Abstract

Many industries have committed to 2030 and 2050 decarbonization targets of keeping global temperatures below 2°C by switching from traditional fossil fuels to alternative fuels (i.e., biofuels) for their operations. Fuel switching to biofuels (biodiesel or renewable diesel produced from biogenic feedstock) will result in a reduction in Scope 1 emissions as combustion of biogenic sources are reported separately from Scope 1 emissions according to the GHG Protocol Corporate Accounting and Reporting Standard, based on the assumption that the emissions would have been sequestered by the growth of the biomass used for the fuel production.

This presentation will showcase the current status of using biofuels in the mining sector and what may be needed to increase implementation in Canada and globally. It will discuss the carbon emissions reduction potential, availability, cost, and operational suitability of biofuels to add to or replace the traditional fossil fuels used at different operations. The scope of this presentation will focus on diesel alternatives such as biodiesel and renewable diesel usage in industrial mobile equipment and locomotives at different mining sites. The approach to this work was to conduct scoping level analysis on the biofuels in terms of the Canadian regulatory frameworks’ influence on market development and supply chain, existing supply chain availability and future projections, current cost of production, and potential implementation barriers, risks, and opportunities.

Currently, biodiesel tends to be more commercially available than renewable diesel, however, biodiesel tends to be produced using first-generation feedstocks which are consumable food sources such as vegetable oils. This may contribute to a potential food vs. fuel debate when resources become scarce. Biodiesel production capacity/scale is also smaller when compared to renewable diesel production, which may become a problem to meet the required demand. Renewable diesel production is moving from using first generation feedstock to second generation feedstock, such as non-food feedstocks and waste materials. This presentation will also highlight some of the current and upcoming projects that Hatch, and other companies are involved in for both production and utilization to emphasize the increasing demand for biofuels in the near future.  It is also important to note that impact associated with land use change would sometimes have a significant effect on the life cycle GHG reduction potential of biofuels, which needs to be better understood.

Since this is a relatively new sector for many people, bringing everyone to an equal understanding of what is currently available and being developed will allow for better discussion on the underlying challenges and areas of improvement required to increase these developments. The underlying challenges may include supply chain development, related policies, financial incentives, and adoption concerns and these will be evaluated to identify actions that will support the acceleration biofuel adoption in industrial mobile equipment.