Danish energy and environment sector exports to Canada have seen impressive growth in recent years, as Canada has taken a serious interest in environmental issues as energy use rises in line with a growing economy and expanding population. Sustainability has become a buzzword, even in more conventional sectors. This presents major opportunities for Danish companies.
Canada has an abundance of Natural resources; hydro, coal, natural gas, uranium, biomass and wind. It is the world’s 6th largest producer of electricity and the 4th largest exporter.
Canada’s electricity demand is projected to increase by 27% by 2025. Meanwhile, 15% of Canada’s current production will be eliminated as generating stations are at the end of their lifespan, or are being shut down for environmental reasons.
The Canadian Electricity Association has estimated that utility companies need 80 billion CAD in investment for nuclear energy infrastructure and another 40-50 billion CAD for hydro-electric sites over the next 10 to 20 years, in order to ensure long-term stability in supply.
Canada has relied on its abundant reserve of fossil fuels to general energy, but recently the Canadian federal, provincial and local Governments have moved towards more environmentally friendly resources. There are ambitious “green goals” across Canada; Ontario aims to cut CO2 emissions by 15% by 2020 and 80% by 2050. British Columbia has a goal to reduce CO2 emissions by 33% by 2020 and increase bioenergy share to 50% of supply. Both Manitoba and Ontario are in the process of closing all coal power. Quebec has targets to reduce oil consumption and generate 7500 MW of new renewable energy (of which 4000 MW is wind). Saskatchewan will reduce CO2 emissions by 20% by 2020, while Nova Scotia aims to increase energy efficiency by 20% by 2020.
This means that opportunities lie across Canada and for varying applications.
Total clean energy investment last year grew 61 percent over the year before, which also saw an increase by 80 percent – this during a time where global investment in clean energy fell due recession. The commitment to and demand for clean solutions is here in broad terms.
We see increasing activity and opportunities for companies supplying:
Efficiency (consumption reduction in industry, commercial as well as private consumers)
Waste and landfill (waste reduction, management, diversion programmes, waste-to-energy)
Water (Municipal water treatment, water loss reduction, water conservation products, industrial applications and reuse as well as storm water management)
Wind - the fastest growing renewable energy source. The installed capacity more than 4.688 MW is expected to be tripling in 2016. There are some Domestic Content requirements and an increasing demand for a stronger supply chain and sub-suppliers with a local set-up.
Bioenergy Several provinces have specific bioenergy development plans in place, and with two provinces converting their coal production, converting to bioenergy. (biomass CHP, coal conversion, organic by-products, biogas, biofuels)
Green Buildings (HVAC, innovative building materials, indoor air quality, green roof solutions, lighting and efficiency management solutions, small renewables – particular solar)
Electric infrastructure upgrades (demand control management, cables, control systems, software)
Attractive opportunities are also seen in “greening” primary sectors, such as oil & gas, forestry, mining and agriculture; these are vital economic drivers, and markets that should not be neglected.
Canada is rated one of the best countries to do business, with excellent infrastructure, integrated transportation network, advanced manufacturing expertise, highly-skilled workforce and low labour costs. It has progressive regulatory systems and long-term ‘green’ government policies, with R&D and tax incentives. Danish companies have a reputation within Canada for being competent and competitive.
TC Canada can help identify the right opportunities for you. As a sector of crucial importance for Danish exports to Canada, we have been extremely involved in the industry for many years. We can provide an established network and industry access to help facilitate your growth in Canada.