How a Co-operative Approach is Adding Value to a Biofuel Operation in the Cowichan Valley: From Feedstock to Carbon Credits, it s not just about

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1 How a Co-operative Approach is Adding Value to a Biofuel Operation in the Cowichan Valley: From Feedstock to Carbon Credits, it s not just about making Biofuel!

2 2012 is the U.N. International Year of the Co-operative.

3 Outline Introduction: A bit about us and why we dig Biofuels! A Co-operative Approach: From Memberships to Partnerships. Maximizing the Value-adds: Piecing it all together, from Feedstock to Carbon Credits

4 Brian Roberts, M.Sc., P.Ag., P.Geo. BC Government Research Environmental Consulting VIU Sessional Instructor Community Initiatives

5

6 Core Motivations: Energy Security (Resilience) GHG Reductions/Low Carbon Economy Sustainable Silver Buckshot Solutions Realize Local Potential (Low Hanging Fruit)

7 What is Biodiesel? A vegetable oil-based biofuel that is: renewable, clean-burning biodegradable non-toxic carbon-neutral produced from locally available feedstocks can be used NOW with existing diesel engine technology

8 What are the Benefits? Benefits of Bio-Diesel include: mechanical environmental health socio-economic

9 Air Quality & Health Improvements

10 Carbon Neutral

11 Local Solutions to Global Problems One hundred and fifty years ago humans started a grand, uncontrolled experiment with carbon on earth. We don't know exactly how the experiment will turn out, but it will certainly change our climate and our lives." -George Kling

12 Energy Security

13 Food Security Agricultural production is > 90% oil dependent.

14 The start of a blocked pipe begins when grease and solids collect on the top and sides of the pipe interior. The build-up increases over time when grease and other debris are washed down the drain. Excessive accumulation will restrict the flow of wastewater and can result in a sanitary sewer overflow. Sanitary Sewer Overflows occur and expose untreated wastewater to humans, animals, and the environment Wastewater will back up in manholes, sewer cleanouts, and even home plumbing Manhole Sewer Cleanout Storm Drain Grease and Solids accumulate and block the flow of wastewater

15 Low Hanging Fruit is an EROEI of: 3:1 for biodiesel made from virgin vegetable oils ~8:1 for biodiesel made from recycled waste cooking oils

16

17 Key Contributing Organizations: Cowichan Bio-Diesel Co-op (CB-DC) Cowichan Energy Alternatives (CEA) Greasecycle (GC) Local Gov t: Cowichan Valley Regional District Private Sector: Cowichan Petroleum Sales Credit Union: Vancity Cowichan Energy Alternatives Society

18 Started in 2004 by about 20 enthusiasts to support local bio-diesel production and use. Early distribution bio-diesel by the jug at the Duncan Farmers market. Currently 180+ members have collectively reduced CO2 emissions by over 500 tonnes. Distribution now through a card lock system open 24/7 located at CPS in Duncan.

19 C.E.A. is a non-profit that formed in 2008 to: Identify and implement feasible renewable energies and carbon reduction strategies focus on local solutions Support local citizens, businesses and government to actively adopt sustainable energy practices Research and Education Energy & Carbon Footprint Assessment

20 Focused on Waste Cooking Oil collection. Formed to ensure feedstock supply for biofuels with support from VanCity. Employee owned and operated

21 Distribution to Co-op Members WVO Collection BioFuel Production (Residential WVO Collection, Education, Outreach)

22 A Key Partner making the CBF possible Supporting the Cowichan BioFuel Initiative since 2007 Hosting the Cowichan BioFuel Facilitiy at Bings Creek as part of Zero Waste commitment Funding for Building Upgrades (Gas Tax) Commitment to Purchase Bio-Diesel to meet Carbon Neutral Commitment

23 A private Fossil Fuel seller that hosts the Coop s Biofuel Distribution Cardlock on their site CPS sells only fossil fuel, and the Co-op sells only pure Biofuels

24 More than just a Banker! Provides Loans and Grants for Community-Based Sustainability Initiatives Leads by Example to Actively Create the Kind of Community it s Members want to see.

25 Current Partners and Supporters: Mid Island Co-op Generous donation of $5000 in 2010 CVRD Host at Bings Creek and commitment to use bio-fuels to reduce GHG Cowichan Tribes Solar Community and Energy & Emissions Plan VIU Donation of biofuel equipment, educational events VanCity Loans and Funding through Grants Province of BC JCP Funding Federal Government Co-op Development Initiative Funding Cowichan Petroleum Sales Fueling location Nanaimo Recycling Exchange Waste Oil Recycling and Fueling Location

26 Cowichan BioFuel Facility - Before

27

28 Waste Cooking Oil Collection

29

30 Biofuel Distribution B100 and SVO Cardlock service hosted by Cowichan Petroleum Sales, 2999 Allenby Road

31

32

33 Glycerin as an Energy Source Fuel type Common Unit of Vol. Vol. (L) Mass Density (Kg/L) Energy Density (MJ/Kg) MJ/L MJ/ Barrel $/GJ cents/ MJ cents/ L $/ Barrel Softwood Drum Hogged Fuel Drum SVO Drum Glycerin Drum Glycerin/Meth 85/15 Drum B100 Drum Methanol Drum Energy and monetary values are based on a combination of estimates and works cited by Gell, K in a 2011 report for Cowichan Bio-Diesel Co-op: Assessment of biodiesel byproducts as direct combustion fuel.

34 A Facility for Demonstrating Innovation Solar Hot... WVO? Alternative Energy Idea In The Cowichan Valley Is One Of A Kind - Nitya Harris, SolarBC

35 Zero Waste and Renewable Energy Educational Tours Cowichan Energy Alternatives Society

36 BC Premiere of the documentary film FUEL SUNDANCE Film Fest, Audience Award for Best Documentary PUBLIC AWARENESS, ADVOCACY AND EDUCATION

37 Cowichan Energy Alternatives Society

38 Projects: Solar Thermal: Community Bulk Buy in cooperation with SolarBC and Cowichan Carbon Busters; Solar for Schools; Cowichan Tribes Solar Community Educational Events: BC Premiere of documentary film FUEL and Canadian Premier of Freedom at 2011 CBC Cowichan BioFuel Initiative: Facilities operated at Bings Creek, Bio-Fuels Distribution through CB-DC, CPS and NEE partners. Support from CVRD, VIU, VanCity and the Province Carbon Footprint Assessments and Offsetting Projects. Upcoming Launch of the Community Carbon Marketplace

39 Clean energy/ghg reduction strategies and initiatives Shawnigan Lake and Brentwood Schools are onboard and CEA is part of the High School Climate Challenge with the Clean Air Champions Program

40 Solar Communities Solar Thermal

41 Cowichan Tribes Energy and Emissions Planning

42 Since it s creation the CB-DC has collectively reduced CO2e emissions by over 500 tonnes. At a current value of $25/tonne, that s $12,500 that could be added to the bottom line! But how do the little guys benefit from a Carbon Trading Market?

43 Vision: Support development of a sustainable local low carbon economy by directing offsetting dollars to verifiable GHG reduction initiatives. Objectives: 1) To create a Community Carbon Marketplace where carbon credits are exchanged to benefit local initiatives. 2) To assist communities with strategies to reduce GHG emissions through local offsetting projects 3) Keep carbon credit $ in community investing in long - term local energy resilience & emissions reductions

44

45 Organization and Communication among partners Public disconnect with energy issues and a perception that locally made sustainable biofuel must be priced competitively with fossil fuels Achieving sustainable economies of scale for core activities Avoiding mission creep and overstretching to diversify revenue sources Access limitations for small-scale pioneering initiatives to equipment, infrastructure and support systems focused on supporting large and mega-scale solutions

46 Conclusions Small-scale operations need to identify opportunities (low-hanging fruit) and maximize the value-adds to achieve financial sustainability. It s not just about making Biofuel! A Co-operative approach that builds mutuallybeneficial partnerships can be used to realize additional revenue-streams from both core and none-core activities. You don t have to do it all on your own.

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