WUEG April 2015 Newsletter

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programs like public transportation infrastructure and low income housing weatherization. In addition to Quebec, other Canadian provinces have a mixed record with climate policies. For example, British Columbia pioneered its carbon tax on fossil fuel consumption in 2008 (still the only carbon tax in North America). Since then, per capita fossil fuel consumption decreased 16% while it increased 3% for the rest of Canada. Furthermore, since the carbon tax revenue is used solely to offset other taxes, British Columbia has "the lowest personal income tax rate in Canada and one of the lowest corporate rates in North America" according to The Economist. Economics literature refers to this usage of carbon pricing to both lower emissions and reduce distortionary taxes—like income taxes—as a "double dividend". On the other hand, Alberta is endowed with natural resources and emits the most greenhouse gases among the provinces. As a result of lackadaisical regulation over Canadian tar sands development, Alberta increased its greenhouse gas emissions from 2005 while almost every other province reduced emissions. In fact, of the three provinces with emissions increases, Alberta saw the largest pollution increase (14%). Unfortunately and expectedly, Alberta has no plans for any carbon tax or trading policy. This disparity between the climate action taken by different provinces (especially compared to Ontario which has a sizable emissions volume) clearly illustrates the fossil fuel extraction lobby's strong influence in obstructing economically and environmentally efficient policies. Elsewhere in the world, cap-and-trade is under attack by fossil fuel lobbyists. For example, Tony Abbott's administration, which has coal industry ties, abolished Australia's emissions trading scheme last summer. Similarly, while super-majors like Royal Dutch Shell and BP verbally support governmental carbon pricing, the fossil fuel industry's actions reveal hypocrisy. For example, Shell and BP refineries are members of the Western States Petroleum Association, which is now actively lobbying against Washington Governor Jay Inslee's capand-trade legislation proposal. A leaked slide deck reveals WSPA’s strategy to destroy AB32 itself. It is in this context that Kathleen Wynne's Liberal provincial government in Ontario is announcing its cap-and-trade proposal. Interestingly, Ontario actually first committed to the Western Climate Initiative system back in 2008 but backed out along with other jurisdictions (with Quebec and California remaining). From a game theory perspective, any new jurisdiction joining carbon pricing helps to signal commitment to climate action and counteracts concerns about trade disadvantages. Thus, in the months leading to the Paris COP, Ontario's decision to join WCI builds up the ‘network effect’ for carbon pricing both amongst Canadian provinces and around the world. Sources: The Wall Street Journal Reuters The Economist The Seattle Times Bloomberg California Environmental Protection Agency Environment Canada
Dr. John Vohs is a Chemical and Bio-molecular engineer who has received numerous awards for his research in fuel cells and energy. He earned his BS in Chemical Engineering from the University of Illinois and his PhD in Chemical Engineering from the University of Delaware. Our interview explored biofuels and energy storage and what the future holds for making these technologies viable. Charles Gallagher – Vice President, Academic Committee Charlie Gallagher: What is your area of research? Dr. John Vohs: My area of research is mostly in the energy area but I do fundamental work on how molecules absorb and react on surfaces, which is important in transformation of organic molecules for everything from making fuels and chemicals to making soap— you name it. One project I’m working on: biomass as a renewable carbon source as opposed to fossil fuels. To do that, you have to convert the organic molecules in the biomass to something that looks more like gasoline. Several transformations have to be done to do that. CG: What are the most promising biofuels? JV: The problem with biomass is that you have to have fast-growing plants that you can harvest the biomass from—you can’t take trees that take 50 years to grow. In Brazil, they have an ethanol economy where they’re using sugar cane to make ethanol. They live in a place where they can grow it year round. But in the US you can’t grow that year round. The other challenge facing biomasses is that oil and natural gas can be easily transported, but with biomasses the picture is not so clear. You’re lucky if you break even [both economically and in carbon emissions]. Biomass as a long-term viable method to make sustainable fuels? Probably not; not many people believe that. CG: So, hypothetically what would the solution look like? JV: If you can only provide 1% of your energy needs, who cares? Economically it will never scale or make sense. You need technologies that can provide at least 10% of your energy needs. And you have to look at the end uses. So right now liquid hydrocarbon fuels are used for transportation. If you want fuel range, you need liquid transportation fuels. That’s where biomass might play a role: for transportation fuels. CG: Let’s switch to energy storage and fuel cells. JV: I do a lot of research on fuel cells. Fuel cells could be used as energy storage. So for example I could hook up a hydrogen fuel cell to a wind or solar installation. When I’m making excess electrons and want to store this electricity for nighttime use, I could run the fuel cell in reverse—called electrolysis—where I use the electrons to dissociate water and make hydrogen and oxygen. And then at night when I need [the electricity] I run it in the other direction to convert back to electrons. CG: What is the efficiency of that process? JV: Hydrogen fuel cells are efficient when generating power—probably 65% efficient. Which is excellent as far as energy technologies go. The electrolysis side—the
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WUEG April 2015 Newsletter

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