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Energy

Canadian Gas Association Writes a Letter to Prime Minister Justin Trudeau Highlighting the Importance of Natural Gas Energy Choice for Canadians

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From EnergyNow.ca

On January 29, 2024, the Canadian Gas Association (CGA) sent a letter to Prime Minister Justin Trudeau, emphasizing the significance of the natural gas energy option for Canadians, a need underscored by the recent severe weather conditions in Western Canada.

The letter reads as follows:

Canada’s energy delivery companies had their work cut out for them over the last few weeks, ensuring the country could get through a period of extreme cold temperatures. The polar vortex that locked in across the continent only underscored how important an energy system with many options is to our overall well-being. I thought I would expand on this point in my first letter to you in 2024.

The second week of January saw temperatures in parts of the country drop well into the minus 40s, with windchill in the minus 50s. This triggered alerts from various authorities to reduce electricity use. Around 4 pm in Alberta on January 12th wind and solar generation facilities were operating at only a few percentage points of their capacity. But power was desperately needed. Luckily, a combination of in-province and neighbouring jurisdiction power sources – like natural gas-powered plants – could help meet the power needs of the province.

It is worth drawing attention to the fact that the alerts were all about a single energy system – the electricity grid. While that grid was under strain due in part to low renewable energy generation availability, the natural gas delivery system (a separate system that delivers gas energy, not electrons) was delivering approximately 9 times the energy and operating without any alerts required.

The contribution of the gas system is really worth emphasizing.

Nationally, over an average year, electricity meets just over 20% of our energy needs.  Natural gas directly delivered to customers – residential, commercial and industrial – meets almost twice that amount, or just under 40% and liquid fuels like gasoline and diesel meet the balance.  But at certain times of the year, such as during the recent January freeze, the differential between what natural gas and electricity deliver grows dramatically.  At points earlier this month Alberta had use of roughly 12,000 megawatts of electric power and over 110,000 megawatts of gas energy equivalent.

And yet it was the electric system, not the natural gas system, that was threatened.

Media coverage during and after the freeze referenced how the electric system is threatened by extreme weather and needs to be built out to meet demand. But to suggest that the electric system could ever meet the energy delivered by natural gas over the gas delivery system is simply unrealistic. Do those who advocate for the electrification of all energy, especially peak heating needs, pretend that we have either the means, the resources, or the dollars, to build out an electric system that could meet roughly nine times the load of the gas system?  Do advocates of natural gas bans appreciate that banning natural gas power generation would leave us in situations of actual shortage – a terrifying spectacle in the event of minus 50 degree weather?

Again, the point here is to underscore the value proposition of natural gas and the infrastructure that delivers it: the reliability these provide is extraordinarily important. This value is particularly well demonstrated when severe weather – a Canadian reality – hits us.  We have to stop talking about eliminating the choice of energy options like natural gas, and relying exclusively on one energy delivery system, like electricity. Each delivery system has its own advantages, and natural gas is particularly well suited to meet heating needs. That should never be overlooked, as this month’s weather events reminded us.

Prime Minister, when it comes to energy – in supply options, and in delivery systems – diversity truly is our strength in Canada.  We must maintain natural gas as an option for reliability, for affordability, and for sustainability – all of which are essential for our country’s energy security and the wellbeing of the Canadian consumer.

Respectfully,

Timothy M. Egan
President and CEO, Canadian Gas Association
Chair, NGIF Capital Corporation

About CGA

The Canadian Gas Association (CGA) is the voice of Canada’s gaseous energy delivery industry, including natural gas, renewable natural gas (RNG) and hydrogen. CGA membership includes energy distribution and transmission companies, equipment manufacturers, and suppliers of goods and services to the industry. CGA’s utility members are Canadian-owned and active in eight provinces and one territory. The Canadian natural gas delivery industry meets 38 per cent of Canada’s energy needs through a network of almost 584,000 kilometers of underground infrastructure. The versatility and resiliency of this infrastructure allows it to deliver an ever-changing gas supply mix to 7.6 million customer locations representing approximately two-thirds of Canadians. CGA members ensure Canadians get the affordable, reliable, clean gaseous energy they want and need. CGA is also working to constantly improve that gaseous energy offering, by driving forward innovation through the Natural Gas Innovation Fund (NGIF).

SOURCE Canadian Gas Association

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Energy

Is Canada the next nuclear superpower?

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From Resource Works 

The rise of AI and other technologies have pushed energy demand through the roof, and Canada can help power that with nuclear. 

Good to see Prime Minister Justin Trudeau pushing nuclear power as a key contributor to meeting the world’s soaring demand for electricity.

“The energy consumption necessary around AI (artificial intelligence) nobody has properly understood yet,” he said. “We have stepped up big time on nuclear.”

He cited Canada’s uranium reserves and progress in building both full-scale CANDU reactors and small modular reactors (SMRs). He said other countries need to “skate where the puck is going” on cleaner energy sources.

“We know that if we are going to meet our net-zero targets around the world, and certainly in this region, nuclear is going to be really part of the mix.”

He stopped short of saying Canada would build more major nuclear reactors for domestic use but spoke about the development of SMRs. Ottawa has previously stated it wants to become “a global leader in SMR deployment.”

Meanwhile, International Trade Minister Mary Ng said Canada is launching a gateway for nuclear development in the Asia-Pacific region. She said growing Pacific Rim economies will face increasing demand for electricity, not just to curb emissions.

“All this followed CANDU licence-holder AtkinsRéalis announcing a “multi-billion-dollar” sale of two CANDU reactors to Romania, the first to be built since 2007. The federal government contributed $3 billion, the company said.

And in one of our Resource Works Power Struggle podcasts, energy journalist Robert Bryce said: “We’re seeing the revitalization of the nuclear sector… There are a lot of promising signs.”

Also from Bryce: “Forty-seven per cent of the people on the planet today live in electricity poverty. There are over three billion people who live in the unplugged world; 3.7 billion who live in places where electricity consumption is less than what’s consumed by an average kitchen refrigerator.”

Policy Options magazine notes how Canada and 21 other countries signed a 2023 pledge to triple nuclear energy capacity by 2050, and says: “The reality would appear to be clear: there is no feasible net-zero future without the deployment of new nuclear power.”

For Canada, it adds: “We have an opportunity to expand our global status, but this requires overcoming years of policy inaction while other nations have modernized their nuclear strategies. To triple our nuclear capacity by 2050, we need clear priorities and unwavering political commitment.”

Earlier this year, François-Philippe Champagne, federal minister of innovation, science and industry, said nuclear power needs to grow for the world’s renewable-energy economy.

“Nuclear, definitely. For me, we have to look at hydro, we have to look at nuclear, we have to look at small modular reactors, we have to look at wind, we have to look at solar.”

Jonathan Wilkinson, energy and natural resources minister, promised to expedite the approval process for new Canadian nuclear projects.

Canada now gets about 15% of its electricity from nuclear generation, mostly from reactors in Ontario.

But the last nuclear reactor to come into service in Canada was at the Darlington station, east of Toronto, back in 1993. No new nuclear project has been approved since then, but multi-million-dollar upgrades are underway at existing Ontario plants.

Heather Exner-Pirot of the Macdonald-Laurier Institute and Jesse McCormick of the First Nations Major Projects Coalition see SMRs and micro-reactors as a plus for rural and remote areas of Canada that now rely on diesel to generate power. Some First Nations are also interested.

However, the two commentators point out that nuclear developers will need Indigenous support and will have to “provide meaningful economic benefits and consider Indigenous perspectives in project design.”

Now, the Wabigoon Lake nation in Ontario has stepped up as a potential host to a deep underground facility for storing nuclear waste.

As Canada looks to SMRs to meet electricity demand, our country also hopes to sell more uranium to other nations—perhaps with a little help from Russia.

In October, Russian President Vladimir Putin proposed restrictions on Russian uranium exports in retaliation for Western sanctions on Russian oil, gas, and LNG.

That boosted hopes for increased exports of Canadian uranium.

Canada, once the world’s largest uranium producer, is now the world’s second-largest, behind Kazakhstan, and accounts for roughly 13% of global output.

Putin’s threat gave more momentum to the plans underway by NexGen Energy for its $4-billion Rook 1 uranium mine in Saskatchewan.

The Canadian Nuclear Safety Commission has completed its final technical review of the project. Next comes a commission hearing, followed by a final decision on approval.

NexGen is working on detailed engineering plans in preparation for full construction, pending federal approval.

NexGen could push Canada to become the world’s largest uranium producer over the next decade. Other companies are rushing to Saskatchewan to start exploration projects in the Athabasca region, while existing players are reopening dormant mines.

All this follows the commitment by nearly two dozen countries in 2023 to triple their nuclear-energy output by 2050.

And so Britain’s BBC News topped a recent roundup on nuclear power with this headline: “Why Canada could become the next nuclear energy ‘superpower’.”

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Alberta

REPORT: Alberta municipalities hit with $37 million carbon tax tab in 2023

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Grande Prairie. Getty Images photo

From the Canadian Energy Centre

By Laura Mitchell

Federal cash grab driving costs for local governments, driving up property taxes

New data shows the painful economic impact of the federal carbon tax on municipalities.

Municipalities in Alberta paid out more than $37 million in federal carbon taxes in 2023, based on a recent survey commissioned by Alberta Municipal Affairs, with data provided to the Canadian Energy Centre.

About $760,000 of that came from the City of Grande Prairie. In a statement, Mayor Jackie Clayton said if the carbon tax were removed, City property taxes could be reduced by 0.6 per cent, providing direct financial relief to residents and businesses in Grande Prairie.”

Conducted in October, the survey asked municipal districts, towns and cities in Alberta to disclose the amount of carbon tax paid out for the heating and electrifying of municipal assets and fuel for fleet vehicles.

With these funds, Alberta municipalities could have hired 7,789 high school students at $15 per hour last year with the amount paid to Ottawa.

The cost on municipalities includes:

Lloydminster: $422,248

Calgary: $1,230,300 (estimate)

Medicine Hat: $876,237

Lethbridge: $1,398,000 (estimate)

Grande Prairie: $757,562

Crowsnest Pass: $71,100

Red Deer: $1,495,945

Bonnyville: $19,484

Hinton: $66,829

Several municipalities also noted substantial indirect costs from the carbon tax, including higher rates from vendors that serve the municipality – like gravel truck drivers and road repair providers – passing increased fuel prices onto local governments.

The rising price for materials and goods like traffic lights, steel, lumber and cement, due to higher transportation costs are also hitting the bottom line for local governments.

The City of Grande Prairie paid out $89 million in goods and services in 2023, and the indirect costs of the carbon tax have had an inflationary impact on those expenses” in addition to the direct costs of the tax.

In her press conference announcing Alberta’s challenge to the federal carbon tax on Oct. 29, 2024, Premier Danielle Smith addressed the pressures the carbon tax places on municipal bottom lines.

In 2023 alone, the City of Calgary could have hired an additional 112 police officers or firefighters for the amount they sent to Ottawa for the carbon tax,” she said.

In a statement issued on Oct. 7, 2024, Ontario Conservative MP Ryan Williams, shadow minister for international trade, said this issue is nationwide.

In Belleville, Ontario, the impact of the carbon tax is particularly notable. The city faces an extra $410,000 annually in costs – a burden that directly translates to an increase of 0.37 per cent on residents’ property tax bills.”

There is no rebate yet provided on retail carbon pricing for towns, cities and counties.

In October, the council in Belleville passed a motion asking the federal government to return in full all carbon taxes paid by municipalities in Canada.

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.

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