Canada

Canada to Build Industrial CO2 Emissions Recycling Facility

The National Research Council of Canada (NRC) announced that it is making an investment into a project to build a facility in Alberta that will be capable of recycling industrial CO2 emissions into valuable biofuels.

Rendering of algal biorefinery

Rendering of algal biorefinery (photo – nrc-cnrc.gc.ca)

The $19 million Algal Carbon Conversion (ACC) Project will be a pilot program which NRC will be undertaking in partnership with Pond Biofuels and Canadian Natural Resources Limited.

The Honorable Gary T. Goodyear, Minister of State for Science and Technology, said that the Canadian government is pleased to partner with the private sector for this initiative that combines sustainability and profitability, and will ultimately be beneficial for both the environment and the economy.

The pilot project’s main aim is to test whether this concept of converting industrial CO2 emissions into biofuels is feasible and viable. If so, it can then be used as a model for setting up Co2 recycling plants all over Canada.

The technology seeks to imitate nature by incorporating the CO2 into algal biomass through photosynthesis, following which the algal biomass can be converted into oil, animal feed and soil amendment products, among other things.

Another advantage of this process is that it will put industrial byproducts such as wastewater and heat to good use for cultivating algae in photobioreactors. The use of enclosed photobioreactors also ensures that arable land does not have to set aside for algae farms.

It’s fitting that this pilot algal biorefinery will divert CO2 emissions from the Canadian oil sands, and make the environment cleaner while producing more oil. The pilot project will be located at Canadian Natural’s Primrose South oil sands site, which is near Bonnyville, Alberta.

Steve Laut, President of Canadian Natural, said they were pleased to partner with the NRC and Pond Biofuels in this project that will reduce their carbon footprint.

Apart from Canadian Natural, the ACC program has roped in many participants including companies classified as large final emitters (LFEs). The initiative is estimated to ultimately lead to the setup of enough algal biorefineries to divert and convert 20 percent of the CO2 emissions of all Canadian LFEs by 2060.

Steven Martin, CEO of Pond Biofuels, said they were very excited about the partnership with NRC and Canadian Natural, and noted that it would establish Canada’s status as a leader in the carbon capture and recycling field.

NRC is the Government of Canada’s foremost R&D agency, and provides private industry with access to strategic R&D, technical assistance and specialized scientific infrastructure.

WTO Ruling on Ontario Incentives Endangers Thousands of Green Jobs

Thousands of jobs in the renewable energy sector in Ontario are in danger after Canada lost an appeal in the World Trade Organization (WTO) over incentives being offered to boost local renewable energy manufacturers.

Ontario Green Energy Ac

Ontario Green Energy Act (photo – energy.gov.on.ca)

The matter at the core of the dispute is the domestic content requirement of the Feed-in Tariff (FIT) program launched in 2009 as a part of Ontario’s Green Energy Act (GEA) to encourage renewable energy technology development.

FIT allows renewable energy producers to sell the power they produce from wind, solar and other renewable sources to the Ontario Power Authority.

In order to be eligible to sell power under the FIT program, at least 50 percent of the labor and goods for wind power projects over 10 KW must be sourced from Ontario. The requirement for solar producers is 60 percent.

Japan and the EU filed a complaint with the WTO against this program, claiming that it amounted to less favorable treatment of imported equipment, and was a prohibited subsidy for local manufacturers. The WTO panel issued its ruling in Dec 2012.

They agreed with some of the allegations, but dismissed the subsidy complaint. Canada appealed against the ruling in Feb 2013, and the appellate body has now ruled against Canada.

Ontario will have to modify the FIT program to make it conform with the Trade-Related Investment Measures (TRIMs) agreement. If not, Japan and the EU would get the right to impose duties on imports from Ontario.

Ken Neumann, United Steelworkers National Director for Canada, said the WTO ruling was yet another attempt to override sovereignty and the freedom for implementing economic development and environmental initiatives. Neumann added that unelected bodies should not be allowed to wipe out initiatives that were good for the economy as well as the environment.

The FIT program was estimated to have the potential to create 50,000 jobs in Ontario. A two-year review of the FIT program released last year showed the program had approved more than 2,500 projects, attracting $27 billion in private investments which led to creation of 20,000 jobs.

It’s hard to say how many more jobs will be created if there is no requirement forcing energy producers to use local labor and goods, but it will surely be less than the earlier estimates.

Even more worrying is the fact that this WTO ruling opens the gate for more such challenges to other renewable energy production incentives that are available all over North America, and their withdrawal may lead to massive job losses in an industry which is already struggling to stay afloat.

Tennessee, Mexico, Canada in Consideration for Nissan Infinity Production

Nissan Motor Co. is planning to add capacity for production of 100,000 Infinity brand vehicles in a North American plant.

First Infinity-JX manufactured in Smyrna, TN

First Infinity-JX manufactured in Smyrna, TN (photo – Infiniti USA)

Johan de Nysschen, president of Infiniti Motor Co, is scheduled to meet with Christian Paradis, Minister of Industry for Canada.

Nysschen told WSJ that it would be an exploratory talk, while the Minister’s office said he would be making a push for investment by highlighting Canada’s skilled labor, business-friendly taxation and infrastructure.

Nysschen also said that existing Nissan plants in Mexico and Smyrna, Tennessee would be considered.

If Nissan decides to go with a new plant in Canada, they will have to invest about $2 billion. If they choose Smyrna or the Mexican plant, the investment required would be half the cost of the new plant.

Either way, localized production of Infinity vehicles in North America will create 2,000 new Nissan jobs in the region, with production scheduled to be underway by 2017.

This plant is part of Nissan’s on-going strategy to expand its geographical manufacturing footprint and localize production regionally. Last year in December, the company announced that it would be adding a compact Infiniti brand to its Sunderland plant in the United Kingdom, with production scheduled to begin in 2015.

That $407 million investment added capacity for production of 60,000 Infiniti vehicles and created 1,000 new jobs in the U.K. Before that, Nissan had announced that the Xiangyang plant in China would get a $315 million investment, with Infiniti production scheduled for 2014.

For North America, the company has a goal of producing 85 percent of all Infiniti and Nissan vehicles locally.

The first 7-passenger 2013 Infiniti JX luxury crossover rolled off the assembly line in Smyrna, TN last year in Feb. At that time, Susan Brennan, vice president for Manufacturing for the Smyrna and Decherd plants, said they were honored to produce the Infiniti JX in Middle Tennessee, and that quality craftsmanship would go into each new Infiniti model rolling off the Smyrna production lines.

Nissan has already spent $2.5 billion on the Smyrna plant, which has a 550,000 annual production capacity, with the Rogue crossover and all-electric Nissan Leaf taking up 300,000 units. Nissan already employs 6,000 workers at the Smyrna plant, and another 1,400 in Decherd, which is a powertrain assembly plant.

Site Selection Worries in Colorado Over Abattis Plant

Vancouver, British Columbia -based Abattis Bioceuticals Corp. announced last week that it plans to set up a plant in Boulder, Colorado to manufacture heath drinks. Specifically, the company will be producing a fermented tea called kombucha laced with cannabidiol (CBD), which is a cannabis product.

Abattis Bioceuticals

Abattis Bioceuticals (photo – abattis.com)

Abattis chose the Boulder location for its plant because of supportive laws and the potential market in Colorado and Washington, both states which have legalized medical marijuana.

The company will not require any construction, and will simply be spending $500,000 to install equipment and 10 employees for fermenting and bottling in a ready-to-use 3,000-4,000 sq ft space.

The capital investment and jobs created by the project would seem to bolster the arguments of Amendment 64 proponents who said legalizing marijuana would provide a boost to Colorado’s economy.

A study had estimated that direct annual marijuana sales would add up to $342 million, resulting in $32 million in additional state tax revenues and another $14 million in local taxes.

However, there’s another side to this debate, and it’s not just about the economic benefits vs. the social perils of legalizing marijuana. Colorado is facing uncertainty in terms of site selection, as regards the impact of legalized marijuana on its workforce.

Amendment 64 offers protection to employers by providing them with discretion to prohibit marijuana usage by employees while at work. But they can legally use it when they are not on the clock.

Brandon Coats, a telephone operator for Dish Network, was fired after he tested positive, even though he was a registered medical marijuana patient who posited he had used it only during off-duty hours. Coats filed a lawsuit against the company, and the case is now making its way through the appeals process.

Until the case is resolved, site selectors will have to consider whether corporate drug testing and enforcement policies have the potential for conflict with the state’s new laws.

Meanwhile, Abattis says kombucha is growing in the Canadian market at 40 percent, and they have similar plans in the U.S., starting with the friendly markets in Colorado and Washington. In states where federal laws get in the way of a cannabis-laced health drink, the company may offer a plain kombucha drink minus the cannabidiol.

If the product takes off in the U.S. market as expected, the company says it may add another 20 jobs in addition to the initial 10 positions being created for the new plant in Colorado.

Canada Deserts UN Desertification Convention

The United Nations Convention to Combat Desertification (UNCCD), established in 1994 after the first Rio Earth summit, is the only global binding agreement which explicitly links development and the environment to sustainable land management.

World Day to Combat Desertification

World Day to Combat Desertification (photo – unccd.int)

Its 195 signatories include all 194 nations of the UN and the EU. This includes Canada for now, but maybe not for long, because the Canadian government has informed the UNCCD they are pulling out of the agreement.

This makes Canada the only nation in the world not to be a part of the UNCCD. The ostensible reason given was that the UNCCD is a “talkfest” which spends only 18 percent of its $15 million budget on programs, while 75 percent is spent on administrative expenses.

This U.S. State Dept audit does indeed show serious funding and human resource problems at the UNCCD.

However, this is the second previously ratified environmental UN agreement which this Canadian government has backed out of. Back in 2011, Canada became the first country to have withdrawn from the Kyoto Protocol after having previously ratified it.

The UNCCD agreement was similarly ratified by Canada in 1995, and has now been withdrawn in 2013.

The Canadian International Development Agency (CIDA) has already paid the UNCCD its 2012 commitment of $350,000, and says it will honor its 2013 commitment of $315,000 since the UNCCD requires a one-year notice if a member wants to withdraw.

Some of the more interesting reactions to Canada’s decision to withdraw from the UNCCD:-

“He’s making us a rogue nation. The North Korea of environmental law.” – Canadian Green Party Leader and MP Elizabeth May.

“We are sorry to see Canada go . . . it is regrettable. We don’t know why it happened, we will dig deeper now.” – UNCCD official in Bonn

“They make Bush look like a treehugger” – former UK diplomat

“Vainglorious nose-thumbing at the international community’s efforts to tame a very present threat to hundreds of millions of the world’s poorest and most desperate people.” – Robert Fowler, former Canadian ambassador to the United Nations.

World Day to Combat Desertification is on June 17, 2013. This year’s theme is drought and water scarcity, and the slogan is “Don’t let our future dry up.”

GM to Invest $250M for CAMI Assembly Plant in Ontario

General Motors Canada announced a $250 million investment in the CAMI Assembly Plant in Ingersoll, Ontario. The investment will be used to convert the CAMI plant into a flexible manufacturing facility to support future vehicle production.

GM Canada

GM Canada (photo – gm.ca)

“Conversion of the CAMI Assembly Plant to a flexible manufacturing facility will provide CAMI with the ability to produce multiple global architectures and body styles,” said Kevin Williams, president and managing director, General Motors of Canada. “Continually improving the flexibility of our manufacturing operations helps us respond quickly to customer needs and market demand.”

Manufacturing flexibility is a key priority for General Motors, and this investment will give CAMI the ability to build a higher variety of differentiated products, on multiple platforms, at much lower costs.

The actual reasoning behind why they needed to do this right now is that GM Canada, which currently produces the Chevrolet Equinox and GMC Terrain, is making a strong push to retain future production of the next generation models of these vehicles, which are expected to be launched in 2015.

GM has reportedly been considering moving assembly of the next generation of these vehicles to cost-effective locations such as Spring Hill, Tennessee or Ramos Arizpe, Mexico.

The effort to retain production of these vehicles has been coordinated with the leadership of the Canadian Auto Workers union, which last month allowed the 2,700 CAMI-GM workers to vote on allowing their local union to reopen their contract seven months before the existing contract expires.

This successful vote allowed GM to bring workers in this plant under the same contract that was signed with the CAW, which includes massive concessions on the existing contract. This in turn paved the way for GM to invest $250 million into the CAMI plant for the flexible manufacturing makeover and once again make it the leading contender to produce the Chevrolet Equinox and GMC Terrain in 2015.

“We have had a strong start to 2013 with customer demand for our newest vehicles driving improved sales,” added Williams, “This is strong confirmation that our investing in manufacturing flexibility, finding ways to bring new products to market faster, is the right strategy.”

General Motors of Canada Limited (GMCL) is headquartered in Oshawa, Ontario, and employs more than 9,000 people across the country.

GE to Invest $26M for Center of Excellence in Peterborough, Ontario

GE and the Canadian Auto Workers (CAW) have reached a collective three-year agreement that includes a significant investment in GE’s Peterborough facility in Ontario to create a North American Center of Excellence (CoE) for large slow speed motors.

National Shipbuilding Procurement Strategy

National Shipbuilding Procurement Strategy (photo – actionplan.gc.ca)

The investment is also part of a strategic expansion that allows GE to compete for shipbuilding contracts under the National Shipbuilding Procurement Strategy and bring more work and jobs to Peterborough.

“GE is committed to building our Peterborough business and continuing our long history as an employer of choice in the Peterborough area,” said Elyse Allan, president and CEO, GE Canada. “We believe this ratified agreement sets the stage for building a competitive operation and a world class Center of Excellence.”

Through a multi-year, multi-phased restructuring program GE will invest in process and capital equipment upgrades to transform the motors facility into a globally competitive operation.

The initial investment will include approximately $21 million for the first phase of restructuring with an additional $5 million investment to support the wind and solar businesses for a total investment of approximately $26 million.

GE anticipates that this investment will enable the company to generate Industrial Regional Benefits (IRB) in support of pending commitments. Canada’s IRB Policy requires that companies undertake business activities in Canada valued at 100 percent of the value of the defense or security contract they have been awarded by the Government of Canada.

This means that GE can now continue to aggressively pursue marine opportunities with the Canadian Government for the National Shipbuilding Procurement Strategy. This is a huge $33 billion procurement contract for 28 vessels for the navy and coast guard.

If GE is successful in landing shipbuilding contracts, Peterborough will be GE’s production facility of choice to meet demand for propulsion motors, generators and other components for these ships, potentially resulting in additional jobs at the facility.

These developments build on a Sept 2009 agreement between GE and the government of Ontario that called for an investment up to $100 million over five years to strengthen the Peterborough facility’s position as a global center of excellence that will pursue new green technologies.

GE Canada has had a presence in Peterborough since 1891. In Canada, GE (NYSE: GE) has operations across the country, including major manufacturing, sales and service locations with 7,000 employees.

Blackberry to Get $10M to Retain 400 Jobs in Nova Scotia, Canada

Nova Scotia Premier Darrell Dexter announced that the province has agreed to invest $2 million annually for the next five years into Blackberry, provided the company retains at least 400 jobs at its facility in Bedford, a Halifax suburb in Nova Scotia, Canada.

Blackberry

Blackberry (photo – ca.blackberry.com)

“BlackBerry has been a solid employer in Nova Scotia for nearly a decade, providing hundreds of good jobs for Nova Scotia families,” said Premier Darrell Dexter. “BlackBerry could have picked another place to bring its jobs and to establish a Center of Excellence, but they feel the energy, enthusiasm and expertise in Nova Scotia.

The Bedford plant currently has more than 400 employees, who would earn almost $120 million over five years. The province stands to gain more than $9 million in estimated direct tax revenue generated by BlackBerry’s $120 million payroll.

Last year, the company (Research in Motion) had announced a global workforce reduction plan, and let go 95 employees in Bedford as part of the downsizing.

With the future of the Waterloo, Ontario-based company and the Bedford plant at stake, Nova Scotia engaged Blackberry to work out a deal that would save the jobs from being eliminated or relocated to Waterloo.

In return for the $2 million per year investment by Nova Scotia, BlackBerry will employ at least 400 people annually with an average salary of at least $60,000.

Blackberry will additionally invest $4 million annually in a new BlackBerry 10 Center of Excellence to be set up to upgrade skills, purchase new equipment, hardware and software to support the new platform, and for research and development.

“BlackBerry is pleased to partner with the province of Nova Scotia to create a Centre of Excellence on the East Coast. These partnerships help to foster innovation and support BlackBerry’s competitiveness on a global scale,” said Andrew MacLeod, BlackBerry managing director for Canada.

Blackberry set up the Bedford facility in Nov 2005. At that time, the province agreed to provide incentives worth a total of $19 million, including $5 million in training funds and another $14 million in performance-based payroll tax rebates.

In return, RIM had agreed to create at least 1,200 jobs over five years. By 2011, the company had only managed to create 540 jobs, and then they started downsizing.

However, Blackberry now seems to be heading in the right track. One day before the $10 million investment announcement by Nova Scotia, the company announced that the launch of the BlackBerry Z10 smartphone was a blockbuster hit in Canada.

“In Canada, yesterday was the best day ever for the first day of a launch of a new BlackBerry smartphone. In fact, it was more than 50 percent better than any other launch day in our history in Canada,” said Thorsten Heins, president and CEO of BlackBerry.

Blackberry (NASDAQ:BBRY) currently has 13,400 employees worldwide. The company generated revenues worth US $ 18.435 billion last year, resulting in net income of US $ 1.164 billion.

Canada Launches The Greenest Workforce Initiative for Forestry Industry

The Government of Canada launched the Greenest Workforce initiative in partnership with the forestry industry to address the skills shortage and connect youth with forestry jobs.

The Greenest Workforce - Canada forestry industry jobs

The Greenest Workforce – Canada forestry industry jobs (photo -fpac.ca)

The Greenest Workforce initiative was unveiled by the Forest Products Association of Canada (FPAC) at the annual PaperWeek Canada conference in Montreal, Quebec.

“The forest products sector is now a future oriented business that is brimming with opportunity. It is now hiring and offering solid careers for those who care about their future, the environment and their quality of life,” said David Lindsay, president and CEO of FPAC, speaking at the event.

The initiative has two components. One is a digital platform – TheGreenestWorkforce.ca, which provides information on career opportunities in Canada’s forestry industry.

As per information provided by FPAC, Canada needs 60,000 additional forest products industry workers by 2020 to help fill a long list of jobs including millwrights, electricians, engineers, sales staff, truck drivers, foresters, chemists and many more.

The second part of the initiative is the Green Dream Internship, a video competition that will award paid internships with forest products companies to eight students across the country. The winners will get a four month paid summer placement at a forest products company, an iPad Mini and a chance to win $5000.

“Our government’s top priorities are job creation, economic growth and long-term prosperity, so it is critical that we match the skills of Canadians, especially younger workers, with the needs of employers,” said the Honourable Diane Finley, Minister of Human Resources and Skills Development. “Through our partnership with the forestry industry, we are helping address their skills shortage by connecting youth with the practical on-the-job experience they need to succeed.”

The Greenest Workforce is partially funded through the Sectoral Initiatives Program. First announced in July 2011, the Sectoral Initiatives Program (SIP) aims to address skills shortages in key sectors of Canada’s economy.

SIP funds national partnership-based projects that support the development and distribution of labor market information aimed at helping Canadians make more informed career and training decisions.

Canada‘s forest products industry is a $57 billion a year industry that represents 12 percent of Canada’s manufacturing GDP. The industry is one of Canada’s largest employers, operating in 200 forest-dependent communities from coast to coast, and directly employing 230,000 Canadians across the country.

Toyota Gets $34M for First Made in Canada Hybrid Model

The governments of Ontario and Canada announced that they are pitching in with $16.9 million each to help Toyota Motor Manufacturing Canada (TMMC) expand its plant in Cambridge, ON to allow for production of the Lexus RX450h hybrid. This will be the first hybrid model to be made in Canada.

Toyota Lexus RX 450h

Toyota Lexus RX 450h (photo – toyota.ca)

The $33.8 million investment will create 400 new jobs and help sustain 7,000 Ontario jobs at Toyota, in addition to thousands more at Toyota’s automotive suppliers across the province.

“The auto industry is a cornerstone of Ontario manufacturing,” said Dalton McGuinty, Premier of Ontario. “Working together, this investment will ensure Ontario remains at the forefront of new technologies so our auto sector can continue providing hundreds of thousands of good, high-paying jobs for generations to come.”

Ontario is providing the funding through its Strategic Jobs and Investment Fund. The automobile sector supports nearly 485,000 jobs across Ontario, and produces more cars than any other place in North America.

“Toyota is an essential part of Ontario’s auto industry, and a big reason why the province continues to be a leader in North America for vehicle assembly,” said Brad Duguid, Ontario Minister of Economic Development and Innovation. “The McGuinty government is delighted to further strengthen our partnership with Toyota and we thank the company for its ongoing confidence in Ontario and its auto workers.”

The Canadian government’s investment is being made through the Automotive Innovation Fund (AIF). Canada had announced earlier this month that the AIF would be renewed with another $250 million over five years (2013-2018), to be used for supporting automotive companies in Canada planning strategic, large-scale research and development projects.

“Our Government is committed to helping Canada’s automotive sector remain globally competitive and prosperous,” said Prime Minister Stephen Harper. “Today’s support will allow Toyota Motor Manufacturing Canada to produce a hybrid version of the Lexus Sport Utility Vehicle in Cambridge, the first hybrid model ever built in Canada. This milestone initiative to build greener more fuel efficient cars will advance Canadian innovation and increase our ability to compete internationally resulting in more high-paying, stable jobs.”

With this investment, Toyota’s Cambridge plant will produce an additional 26,000 Lexus vehicles, of which 15,000 will be hybrids. Production of the RX 450h hybrid is expected to begin in 2014.

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