Ontario has lost 10 of the…

Ontario has lost 10 of the 15 pulp mills operating in the province in 2000. Only 5 remain and several are at risk of closure. This has resulted in a reduction in timber harvest of 50% compared to 2004 levels. The reason for the reduction is that without a market for low-grade wood fibre and pulpwood, sustainable forestry is not possible. The ONLY proven, high efficiency alternative market for this wood fibre is heat. All other products are not commercial (e.g., liquid biofuels), low efficiency (electricity only), or the market is too small to have a meaningful impact on the forestry industry or forest management (e.g., most bioproducts).

If Ontario is to see large-scale adoption of bioheat, it MUST enable municipalities to develop district energy systems. This is not limited to rural, northern communities, but must service the core of Ontario's population - the GTA. Stockholm and Copenhagen have 400 and 500 MW combined heat and power plants heating their cities, respectively. Why not Toronto, Mississauga, or Hamilton? In the case of most municipalities, they do not have the staff or funds to complete the required district energy feasibility studies. Capital for infrastructure construction - namely the Green Stream of the Investing in Canada Infrastructure Program - is available. But to apply for this fund, feasibility studies must be completed.

I recommend the Province of Ontario establish a fund to support municipalities to complete the required district energy system feasibility studies. The Province can then hold a dedicated district energy system competitive call under the Green Stream of ICIP. This would enable use of local fuels to create local energy and sustainable, economically competitive communities.