Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2004-2005

Chapter 6: Transportation

Energy Use and Greenhouse Gas Emissions

The transportation sector consists of three sub-sectors: passenger, freight and off-road. Passenger and freight transportation accounted for 56.0 percent and 40.1 percent, respectively, of transportation energy use, with off-road representing only 3.9 percent in 2003. The passenger sub-sector is composed of three modes: road, rail and air. The freight sub-sector, as defined by Natural Resources Canada (NRCan), is composed of road, rail, air and marine. Road transport uses the most energy, accounting for 79.0 percent of total transportation energy use in 2003. Of this amount, 59.4 percent was passenger energy use and 40.6 percent was freight energy use (see Figure 6-1).

All NRCan transportation energy-use programs focus on the energy used in road transportation. Total transportation energy use increased by 25.7 percent (483 petajoules) over 1990 to 2003 (see Figure 6-2). Passenger transportation energy use increased by 15.1 percent (173 petajoules), while freight transportation energy use increased by 40.1 percent (271 petajoules).

Three main factors influenced energy use:

• activity – due to increases in population and economic activity, there was greater transportation activity (measured as passenger-kilometres for passenger transportation and tonne-kilometres for freight transportation). This increased transportation energy use by 33.2 percent (592 petajoules). The freight and passenger segments contributed to this increase by 51.1 percent and 48.9 percent, respectively.
• structure — shifts between modes of transport within both the freight and passenger segments resulted in an increase of 8.1 percent in transportation energy use (144 petajoules). The effects of mode shifting were more pronounced in the freight segment since freight truck activity is growing significantly faster than rail and marine.
• energy efficiency – improvements in energy efficiency worked to decrease energy use by 15.7 percent (280 petajoules).

Without improvements in energy efficiency, increases attributable to activity and structure would have led to an increase in transportation energy use of 41.2 percent (736 petajoules). However, as a result of improvements in energy efficiency, actual energy use increased by 25.7 percent. This change in energy use between 1990 and 2003, as well as the estimated energy savings due to energy efficiency, is shown in Figure 6-2.

The transportation sector accounts for 27.9 percent (2361 petajoules) of secondary energy use and 33.6 percent (169 megatonnes) of greenhouse gas (GHG) emissions. From 1990 to 2003, transportation energy use increased by 25.7 percent, and GHG emissions increased by 25.0 percent. The change in GHG intensity of transportation energy use was negligible.

Figure 6-3 shows how the market share of new light trucks increased in the 1990s, reflecting the growth in popularity of minivans and sport-utility vehicles. Figure 6-4 demonstrates that, on a per-kilogram or per-unit-of-horsepower basis, fuel efficiency has improved markedly. However, average fuel economy has been stable because new vehicles continue to be heavier and have more powerful engines.

Figure 6-5 illustrates an improvement in trucking energy intensity despite an increase in average activity over 1990 to 2003. Improved fleet practices, caused by an increase in the competitiveness of the transportation sector and by the introduction of electronic engines, have significantly improved engine fuel efficiency in medium-duty and heavy-duty trucks.

NRCan delivers initiatives in the following areas to increase the efficiency of motor vehicles and encourage the use of alternative fuels:

• vehicles
• transportation research and development
• alternative transportation fuels
• transportation technologies.

Vehicles: Vehicle Efficiency

Objective: To improve the fuel efficiency and reduce the GHG emissions of new light-duty vehicles sold in Canada.

The Motor Vehicle Fuel Efficiency Initiative is intended to bring about a 25 percent improvement in the fuel efficiency of new light-duty vehicles sold in Canada by 2010. NRCan has led negotiations with the automotive industry to a successful conclusion, reaching an agreement to reduce GHG emissions from this sector. The auto industry committed to a voluntary reduction in GHG emissions of 5.3 megatonnes (Mt) annually from light-duty vehicle use by 2010. This 5.3-Mt target exceeds the GHG emissions reductions being sought under the 25 percent target, by going beyond fuel consumption reductions and incorporating reductions in all GHG emissions associated with vehicle use.

Key 2004-2005 Achievements

• Researched and analysed the level of effort and the cost implications to auto manufacturers of meeting the 25 percent target, based on different agreement types; analysed the sensitivity of fuel consumption to market shifts between different vehicle segments.
• Completed a joint study, between NRCan and U.S. Department of Energy, on the future potential of hybrid and diesel powertrains in the North American light-duty vehicle market.
• Completed negotiations with industry and finalized a Memorandum of Understanding to reduce GHG emissions from light-duty vehicles in Canada by 5.3 Mt by 2010.

For more information:
oee.nrcan.gc.ca/transportation/fuels/motorvehicles.cfm

Vehicles: EnerGuide for Vehicles

Objective: To improve motor vehicle fuel efficiency by encouraging private motorists to purchase energy-efficient vehicles.

EnerGuide for Vehicles promotes the purchase of fuel-efficient vehicles in order to reduce vehicle emissions and mitigate other vehicle-related environmental impacts. It offers a series of tools to help Canadian motorists consider fuel efficiency in their vehicle purchase decisions, and encourages buyers to choose the most fuel-efficient vehicle that meets their everyday needs.

Each year, the free Fuel Consumption Guide provides fuel consumption ratings and the estimated annual fuel cost, fuel consumption and carbon dioxide (CO₂) emissions for new passenger cars, light-duty pickup trucks, vans and special purpose vehicles sold in Canada. The EnerGuide label, which is affixed on the side window of new light-duty vehicles sold in Canada, provides specific fuel consumption information for each model. Every year, the EnerGuide for Vehicles Awards recognize the most fuel-efficient vehicles in nine categories. Awards are presented to the manufacturers.

NRCan is also developing a New Vehicle Ranking System to provide a visible signal directing consumers and fleets to the purchase of fuel-efficient and lowCO₂-emitting vehicles.

Key 2004–2005 Achievements

• Attended major Canadian Auto Shows to highlight the impact of personal transportation on GHG emissions and to promote the purchase of energy-efficient vehicles. In particular, in collaboration with the One-Tonne Challenge, a new exhibit was launched at the Canadian International Auto Show in Toronto, Ontario, with the overall message for consumers: "You’re in the Driver’s Seat, Making Smart Choices About Your Transportation."
• Distributed 300 000 copies of the 2005 Fuel Consumption Guide and tabletop display to 1189 Canadian Automobile Association retail offices, 3500 dealerships and other outlets across Canada.
• Initial consultations have occurred with stakeholders to discuss options for the New Vehicle Ranking System (NVRS). Research has been completed to identify key target audiences for marketing the NVRS.

For more information:
oee.nrcan.gc.ca/vehicles

Vehicles: Personal Vehicles

Objective: To improve motor vehicle fuel efficiency by encouraging private motorists to develop energy-efficient vehicle use and maintenance practices.

Personal Vehicle information initiative promotes improving vehicle fuel efficiency in order to reduce vehicle emissions and mitigate other vehicle-related environmental impacts. The program helps motorists understand how driving and maintenance behaviours affect climate change and the environment. It encourages Canadians to adopt fuel-efficient driving techniques and maintenance practices. This initiative complements EnerGuide for Vehicles.

Key components include the newly launched Auto$mart "A New Point of View" Driver Educator kit, which provides instructors with the instruments (instructor’s in-class materials, student workbook, instructor’s in-car guide, video, CD-ROM, student tips cards, and fuel consumption calculator) to teach fuel-efficient driving to drivers; the Idle-Free Campaign, which seeks to curb vehicle idling; and the Be Tire Smart Campaign developed in collaboration with the Rubber Association of Canada, which seeks to have Canadians adopt good tire maintenance and inflation practices. Recently the initiative has been working in collaboration with Transport Canada to explore the potential for developing a program to encourage Canadian motorists to adopt good speed-management practices.

Key 2004-2005 Achievements

• Successfully launched a new driver educator program developed through stakeholder consultations (provinces, Canada Safety Council, Transport Canada, Road Safety Educators’ Association, and driving school associations). Key achievements include the development of a phase-in approach to provincial driver training and examination; the revision of the Auto$mart Student Driver Kit to a driver educator-based Auto$mart "A New Point of View" Driver Educator kit; and the training of master trainers who are currently providing training to Canadian driving instructors on how to incorporate the materials into their existing curricula.
• Successfully completed an idling campaign with Better Environmentally Sound Transportation in the Greater Vancouver Regional District. Initiated multi-year collaborative agreements with the Clean Air Partnership and Halifax Regional Municipality to review and develop regulatory and voluntary approaches to idling behaviour and to conduct an Idle-Free campaign, respectively.
• Launched a national level "Be Tire Smart Week" and conducted regional campaigns in Quebec and British Columbia.

For more information:
vehicles.gc.ca

Vehicles: Fleet Vehicles

Objective: To improve the fuel efficiency and reduce the GHG emissions in commercial and institutional road transportation fleet operations and all other non-Government of Canada vehicle fleets through energy efficiency practices and the use of alternative fuels.

Fleet Vehicles provides information materials, workshops, technical demonstrations, driver training programs and special projects, such as the truck stop Idle-Free – Quiet Zone Campaign, to help fleet operators assess and pursue opportunities to increase energy efficiency in their operations. To increase market penetration of fuel-efficient and emission-reduction technologies, the Fleet Vehicles initiative also provides financial incentives to commercial fleets purchasing pre-selected anti-idling technologies and natural gas vehicles. NRCan delivers the Fleet Vehicles initiative in partnership with fleets, industry stakeholders and other levels of government.

Key 2004-2005 Achievements

• To date, the Fleet Vehicles initiative has registered over 3625 members. The annual truck stop Idle-Free – Quiet Zone Campaign was successfully conducted at more than 80 sites across Canada.
• A third driver-training curriculum has been added to the SmartDriver family of tools, SmartDriver for Transit. More than 200 000 new and experienced commercial drivers have been trained in highway and forestry trucking and the transit industry.
• The Commercial Transportation Energy Efficiency Rebate (CTEER) initiative has increased market penetration in its second year of existence. This initiative has provided more than $2.8 million in incentives, an increase of 235 percent in comparison to 2003–2004.
• Natural gas industry partners are piloting EPA-certified compressed natural gas conversion kits for light-duty vehicles and a Liquified Natural Gas Diesel engine for commercial trucking.

For more information:
fleetsmart.nrcan.gc.ca

Transportation Research and Development: Canadian Lightweight Materials Research Initiative (CLiMRI)

Objective: To develop low-density, high-strength, lightweight materials to achieve weight reductions in ground transportation vehicles.

CLiMRI is a research network comprising 29 companies, eight universities and seven government departments and funding agencies. CLiMRI’s goal is to develop and implement lightweight and high-strength materials in transportation applications for the purposes of (a) reducing GHG emissions through vehicle weight reduction and improving vehicle efficiency, and (b) enhancing the competitiveness of Canadian primary metals producers, automotive part manufacturers and suppliers.

Key 2004-2005 Achievements

• Magnesium is one of the lightest of all metals, but its use in automotive applications is currently limited to die-cast parts because of difficulties in producing magnesium in sheet form. CANMET-Materials Technology Laboratory (MTL) has developed a technique to simulate the twin-roll strip casting of magnesium sheet, and the material’s performance is being assessed. Additionally, sand- and permanent-mould casting processes were optimized to produce high-integrity castings. These achievements show significant potential for increasing the use of magnesium in the automotive industry.
• Unlike aluminum, magnesium is prone to corrosion in the presence of chlorides such as road de-icing salt. Corrosion control is therefore a key enabling technology that will lead to wider-scale use of magnesium in automobiles. As part of a larger research program with the U.S. Department of Energy and automakers, CANMET-MTL is leading the corrosion control and coating assessment research for magnesium alloys. Environmentally friendly coatings were selected, and a new material was developed for spacer and washer applications between corrosion-prone areas. The team also helped automakers to prevent premature failures related to metal creep and corrosion fatigue, and contributed to the production of a magnesium engine cradle for the 2006 GM Corvette.
• Recent developments in hydroforming, a metal-shaping process that uses gas or water at high pressures to form tubes of sheet metal, have enabled significant productivity gains and weight reductions for complex structural automotive components. CANMET-MTL is working to extend the commercial use of hydroforming from conventional low-carbon steel to lightweight metals and ultra-high-strength steels. To achieve this goal, a suitable seam-welding process to join tubes made of these materials was developed. Prototype aluminum and high-strength steel tubes were successfully produced for evaluation by clients, and the team demonstrated that magnesium tubes can be shaped to make parts. Furthermore, the team demonstrated that the CANMET-MTL tube-forming method can produce tubes that exceed the quality of many other laboratories and industries in the United States and Europe.

For more information:
climri.nrcan.gc.ca/default_e.htm

Transportation Research and Development: Fuel-Cell-Powered Mining Vehicles

Objective: To develop the technology to replace diesel power by hydrogen fuel cell power in underground mining vehicles.

NRCan has taken a co-leadership role in the North American Consortium for Fuel-Cell-Powered Mining Vehicles. Hydrogen fuel cell power systems are more efficient in delivering power than conventional diesel equipment. Retrofitting diesel-powered vehicles with hydrogen fuel cells should improve vehicle productivity, operating costs and the work environment for underground miners by eliminating toxic underground diesel emissions and by reducing heat and noise. Fuel cells have also been shown to have the potential to significantly reduce CO₂ or GHG emissions by up to one million tonnes per year (26 percent of the total CO₂ equivalent emitted by the mining extraction sector) and decrease operating costs by lowering mine ventilation needs.

Key 2004-2005 Achievements

• Reliability studies for the 4-tonne fuel cell locomotive in the underground environment were completed. Fine-tuning of the power plant improved overall efficiency and reduced operational constraints.
• The developmental project for the fuel cell underground mine loader is now at the power plant assembly stage and will follow with initial performance tests in an industrial environment by the end of 2005.
• An agreement in principle was reached for the development of a fuell cell underground light-duty mining vehicle, as well as a water electrolysis unit for hydrogen production. Light-duty mining vehicles are considered to be the most polluting of all the underground diesel mining vehicles.

For more information:
nrcan.gc.ca/mms/canmet-mtb/mmsl-lmsm/mines/mines-e.htm

Alternative Transportation Fuels: Future Fuels Initiative

Objective: To increase Canada's fuel ethanol production and use in the transportation sector.

The Future Fuels Initiative, co-managed with Agriculture and Agri-Food Canada, targets motorists, provinces and territories, and renewable fuel producers. The main activities under this initiative are public awareness campaigns, federal-provincial policy coordination, industry consultation and analytical work on feedstocks, production costs, greenhouse gas and socio-economic impacts. Additionally, the Initiative includes the National Biomass Ethanol Program, administered by Farm Credit Canada, which aims to overcome lender resistance to investing in ethanol plants due to the uncertainty of future excise tax policy.

Key 2004-2005 Achievements

• Completed detailed study that examined the factors affecting the success of the renewable fuels industry in Canada and presented the results via a workshop to industry, provincial and territorial officials and other stakeholders.
• Developed new public awareness materials for distribution to motorists via fuel distributor partners and other channels.
• Extended GHG emission and energy use modelling capabilities and contributed to important emission and health impact studies.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Ethanol Expansion Program

Objective: To expand fuel ethanol production and use in Canada.

The Ethanol Expansion Program, co-managed with Agriculture and Agri-Food Canada, targets existing and potential fuel ethanol producers and supports the climate change plan goal of having 35 percent of Canadian gasoline contain 10 percent ethanol by 2010. The program provides contributions towards the construction of new fuel ethanol production facilities through a competitive solicitation process. Selection criteria measure the ability of projects to maximize ethanol production and use and reduce transportation GHG emissions. Additionally, the program is investigating how to develop a successful commercial cellulose-based ethanol industry in Canada (i.e. ethanol produced from agricultural residues or wood).

Key 2004-2005 Achievements

• Executed contribution agreements totalling $72 million for six new ethanol plants across Canada. These projects, for which investments total almost $0.5 billion, plan to produce over 650 million litres of fuel ethanol per year and more than quadruple Canadian supply by the end of 2006.
• Launched the second round of the program in December 2004, and commenced the evaluation of plant proposals that were received from across the country pursuant to the February 2005 deadline.
• Continued consultations with stakeholders regarding cellulosic ethanol industry development.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Biodiesel Initiative

Objective: To support increased biodiesel production and use in Canada's transportation sector.

The Biodiesel Initiative supports the Government of Canada’s proposed target of 500 million litres of biodiesel production per year by 2010. The main components of this initiative are research and development, technical and socio-economic studies, end-use demonstrations and testing, stakeholder education and standards development.

Key 2004-2005 Achievements

• Developed national fuel quality specifications for 1 to 5 percent biodiesel blends and continued work on standardization of fuel quality and content on B-2, B-5, B-20 blends and B-100 emissions analysis, fuels specifications and fuel property analysis.
• Completed marine demonstration consisting of 12 cruisers running on various blends of biodiesel.
• Contributed to biodiesel plant feasibility studies across Canada as well as information dissemination to industry stakeholders.

For more information:
vehiclefuels.gc.ca

Alternative Transportation Fuels: Canadian Transportation Fuel Cell Alliance

Objective: To demonstrate and evaluate different processes for the production and delivery of hydrogen to fuel cell vehicles at fuelling stations and to participate in the development of codes and standards.

The Canadian Transportation Fuel Cell Alliance (CTFCA) is a private-public sector initiative composed of technology developers, fuel providers, auto manufacturers, federal and provincial/territorial governments, academia and non-governmental organization representatives. The CTFCA’s work contributes to a reduction in GHG emissions by encouraging advancements in hydrogen and fuel cell technologies through demonstration projects that evaluate the technical, economic and environmental feasibility of different hydrogen fuelling options for fuel cell vehicles. The initiative also establishes a supporting framework for hydrogen fuelling by assisting in the development of codes and standards as well as certification and training programs.

Key 2004-2005 Achievements

• Initiated the construction of three of the "Hydrogen Highway" fuelling stations in British Columbia and took receipt of five Ford Focus fuel cell cars for three years of on-road testing and evaluation in the Vancouver and Victoria areas.
• Documented the regulatory development process in Canada as it relates to hydrogen standards, developed an emergency response guide for hydrogen vehicles and hydrogen fuelling stations, completed a study of the scientific principles used in the development of safety factors used in the design of hydrogen stations, and produced a Web-based computer model for the virtual design of hydrogen fuelling stations.
• Expanded the capability of NRCan’s GHGenius model used to evaluate the GHG and criteria air contaminant emissions, on a life-cycle basis.

For more information:
nrcan.gc.ca/es/etb/ctfca/index.html

Transportation Technologies: Hydrogen, Fuel Cells and Transportation Energy Program

Objective: In partnership with industry, to develop and deploy leading-edge hydrogen and transportation technologies that reduce GHG emissions, minimize other environmental impacts, increase the potential for job and economic growth and extend the life span of Canada’s energy resource base.

Program staff work with stakeholders in the domestic and international hydrogen and transportation industries, including original equipment manufacturers, industry associations, fleet managers, transit authorities, utilities, provincial and territorial governments, research organizations, universities, other federal departments, the U.S. Department of Energy and the International Energy Agency.

Highlights of Hydrogen, Fuel Cells and Transportation Energy Program’s work include

• Supporting Canadian industry in developing a world-leading water electrolysis technology for the production of hydrogen from clean renewable energy sources.
• Working in partnership with Canada’s fuel cell industry over the last 20 years, which has established Canada as a world leader in fuel cell and refuelling technologies; for example, the world’s first hydrogen fuel cell bus was demonstrated in Canada.
• Supporting student vehicle challenges since the 1980s, and bringing university and college students from across North America together with automotive manufacturers to modify existing vehicles to run on a variety of alternative fuels.
• The program has also supported the development of alternative transportation fuel technologies, for example, for natural gas and propane vehicles, which has led to a Canadian industry that is now exporting commercial products.

Key 2004-2005 Achievements

• Organization and sponsorship of world-class conferences, including the Windsor Workshop and the 2004 Canadian Hydrogen and Fuel Cells Conference and Trade Show.
• Development of hydrogen compressor based on metal hydrides to increase efficiency of gas compression.
• Support for Future Truck Student Challenge, in conjunction with the U.S. Department of Energy and the Ford Motor Company, to assist students in designing and implementing alternative fuel technologies.

For more information:
www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/Groups/hyfate_e.htm

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