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Industrial Consumption of Energy (ICE) Survey – Summary Report of Energy Use in the Canadian Manufacturing Sector, 1995–2009

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5 Selected Manufacturing subsectors

Although the Manufacturing sector has 21 subsectors,19 76 percent of all energy consumption in 2009 was by only 4 subsectors, as shown in Figure 8. These subsectors are Paper Manufacturing (NAICS 322), Primary Metal Manufacturing (NAICS 331), Petroleum and Coal Product Manufacturing (NAICS 324) and Chemical Manufacturing (NAICS 325). This section examines these four subsectors in greater detail.

As demonstrated in Figure 8, the share of energy consumption of the Paper Manufacturing subsector decreased substantially from 1995 to 2008 (11 percentage points) and remained at that level in 2009. The Primary Metal Manufacturing subsector’s share increased slightly (3 percentage points) from 1995 to 2008 but decreased by the same amount from 2008 to 2009. The Petroleum and Coal Product Manufacturing subsector experienced an increase in its share of energy consumption over the entire period (6 percentage points). The share of the Chemical Manufacturing subsector remained relatively stable from 1995 to 2009.

Figure 8. Share of energy consumption in the Manufacturing sector,
1995, 2008 and 2009

Figure 8. Share of energy consumption in the Manufacturing sector, 1995, 2008 and 2009.

5.1 Paper Manufacturing subsector (NAICS 322)

Establishments in the Paper Manufacturing subsector produce pulp, paper and paper products. The 2009 ICE survey estimated that this subsector consumed 531 petajoules (PJ) of energy, corresponding to nearly 26 percent of the Manufacturing sector’s energy consumption – making it the largest energy-consuming manufacturing subsector in Canada.

5.1.1 Paper Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 9 illustrates the indexed growth of energy intensity, energy use and gross domestic product (GDP) from 1995 to 2009 for the Paper Manufacturing subsector. It shows similar trends between energy use and GDP as they rise and fall together over time. However, when the GDP grew 14 percent between 1998 and 2000 and then grew 6 percent between 2001 and 2004, energy use increased only 6 percent and 2 percent over the same periods. Conversely, when the GDP fell 18 percent between 2004 and 2008, energy use declined 32 percent. The increasing gap between the two indicators resulted in a decrease of energy intensity over time. However, between 2008 and 2009, the GDP fell substantially (13 percent), while energy use decreased by only 9 percent. This resulted in an increase of energy intensity of almost 6 percent.

Figure 9. Indexed growth of energy intensity, energy use and GDP for the Paper Manufacturing subsector, 1995–2009

Figure 9. Indexed growth of energy intensity, energy use and GDP for the Paper Manufacturing subsector, 1995–2009.

From 1995 to 2009, the Paper Manufacturing subsector’s output decreased 19 percent, from $10.6 billion to $8.6 billion. At the same time, its energy consumption decreased 41 percent, from 901 PJ to 531 PJ. Consequently, the subsector’s associated energy intensity diminished 27 percent, from 85 megajoules per dollar of GDP (MJ/$GDP) to
62 MJ/$GDP, or a 1.9 percent average annual decline.

Of the four largest consumers of energy within the Manufacturing sector, Paper Manufacturing is the only subsector that had a decrease in GDP between 1995 and 2009.

Despite the significant decrease in GDP since 2004 in the Paper Manufacturing subsector, energy use decreased faster. It is possible that this subsector’s output was reduced by closing the most energy-intensive operations first, which would help explain the reduction in energy intensity from 2004 to 2008. However, from 2008 to 2009, energy intensity increased for the subsector, because it too faced the impact of the recession.

As shown in Figure 10, the drop in energy consumption in the Paper Manufacturing subsector from 2004 to 2008 cannot be entirely associated with capacity utilization. In fact, this subsector coped better than the rest of the Manufacturing sector with the recent economic downturn. While capacity utilization for the entire sector decreased 18.6 percent from 2007 to 2009, it decreased by only 9.5 percent for the Paper Manufacturing subsector.

Figure 10. Comparison of capacity utilization rates for the Manufacturing sector and Paper Manufacturing subsector, 1995–2009

Figure 10. Comparison of capacity utilization rates for the Manufacturing sector and Paper Manufacturing subsector, 1995–2009.

In 2004, the Paper Manufacturing subsector consumed 330 PJ more than the second-most energy-consuming subsector (Primary Metal). In 2008, this gap was reduced to only 65 PJ, due in large part to poor market conditions for Canadian paper products, as indicated by the decline in GDP. By 2009, this gap had increased to 112 PJ, and energy intensity increased slightly.

5.1.2 Paper Manufacturing subsector’s energy consumption trends by industry

Figures 11a and 11b illustrate the amount of energy used by the industries that comprise the Paper Manufacturing subsector for 1995–2009. The only industry that increased its energy consumption over the period was the Converted Paper Product Manufacturing industry (NAICS 3222), which was also the only industry to have an increase in energy consumption from 2008 to 2009 (5 percent) even though it experienced a decline in GDP from 2008 to 2009 (5 percent). This industry accounted for only 3 percent of the energy use of the Paper Manufacturing subsector in 2009. That year, the rest of the subsector’s industries experienced a significant drop in energy consumption of 17 percent to 36 percent, mainly as a result of reduced output.

Figure 11a. Energy consumption of the Paper Manufacturing industries,
1995–2009

Figure 11a. Energy consumption of the Paper Manufacturing industries, 1995–2009.

Figure 11b. Energy consumption of the Paper Manufacturing industries,
1995–2009

Figure 11b. Energy consumption of the Paper Manufacturing industries, 1995–2009.

5.1.3 Paper Manufacturing subsector’s energy consumption by source

Table 5 lists energy consumption by energy source for the Paper Manufacturing subsector in 1995 and 2009. Energy consumption for this subsector decreased by 41 percent from 1995 to 2009.

Table 5. Paper Manufacturing subsector’s energy use by energy source,
1995 and 2009

Energy category Energy source 1995 energy 2009 energy Growth, 1995—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 193.7 21.5 145.2 27.4 -25.0
Natural gas Natural gas 156.5 17.4 74.8 14.1 -52.2
Coal/coke Coal 2.4 0.3 X* N/A N/A
RPP** (incl. propane) Heavy fuel oil 63.9 7.1 16.3 3.1 -74.4
Middle distillates 3.2 0.4 1.4 0.3 -56.9
Propane 1.3 0.1 X* N/A N/A
Total, RPP (incl. propane) 68.5 7.6 X* N/A N/A
Spent pulping liquor Spent pulping liquor 343.6 38.1 177.6 33.5 -48.3
Steam and wood Steam 9.1 1.0 15.6 2.9 72.0
Wood 127.4 14.1 98.8 18.6 -22.4
Total, steam and wood 136.5 15.1 114.4 21.6 -16.2
Total, undisclosed values 0.0 0.0 0.9 0.2 N/A
Total 901.1 100.0 530.7 100.0 -41.1

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

According to ICE survey estimates, Paper Manufacturing is the only subsector that produces and consumes spent pulping liquor. The demand for this type of energy, which is the most commonly used energy source in the subsector (33.5 percent, or 177.6 PJ, in 2009), decreased 48.3 percent (166 PJ) between 1995 and 2009. Since 2001, natural gas moved from the third most-used energy source to fourth, after spent pulping liquor, electricity and wood. Natural gas consumption decreased 52.2 percent, or 82 PJ, from 1995 to 2009. The use of heavy fuel oil, electricity and wood also decreased considerably from 1995 to 2009 (74.4 percent, 25.0 percent and 22.4 percent respectively). Although steam remains one of the least-used energy sources by the Paper Manufacturing subsector, it was the only energy source to increase in use from 1995 to 2009 (72.0 percent). The increasing use of steam combined with the significant drop in the use of heavy fuel oil contributed toward making the Paper Manufacturing subsector less greenhouse gas intensive.

Table 6. Paper Manufacturing subsector’s energy use by energy source,
2008 and 2009

Energy category Energy source 2008 energy 2009 energy Growth, 2008—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 168.9 29.1 145.2 27.4 -14.0
Natural gas Natural gas 71.8 12.4 74.8 14.1 4.2
Coal/coke Coal X* N/A X* N/A N/A
RPP** (incl. propane) Heavy fuel oil 19.6 3.4 16.3 3.1 -16.8
Middle distillates 1.6 0.3 1.4 0.3 -12.2
Propane X* N/A X* N/A N/A
Total, RPP (incl. propane) X* N/A X* N/A N/A
Spent pulping liquor Spent pulping liquor 184.2 31.8 177.6 33.5 -3.6
Steam and wood Steam 18.2 3.1 15.6 2.9 -14.3
Wood 114.1 19.7 98.8 18.6 -13.4
Total, steam and wood 132.3 22.8 114.4 21.6 -13.5
Total, undisclosed values 1.5 0.3 0.9 0.2 N/A
Total 580.1 100.0 530.7 100.0 -8.5

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

Most of the trends observed about energy sources used by the Paper Manufacturing subsector from 1995 to 2009 also applied for 2008 to 2009, with the exception of natural gas consumption, which increased by 4.2 percent, and steam, which decreased by 14.3 percent.

5.2 Primary Metal Manufacturing subsector (NAICS 331)

The Primary Metal Manufacturing subsector includes establishments that perform the smelting and refining of ferrous metals (those that contain iron, including iron-containing alloys such as steel) and non-ferrous metals (those that do not contain iron, such as aluminum and copper). Smelting refers to the “heat treatment of an ore to separate the metallic portion.” Refining is “a separation process whereby undesirable components are removed to give a concentrated and purified product.”20

The 2009 ICE survey estimates that the Primary Metal Manufacturing subsector consumed 419 PJ of energy, which accounted for 21 percent of the Manufacturing sector’s energy consumption, and was the second-most energy-consuming subsector in the Manufacturing sector.

5.2.1 Primary Metal Manufacturing subsector’s energy consumption, output and energy intensity trends

As seen in the Paper Manufacturing subsector, the energy intensity of the Primary Metal Manufacturing subsector declined steadily from 1995 to 2008. This decline was due to a 39 percent increase in output combined with stable energy use (only 4 percent growth). Between 1995 and 2008, this subsector saw its energy intensity decrease 25 percent, from more than 61 MJ/$GDP to 46 MJ/$GDP, or an average annual decrease of 1.9 percent. However, between 2008 and 2009, both GDP and energy use fell substantially (25 percent and 20 percent respectively). This resulted in an increase of energy intensity of almost 7 percent in that one year. Figure 12 illustrates this changing trend.

Figure 12. Indexed growth of energy intensity, energy use and GDP for the Primary Metal Manufacturing subsector, 1995–2009

Figure 12. Indexed growth of energy intensity, energy use and GDP for the Primary Metal Manufacturing subsector, 1995–2009.

As demonstrated in Figure 13, between 2008 and 2009, capacity utilization of the Primary Metal Manufacturing subsector (and in particular the Iron and Steel industry), decreased significantly (20.2 percent) compared with a 12.2 percent decrease for the overall sector. The subsector’s decrease was affected by the continuing recession in the United States and its temporary import restriction on foreign steel21 in 2009.

Figure 13. Comparison of capacity utilization rates for the Manufacturing sector and Primary Metal Manufacturing subsector, 1995–2009

Figure 13. Comparison of capacity utilization rates for the Manufacturing sector and Primary Metal Manufacturing subsector, 1995–2009.

The Primary Metal Manufacturing subsector experienced the largest decrease in output among the four subsectors from 1995 to 2009. Figure 14 illustrates the share of GDP among the Canadian Primary Metal Manufacturing industries for 1997,22 2008 and 2009. As this figure shows, the subsector experienced some structural changes over the years. The largest decrease in output was experienced by the Iron and Steel Mills and Ferro-Alloy Manufacturing (NAICS 3311) industry, (4.2 percentage points from 1997 to 2008 and, more significantly, 6.6 percentage points from 2008 to 2009). In contrast, the Alumina and Aluminum Production and Processing (NAICS 3313) industry’s share of the subsector’s GDP increased 13.3 percentage points from 1997 to 2008 and another 8.4 percentage points from 2008 to 2009. The latter was due to an almost twofold increase in the sale of manufactured goods of the Primary Production of Alumina and Aluminum (NAICS 331313) industry between 1995 and 2009.

Figure 14. Distribution of GDP* of the Primary Metal Manufacturing subsector by industry, 1997, 2008 and 2009

Figure 14. Distribution of GDP* of the Primary Metal Manufacturing subsector by industry, 1997, 2008 and 2009.

5.2.2 Primary Metal Manufacturing subsector’s energy consumption trends by industry

Figure 15 illustrates energy use for the three largest industries in the Primary Metal Manufacturing subsector.23 These industries accounted for 96 percent of the subsector’s energy use in 2009.

Even though energy use in the subsector remained relatively constant from 1995 to 2008 and then decreased substantially between 2008 and 2009 (20 percent), this was not always the case at the industry level. Energy consumption of the Primary Production of Alumina and Aluminum industry (NAICS 331313) increased 35 percent between 1995 and 2008 and then decreased 7 percent between 2008 and 2009. The Iron and Steel Mills and Ferro-Alloy Manufacturing industry (NAICS 3311) and the Non-Ferrous Metal (except Aluminum) Smelting and Refining industry (NAICS 33141) partially offset the aforementioned increase with 2 percent and 18 percent reductions in their respective energy consumption, for the period 1995 to 2008, and further 32 percent24 and 11 percent reductions in their respective energy consumption from 2008 to 2009.

Figure 15. Energy consumption of selected Primary Metal Manufacturing industries, 1995–2009

Figure 15. Energy consumption of selected Primary Metal Manufacturing industries, 1995–2009.

5.2.3 Primary Metal Manufacturing subsector’s energy consumption by source

Table 7 shows the energy consumption by energy source for the Primary Metal Manufacturing subsector in 1995 and 2009. Considering the substantial increase in energy use in the Primary Production of Alumina and Aluminum industry between 1995 and 2009, it is not surprising that electricity consumption continued to grow in this subsector, because this industry is known to be electricity intensive.25 Offsetting this increase in electricity consumption was the combined decrease in the use of all other energy sources (with the exception of middle distillates).

Table 7. Primary Metal Manufacturing subsector’s energy use by energy source, 1995 and 2009

Energy category Energy source 1995 energy 2009 energy Growth, 1995—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 214.4 42.6 220.1 52.5 2.6
Natural gas Natural gas 128.4 25.5 91.6 21.8 -28.7
Coal/coke Coal 9.9 2.0 8.9 2.1 -10.1
Coal coke and coke oven gas 129.6 25.7 75.3 17.9 -41.9
Petroleum coke 2.2 0.4 X* N/A N/A
Total, coal/coke 141.7 28.1 X* N/A N/A
RPP** (incl. propane) Heavy fuel oil 15.4 3.0 14.0 3.3 -9.0
Middle distillates 2.4 0.5 2.9 0.7 21.7
Propane 1.1 0.2 X* N/A N/A
Total, RPP (incl. propane) 18.8 3.7 X* N/A N/A
Steam and wood Steam and wood 0.4 0.1 X* N/A N/A
Total, undisclosed values 0.0 0.0 6.8 1.6 N/A
Total 503.8 100.0 419.5 100.0 -16.7

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

Although electricity consumption increased overall between 1995 and 2009, it decreased between 2008 and 2009, as outlined in Table 8. There was also a substantial decrease in the use of coal coke and coke oven gas between 2008 and 2009 (39 percent). This latter decrease ties in with the decrease in output of the Iron and Steel Mills industry from 2008 to 2009, described in Section 5.2.2.

Table 8. Primary Metal Manufacturing subsector’s energy use by energy source, 2008 and 2009

Energy category Energy source 2008 energy 2009 energy Growth, 2008—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 241.3 42.0 220.1 52.5 -8.8
Natural gas Natural gas 111.8 21.3 91.6 21.8 -18.1
Coal/coke Coal 14.2 2.7 8.9 2.1 -37.3
Coal coke and coke oven gas 124.0 23.6 75.3 17.9 -39.3
Petroleum coke X* N/A X* N/A N/A
Total, coal/coke X* N/A X* N/A N/A
RPP** (incl. propane) Heavy fuel oil 21.3 4.1 14.0 3.3 -34.3
Middle distillates 3.2 0.6 2.9 0.7 -10.1
Propane X* N/A X* N/A N/A
Total, RPP (incl. propane) X* N/A X* N/A N/A
Steam and wood Steam and wood X* N/A X* N/A N/A
Total, undisclosed values 8.7 1.7 6.8 1.6 N/A
Total 524.6 100.0 419.5 100.0 -20.0

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

5.3 Petroleum and Coal Product Manufacturing subsector (NAICS 324)

Establishments in the Petroleum and Coal Product Manufacturing subsector transform crude petroleum and coal into usable products. Petroleum Refineries (NAICS 32411) is the subsector’s main industry for energy use. The petroleum refining process separates various hydrocarbons contained in crude oil to produce many products, such as gasoline, diesel fuel oil, light and heavy fuel oils, and asphalt.

The 2009 ICE survey estimates that the subsector consumed 367 PJ of energy in 2009. This amount is 18 percent of the Manufacturing sector’s energy consumption, ranking Petroleum and Coal Product Manufacturing third in the most energy-consuming subsectors of Canada’s Manufacturing sector.

5.3.1 Petroleum and Coal Product Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 16 illustrates the indexed growth of energy intensity, energy use and GDP for the Petroleum and Coal Product Manufacturing subsector from 1995 to 2009. From 1995 to 1998, both output and energy use increased in the subsector. However, energy use increased at a slower pace, causing energy intensity to fall. Between 1998 and 2007, output remained fairly constant, while energy use increased 23 percent. The combination of these two factors yielded a 19 percent increase in energy intensity in that period. Between 2007 and 2009, GDP and energy use decreased by 5 percent each, leaving energy intensity relatively unchanged.

Figure 16. Indexed growth of energy intensity, energy use and GDP for the Petroleum and Coal Product Manufacturing subsector, 1995–2009

Figure 16. Indexed growth of energy intensity, energy use and GDP for the Petroleum and Coal Product Manufacturing subsector, 1995–2009.

Canada’s Petroleum and Coal Product Manufacturing subsector used 25 percent more energy and produced 13 percent more output in 2009 than it did in 1995.

Due to data limitations, it is not possible to accurately calculate the energy intensity of the industries that compose this subsector. However, because the Petroleum Refineries industry (NAICS 32411) represents 95 percent of the subsector’s energy consumption, it can be inferred that this industry made a significant contribution to the 11 percent growth in the subsector’s energy intensity between 1995 and 2009.

Since 1995, the Government of Canada has introduced several regulations aimed at reducing air pollutants, including the Sulphur in Diesel Fuel Regulations, the Sulphur in Gasoline Regulations and the Benzene in Gasoline Regulations. These regulations set limits on the amount of sulphur and benzene in diesel and gasoline that can be produced, imported or sold, to comply with stringent new standards for exhaust emissions. Complying with these regulations requires further refinement of crude oil, which in turn requires more energy. This may help explain the increased energy intensity of the Petroleum and Coal Product Manufacturing subsector.

5.3.2 Petroleum and Coal Product Manufacturing subsector’s energy consumption trends by industry

The ICE survey collects information on only one industry in the Petroleum and Coal Product Manufacturing subsector – Petroleum Refineries. This industry accounts for about 95 percent of all energy used to process petroleum and coal.

5.3.3 Petroleum and Coal Product Manufacturing subsector’s energy consumption by source

Table 9 shows energy consumption by energy source for the Petroleum and Coal Product Manufacturing subsector in 1995 and 2009. It was the only subsector in the Manufacturing sector to increase its energy consumption between 1995 and 2009 (25.2 percent), although it did experience a decrease in energy consumption between 2008 and 2009 (1.8 percent) (see Table 10). Due to the unavailability of certain 2009 data, it is not possible to determine changes in coal/coke and steam and wood use from 1995 to 2009. From available data, the only energy sources that decreased from 1995 to 2009 were heavy fuel oil and propane, although they were not among the most-used in the subsector. All other energy sources increased over the period. The most significant increase occurred in refinery fuel gas – the most commonly used energy source in the subsector – which had increased 55.5 percent (70.9 PJ) since 1995.

Table 9. Petroleum and Coal Product Manufacturing subsector’s energy use by energy source, 1995 and 2009

Energy category Energy source 1995 energy 2009 energy Growth, 1995—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 17.3 5.9 23.7 6.5 37.0
Natural gas Natural gas 51.0 17.4 53.8 14.7 5.4
Coal/coke Coal 0.9 0.3 X* N/A N/A
Petroleum coke 48.4 16.5 51.2 14.0 5.9
Total, coal/coke 49.3 16.8 X* N/A N/A
RPP** (incl. propane) Refinery fuel gas 127.6 43.6 198.5 54.1 55.5
Heavy fuel oil 41.7 14.3 24.7 6.7 -40.9
Propane 4.9 1.7 0.8 0.2 -83.6
Middle distillates 0.4 0.1 X* N/A N/A
Total, RPP (incl. propane) 174.7 59.6 X* N/A N/A
Steam and wood Steam and wood 0.6 0.2 X* N/A N/A
Total, undisclosed values 0.0 0.0 14.0 3.8 N/A
Total 293.0 100.0 366.7 100.0 25.2

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

As outlined in Table 10, the consumption of refinery fuel gas remained virtually unchanged between 2008 and 2009. Natural gas consumption decreased significantly (14 percent) between 2008 and 2009.

Table 10. Petroleum and Coal Product Manufacturing subsector’s energy use by energy source, 2008 and 2009

Energy category Energy source 2008 energy 2009 energy Growth, 2008—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 22.8 6.1 23.7 6.5 4.1
Natural gas Natural gas 62.6 16.8 53.8 14.7 -14.1
Coal/coke Coal X* N/A X* N/A N/A
Petroleum coke 51.0 13.7 51.2 14.0 0.4
Total, coal/coke X* N/A X* N/A N/A
RPP** (incl. propane) Refinery fuel gas 198.1 53.1 198.5 54.1 0.2
Heavy fuel oil 24.9 6.7 24.7 6.7 -1.0
Propane 1.2 0.3 0.8 0.2 -33.0
Middle distillates X* N/A X* N/A N/A
Total, RPP (incl. propane) X* N/A X* N/A N/A
Steam and wood Steam and wood X* N/A X* N/A N/A
Total, undisclosed values 12.6 3.4 14.0 3.8 N/A
Total 373.3 100.0 366.7 100.0 -1.8

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

5.4 Chemical Manufacturing subsector (NAICS 325)

Establishments in the Chemical Manufacturing subsector manufacture chemicals and chemical products from organic and inorganic raw materials.26 The 2009 ICE survey estimated that the Chemical Manufacturing subsector consumed 238 PJ of energy in 2009, corresponding to 12 percent of the Manufacturing sector’s energy consumption.

5.4.1 Chemical Manufacturing subsector’s energy consumption, output and energy intensity trends

Figure 17 illustrates the indexed growth of energy intensity, energy use and GDP from 1995 to 2009 for the Chemical Manufacturing subsector. From 1998 to 2003, output in the subsector grew rapidly, while energy consumption declined. These two factors yielded a significant decrease in energy intensity over the period. From 2003 to 2006, growth in GDP and energy use was relatively flat. From 2007 to 2009, both GDP and energy use decreased (15 percent and 9 percent respectively), causing energy intensity to rise by 7 percent.

Figure 17. Indexed growth of energy intensity, energy use and GDP for the Chemical Manufacturing subsector, 1995–2009

Figure 17. Indexed growth of energy intensity, energy use and GDP for the Chemical Manufacturing subsector, 1995–2009.

Over the 14 years, Canada’s Chemical Manufacturing subsector increased its output by 6 percent while reducing its energy consumption by 14 percent. This resulted in a 19 percent decrease in energy intensity, from 23 MJ/$GDP to 19 MJ/$GDP, or an average annual decrease of 1.4 percent.

5.4.2 Chemical Manufacturing subsector’s energy consumption trends by industry

Figure 18 illustrates the seven industries for which data are available for the entire study period. In 2009, these industries accounted for 90 percent of the Chemical Manufacturing subsector’s energy use. Between 1995 and 2009, the largest changes in energy consumption occurred in Industrial Gas Manufacturing (NAICS 32512), with a 155 percent increase, and Alkali and Chlorine Manufacturing (NAICS 325181), with a 73 percent decrease. The Petrochemical Manufacturing industry (NAICS 32511) increased its energy consumption the most (21 PJ). Notably, between 2008 and 2009, energy consumption decreased for the seven industries, with the exception of Industrial Gas Manufacturing (NAICS 32512).

There does not seem to be any common trends in energy consumption across industries. Even within an industry, the trend is often not well-defined. This could be caused, in part, by the volatility of the Chemical Manufacturing subsector. The North American Industry Classification System (NAICS) is based on the primary product produced by an establishment. In the Chemical Manufacturing subsector, production processes can be modified such that different products become an establishment’s primary product, potentially moving that establishment from one industry to another at any given time. In addition, such factors as increased energy efficiency and decreased production can influence the yearly variation in energy consumption.

Figure 18. Energy consumption of selected Chemical Manufacturing industries, 1995–2009

Figure 18. Energy consumption of selected Chemical Manufacturing industries, 1995–2009.

5.4.3 Chemical Manufacturing subsector’s energy consumption by source

Table 11 shows the energy consumption by energy source for the Chemical Manufacturing subsector in 1995 and 2009. Natural gas consumption – the most widely used energy source in the subsector – decreased by 15 percent between 1995 and 2009. As in the Paper and Primary Metal subsectors, the rapid increase in the industrial price of natural gas27 may help explain this trend. Both electricity and steam consumption decreased from 1995 to 2009, but these decreases were greater between 2008 and 2009, as demonstrated in Table 12. It is not possible to analyse the trend in the energy consumption of the categories of coal/coke, refined petroleum products and wood because data for 2008 and 2009 were not available.

Table 11. Chemical Manufacturing subsector’s energy use by energy source,
1995 and 2009

Energy category Energy source 1995 energy 2009 energy Growth, 1995—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 71.6 25.8 65.1 27.3 -9.2
Natural gas Natural gas 177.4 63.9 151.6 63.7 -14.5
Coal/coke Coal 0.0 0.0 X* N/A N/A
Petroleum coke and coke from catalytic cracking 0.7 0.3 X* N/A N/A
Total, coal/coke 0.7 0.3 X* N/A N/A
RPP** (incl. propane) Heavy fuel oil 5.0 1.8 X* N/A N/A
Middle distillates 1.2 0.4 X* N/A N/A
Propane 0.3 0.1 X* N/A N/A
Total, RPP (incl. propane) 6.5 2.3 X* N/A N/A
Steam Steam 21.3 7.7 19.5 8.2 -8.3
Wood Wood 0.0 0.0 X* N/A N/A
Total, undisclosed values 0.0 0.0 1.9 0.8 N/A
Total 277.5 100.0 238.1 100.0 -14.2

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

Table 12. Chemical Manufacturing subsector’s energy use by energy source,
2008 and 2009

Energy category Energy source 2008 energy 2009 energy Growth, 2008—2009
    (PJ) (%) (PJ) (%) (%)
Electricity Electricity 75.0 29.2 65.1 27.3 -13.3
Natural gas Natural gas 154.5 60.1 151.6 63.7 -1.9
Coal/coke Coal X* N/A X* N/A N/A
Petroleum coke and coke from catalytic cracking X* N/A X* N/A N/A
Total, coal/coke X* N/A X* N/A N/A
RPP** (incl. propane) Heavy fuel oil X* N/A X* N/A N/A
Middle distillates X* N/A X* N/A N/A
Propane X* N/A X* N/A N/A
Total, RPP (incl. propane) X* N/A X* N/A N/A
Steam Steam 24.7 9.6 19.5 8.2 -21.0
Wood Wood 0.0 0.0 X* N/A N/A
Total, undisclosed values 2.7 1.0 1.9 0.8 N/A
Total 257.0 100.0 238.1 100.0 -7.3

Note: Due to rounding, the numbers in the table may not add up.
*Undisclosed value for confidentiality reasons
**RPP = refined petroleum products

19 For a list of the 21 subsectors, see Appendix B, North American Industry Classification System.
20 N.I. Sax and R.J. Lewis, Hawley’s Condensed Chemical Dictionary, 15th Edition (ISBN 978-0-471-76865-4)
21 The provisions of the American Reinvestment and Recovery Act of 2009 (the ARRA) explicitly limited foreign companies’ access to the estimated US$275 billion in procurement funds contained in the US$787-billion stimulus package. As a result, ARRA-financed procurement at the state and local levels for iron, steel and manufactured products was effectively closed to Canadian bidders. House of Commons Canada, Canada-United States Agreement on Government Procurement, Report of the Standing Committee on International Trade, May 2010, publications.gc.ca/collections/collection_2011/parl/XC75-403-1-1-01-eng.pdf.
22 The data for 1995 and 1996 were not available for all industries.
23 Due to data limitations for some industries, five- and six-digit NAICS codes are presented.
24 The Iron and Steel Mills industry experienced a significant decrease (44 percent) in GDP from 2008 to 2009, due largely to the United States’ statute requiring recipients of stimulus money to buy American iron and steel only. Indeed, exports to the United States (the largest market for these products) from this industry decreased 46.7 percent between 2008 and 2009. (Source: Industry Canada, Trade Data Online, strategis.ic.gc.ca/tdo.)
25 John Nyboer and Adam Baylin-Stern, A Review of Energy Consumption and Related Data – Canadian Aluminum Industries, 1990 to 2008, page 2. Canadian Industrial Energy End-Use Data and Analysis Centre, 2010.
26 For a detailed description of the 18 industries that comprise this subsector, refer to North American Industry Classification System (NAICS – Canada) 2007, section NAICS 325 (the industries have five-digit numbers), Statistics Canada, www.statcan.gc.ca/pub/12-501-x/12-501-x2007001-eng.pdf.
27 Refer to Figure 7 in this report.

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