Techno-economic options analysis for renewable natural gas (bio-RNG) projects using forest biomass feedstock in Alberta

Canada’s oil sands industry is an important contributor to the Canadian economy and a significant consumer of natural gas. However, the greenhouse gas (GHG) emissions intensity of oil sands extraction and upgrading has been highlighted as a major concern by numerous stakeholders. Bioenergy derived from forest biomass is generally considered to have less embodied GHG emissions than comparative fossil-fuels when sustainable harvest practices are utilized. This provides an opportunity for the energy sector to blend forest-derived bio-fuels with fossil fuels for improved GHG emissions performance while providing investment and employment opportunities in the forestry sector.

There has been limited research into the potential for bioenergy and bioproducts to contribute to environmental and economic improvements in Alberta’s energy sector. As part of their involvement with the Canadian Oil Sands Innovation Alliance (COSIA), Natural Resources Canada – Canadian Forest Service contracted TorchLight Bioresources to conduct a screening level assessment of the opportunities to utilize forest products in existing and future oil sands operations. Further analysis was contracted to estimate the life-cycle GHG-emissions associated with forest-based bioenergy projects including the generation of renewable natural gas (bio-RNG) generation for use in combined heat-and-power (bio-CHP) applications and for injection into existing natural gas pipelines. Further technical and economic investigation is required to accurately identify opportunities and accelerate the commercialization of these technologies.