable nuclear power station, which has been operational for over fifty years. This move could extend the facility's life by another 30 years.

This decision is timely, as Ontario anticipates a significant surge in electricity demand and a growing electricity supply gap in the forthcoming years. Additionally, all provinces are grappling with new federal mandates for clean electricity, necessitating future power plants to achieve net-zero carbon emissions.

Todd Smith, the Energy Minister, is expected to endorse Ontario Power Generation's proposal for the plant's overhaul, as per a preliminary version of a government press release.

The renovation will focus on four Candu reactors, known collectively as Pickering B, which were originally commissioned in the early 1980s. This upgrade is projected to continue delivering 2,000 megawatts of power, equivalent to the current output of these units.

According to the press release, the project will span 11 years, create approximately 11,000 annual jobs, and contribute $19.4 billion to Ontario's GDP. However, the total budget for the project remains unspecified.

The project follows the ongoing refurbishment of four units at the nearby Darlington nuclear station, which is more than halfway completed with a budget of $12.8 billion.

The proposal awaits the Canadian Nuclear Safety Commission's approval, and officials face extension request timing considerations before key deadlines.

The Commission is also reviewing a prior request from OPG to extend the operational license of the existing Pickering B units until 2026. This extension would allow the plant to safely continue operating until the commencement of its renovation, pending approval.

 

Ontario's Ambitious Nuclear Strategy

The announcement regarding Pickering is part of Ontario's broader clean energy plan for an unprecedented expansion of nuclear power in Canada.

Last summer, the province announced its intention to nearly double the output at Bruce Power, currently the world's largest nuclear generating station.

Additionally, Ontario revealed SMR plans to construct three more alongside the existing project at Darlington. These reactors are expected to supply enough electricity to power around 1.2 million homes.

Discussions about revitalizing the Pickering facility began in 2022, after the station had been slated to close as planned amid debate, with Ontario Power Generation submitting a feasibility report to the government last summer.

The Ford government emphasized the necessity of this nuclear expansion to meet the increasing electricity demands anticipated from the auto sector's shift to electric vehicles, the steel industry's move away from coal-fired furnaces, and the growing population in Ontario.

Ontario's capability to attract major international car manufacturers like Volkswagen and Stellantis to produce electric vehicles and batteries is partly attributed to the fact that 90% of the province's electricity comes from non-fossil fuel sources.

 

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Hydro One stock has too much political risk to recommend, Industrial Alliance says

Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.

 

Key Points

A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.

✅ Hold rating, $24 price target, 28.1% implied return

✅ EPS forecast: $1.27 in 2018; $1.38 in 2019

✅ Defensive utility: stable cash flow, 4-6% rate base growth

 

A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.

On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.

The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.

But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.

 

Hydro One stock defensive but risky

“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”

In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.

Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.

 

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U.S. power demand seen sliding 1% in 2023 on milder weather

EIA U.S. Power Outlook 2023-2024 forecasts lower electricity demand, softer wholesale prices, and faster renewable growth from solar and wind, with steady natural gas, reduced coal generation, slight nuclear gains, and ERCOT market moderation.

 

Key Points

An EIA forecast of a 2023 demand dip, 2024 rebound, lower prices, and a higher renewable share in the U.S. power mix.

✅ Demand dips to 4,000 billion kWh in 2023; rebounds in 2024.

✅ ERCOT on-peak prices average about $35/MWh versus $80/MWh in 2022.

✅ Renewables grow to 24% share; coal falls to 17%; nuclear edges up.

 

U.S. power consumption is expected to slip about 1% in 2023 from the previous year as milder weather slows usage from the record high hit in 2022, consistent with recent U.S. consumption trends observed over the past several years, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO).

EIA projected that electricity demand is on track to slide to 4,000 billion kilowatt-hours (kWh) in 2023 from a historic high of 4,048 billion kilowatt-hours (kWh) in 2022, reflecting patterns seen during COVID-19 demand shifts in prior years, before rising to 4,062 billion kWh in 2024 as economic growth ramps up.

Less demand coupled with more electricity generation from cheap renewable power sources and lower natural gas prices is forecast to slash wholesale power prices this year, the EIA said.

The on-peak wholesale price at the North hub in Texas’ ERCOT power market is expected to average about $35 per megawatt-hour (MWh) in 2023 compared with an average of nearly $80/MWh in 2022 after the 2022 price surge in power markets.

As capacity for renewables like solar and wind ramp up and as natural gas prices ease amid the broader energy crisis pressures, the EIA said it expects coal-fired power generation to be 17% less in the spring of 2023 than in the spring of 2022.

Coal will provide an average of 17% of total U.S. generation this year, down from 20% last year, as utilities shift investments toward electricity delivery and away from new power production, the EIA said.

The share of total generation supplied by natural gas is seen remaining at about the same this year at 39%. The nuclear share of generation is seen rising slightly to 20% this year from 19% in 2022. Generation from renewable energy sources grows the most in the forecast, increasing to 24% this year from a share of 22% last year, even as residential electricity bills rose in 2022 across the U.S.

 

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Toronto Cleans Up After Severe Flooding

Toronto Flood Cleanup details the citywide response to storm damage after heavy rain, stressing drainage system upgrades, emergency services, transit disruptions, infrastructure repair, financial aid, insurance claims, and climate resilience planning for future weather.

 

Key Points

Toronto Flood Cleanup is the city's flood response, restoring infrastructure, aiding residents, and upgrading drainage.

✅ Emergency services and public works lead debris removal.

✅ Repairs to roads, bridges, transit, and utilities underway.

✅ Aid, insurance claims, and drainage upgrades prioritized.

 

Toronto is grappling with significant cleanup efforts following severe storms that unleashed heavy rains and caused widespread flooding across the city. The storms, which hit the area over the past week, have left a trail of damage and disruption, prompting both immediate response measures and longer-term recovery plans.

The intense rainfall began with a powerful storm system that moved through southern Ontario, with Sudbury Hydro crews working to reconnect service as the system pressed toward the GTA, delivering an unprecedented volume of water in a short period. The resulting downpours overwhelmed the city's drainage systems, leading to severe flooding in multiple neighborhoods. Streets, basements, and parks were inundated, with many areas experiencing water levels not seen in recent memory.

Emergency services were quickly mobilized to address the immediate impact of the floods. Toronto’s Fire Services, along with other first responders and skilled utility teams, as Ontario recently sent 200 workers to Florida to help restore power, were deployed to assist residents affected by the rising waters. Rescue operations were carried out to help people trapped in their homes or vehicles, and temporary shelters were set up for those displaced by the flooding.

The storm's impact was felt across various sectors of the city. Public transportation services were disrupted, as strong gusts led to significant power outages in parts of the region, with numerous subway stations and bus routes affected by the high water levels. Major roads were closed due to flooding, causing significant traffic delays and affecting daily commutes for many residents. Local businesses also faced challenges, with some forced to close their doors as a result of the water damage.

The city's infrastructure bore the brunt of the storm's fury. Several key infrastructure components, including roads, bridges, and utilities, suffered damage. The city's water treatment plants and sewage systems were stressed by the volume of water, raising concerns about potential contamination and the need for extensive maintenance and repair work.

In the wake of the flooding, the Toronto Municipal Government has launched a comprehensive cleanup and recovery effort. The city's Public Works Department is spearheading the operation, focusing on clearing debris, repairing damaged infrastructure, and restoring essential services, as Hydro One crews restore power to hundreds of thousands across Ontario. Teams of workers are diligently addressing the damage to roads and bridges, ensuring that they are safe for use and functioning properly.

Efforts are also underway to assist residents and businesses affected by the flooding. Financial aid and support programs are being implemented to help those who have suffered property damage or loss, including customers affected by Toronto power outages as repairs continue. The city is working closely with insurance companies to facilitate claims and provide relief to those in need.

In addition to the immediate cleanup, there is a heightened focus on evaluating and improving the city's flood management systems. The recent storms have highlighted vulnerabilities in Toronto’s infrastructure, prompting calls for enhanced flood prevention measures. City officials and urban planners are assessing the current drainage systems and exploring ways to bolster their capacity to handle future extreme weather events.

The storms have also sparked discussions about the broader implications of climate change and its impact on urban areas. Experts suggest that increasingly severe weather events, including heavy rainfall and flooding, may become more common, as seen with Houston's extended power outage after severe storms, as global temperatures rise. This has led to a call for more resilient and adaptable infrastructure to better withstand such events.

Community organizations and volunteers have played a vital role in the recovery process. Local groups have come together to support their neighbors, providing assistance with cleanup efforts, distributing supplies, and offering emotional support to those affected by the disaster. Their contributions underscore the importance of community solidarity in times of crisis.

As Toronto works towards recovery, there is a clear recognition of the need for a comprehensive strategy to address both the immediate and long-term challenges posed by severe weather events. The city’s response will involve not only repairing the damage caused by this storm but also investing in infrastructure improvements, drawing lessons from London power outage disruption cases to harden critical systems, and adopting measures to mitigate the impact of future floods.

In summary, the severe storms that recently struck Toronto have led to widespread flooding and significant disruption across the city. The immediate response has involved extensive cleanup efforts, damage assessment, and support for affected residents and businesses. Looking ahead, Toronto faces the challenge of enhancing its flood management systems and preparing for the potential impacts of climate change. The collective efforts of emergency services, city officials, and community members will be crucial in ensuring a swift recovery and building resilience against future storms.

 

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Feds to study using electricity to 'reduce or eliminate' fossil fuels

Electrification Potential Study for Canada evaluates NRCan's decarbonization roadmap, assessing electrification of end uses and replacements for fossil fuels across transportation, buildings, and industry, including propane, diesel, natural gas, and coal, to guide energy policy.

 

Key Points

An NRCan study assessing electrification to replace fossil fuels across sectors and guide deep decarbonization R&D.

✅ Evaluates non-electric alternatives alongside electrification paths

✅ Covers propane, diesel, natural gas, and coal end uses

✅ Guides NRCan R&D priorities for deep decarbonization

 

The federal government wants to spend up to $300,000 on a study aimed at understanding whether existing electrical technologies can “reduce or eliminate” fossil fuels used for virtually every purpose other than generating electricity.

The proposal has caused consternation within the Saskatchewan government, whose premier has criticized a 2035 net-zero grid target as shifting the goalposts, and which has spent months attacking federal policies it believes will harm the Western Canadian energy sector without meaningfully addressing climate change.

Procurement documents indicate the “Electrification Potential Study for Canada” will provide “strategic guidance on the need to pursue both electric and non-electric energy research and development to enable deep decarbonisation scenarios.”

“It is critical that (Natural Resources Canada) as a whole have a cross-sectoral, consistent, and comprehensive understanding of the viability of electric technologies as a replacement for fossil fuels,” the documents state.

The study proponent will be asked to examine possible replacements for a range of fuels, including propane, transportation fuel, fuel oil, diesel, natural gas and coal, even as Alberta maps a path to clean electricity for its grid. Only international travel fuel and electricity generation are outside the scope of the study.

“To be clear, the consultant should not answer these questions directly, but should conduct the analysis with them in mind. The goal … is to collate data which can be used by (Natural Resources Canada) to conduct analysis related to these questions,” the documents state.

Natural Resources Canada issued the request for proposals one week before Prime Minister Justin Trudeau officially launched a 40-day election campaign in which climate and energy policy, including debates over Alberta's power market like a Calgary retailer's challenge, is expected to play a defining role.

It also comes as the federal government works to complete the controversial Trans Mountain Pipeline Expansion project through British Columbia, amid tariff threats boosting support for Canadian energy projects, which it bought last year for $4.5 billion and is currently bogged down in the court system.

A Natural Resources Canada spokeswoman said the ministry would not be able to respond to questions until sometime on Thursday.

While the documents make clear that the study aims to answer unresolved questions about what the International Energy Agency calls an increasingly-electric future, with clean grid and storage trends emerging, without a specific timeline, the provincial government is far from thrilled.

Energy and Resources Minister Bronwyn Eyre said the document reflects the federal government’s “hostility” to the energy sector, even as Alberta's electricity sector faces profound change, because government ministries like Natural Resources Canada don’t do anything without political direction.

Asked whether a responsible government should consider every option before taking a decision, Eyre said a government that was not interested in eliminating fossil fuels entirely would not have used such “strong” language in a public document, noting that provinces like Ontario are grappling with hydro system problems as well.

“I think it’s a real wake-up call to what (Ottawa’s) endgame really is here,” she said, adding that the document does not ask the proponent to conduct an economic impact analysis or consider potential job losses in the energy sector.

The study is organized by Natural Resources Canada’s office of energy research and development, which is tasked with accelerating energy technology “in order to produce and use energy in … more clean and efficient ways,” the documents state.

Bidding on the proposal closes Oct. 14, one week before the federal election. The successful proponent must deliver a final report in April 2020, according to the documents.

 

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