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4.4 Industrial

Over the 1990 to 2004 period, net industrial energy use increased by 560 PJ (21 percent) resulting primarily from a 40 percent increase in activity (a mix of GDP, gross output & production units). Activity increased in all years with the exception of 1990-1993 and 2001 during which industry experienced an economic downturn (Exhibit 4.10)

Structural changes, particularly a relative decrease in the share of energy intensive industries, contributed to offsetting the activity-induced increase in energy consumption; industries with energy intensities of greater than six MJ per dollar GDP (pulp & paper, petroleum refining and upstream mining) represented 42 percent of industrial activity in 1990 but only 34 percent in 2004.

Exhibit 4.10: Annual Changes in Industrial Energy Use Due to Activity, Structure & Energy Efficiency

This line graph uses three lines to show annual changes in industrial energy use due to activity, structure and energy efficiency, respectively, for the period 1990 to 2004. It includes a fourth line that shows the total change in industrial energy use. The graph shows that total energy use increased by 21 per cent during this time period. Increased activity was the driving force behind higher energy consumption, while structural changes and energy efficiency contributed to offsetting this increase.

Exhibit 4.11 shows the breakdown for selected industries. In the sector as a whole, increases in energy efficiency (12 percent) resulted in avoided energy consumption of 314 PJ in 2004; however, since 2001 energy efficiency gains have been moderated by increases in the energy intensities of industries such as upstream mining, forestry and fertilizer. In addition, EE has decreased in some industries due to lower capacity utilization -- plants tend to be most efficient when run near capacity -- and a shift towards lower quality input fuels such as biomass.22 Energy intensity in terms of MJ/$ (1997) has decreased about 17 percent (at this level of analysis, activity is only captured in terms of dollars of GDP).

Exhibit 4.11: Sectoral Shares of 2004 Total Industry Energy Consumption (3277 PJ) and Changes in Industry Energy Consumption and Intensity, 1990-200423

This figure includes a pie chart and a bar graph. The pie chart shows the sectoral shares of total industrial energy consumption for the year 2004. It shows that pulp and paper accounted for 26 per cent of energy use, upstream mining for 16 per cent, metals refining and production for 15 per cent, petroleum refining for ten per cent, petrochemical and chemical for six per cent, other manufacturing for six per cent, mining for three per cent, cement industry for two per cent, and other for 15 per cent. The bar graph shows change in consumption and change in energy intensity for each of these sectors. The graph shows a decrease in energy intensity for all sectors over the period 1990 to 2004 except for upstream mining, for which energy intensity increased by 56 per cent. Consumption increased to varying degrees for all sectors, aside from petrochemical and chemical industries, where it decreased by nine percent, and mining, where it decreased by 15 per cent. The largest increase in consu

The largest increase in energy use by far was in the upstream mining sub-sector. The majority of energy associated with this sub-sector is consumed by the primary energy production industries (oil and gas, oil sands, and coal). The Upstream Mining sub-sector consumed 522 PJ of energy in 2004, representing an overall growth of 148 percent since 1990. Energy intensity in terms of GJ/$GDP (1997) increased 56 percent over the 1990 to 2004 period, largely offsetting efficiency gains achieved elsewhere in the industrial sector. Both the growth in activity and the increase in intensity are attributable in large part to the growth in the oil sands industry and a consequent shift towards more energy-intense production.

Oil sands production increased 95 percent from 1990 to 2001 with a corresponding increase in energy consumption of 56 percent (2001 consumption of 207 PJ). Although the energy intensity of oil sands production itself decreased by 20 percent overall from 1990 to 2001 (8.9 GJ/m3), its greater share of upstream production led to the overall increase for the sub-sector.24

4.5 Transportation

Between 1990 and 2004 transportation energy consumption increased 552 PJ (Exhibit 4.12) or 29 percent resulting primarily from increased activity in both the passenger (passenger kilometres travelled increased 31 percent, 195 PJ) and freight (tonne kilometres travelled increased 51 percent, 350 PJ) sectors; increases in aviation activity accounted for another 90 PJ. During this period, overall transportation fleet efficiency is estimated to have improved 17 percent resulting in 315 PJ saved in 2004.25 Structural changes offset almost two thirds of these gains. Passenger transportation (excluding non-commercial aviation) energy intensity (MJ/passenger-kilometre travelled) decreased ten percent over this period while freight transportation energy intensity (MJ/tonne-kilometre travelled) decreased only 0.2 percent.

Exhibit 4.12: Annual Changes in Transportation Energy Use Due to Activity, Structure & Energy Efficiency

This line graph uses three lines to show annual changes in transportation energy use due to activity, structure and energy efficiency, respectively, for the period 1990 to 2004. It includes a fourth line that shows the total changes in transportation energy use. The graph shows that over this time period, transportation energy use increased by 29 per cent, due primarily to increased activity in this sector and, to a lesser extent, structural changes. Energy efficiency is shown to have improved by 17 per cent during this time.

4.5.1 Passenger Transportation26 

Exhibit 4.13 provides a breakdown of energy use by mode.

Exhibit 4.13: Mode Shares of 2004 Total Passenger Transportation Energy Consumption (1334 PJ) and Changes in Passenger Transportation Energy Consumption and Intensity, 1990-2004

This figure includes a pie chart and a bar graph. The pie chart shows the mode shares of total passenger transportation-related energy consumption for 2004. Light trucks accounted for 31 per cent of the total, small cars for 24 per cent, large cars for 23 per cent, air for 18 per cent, urban transit for two per cent, school buses for one per cent, inter-city buses for 0.5 per cent, rail for 0.2 per cent, and motorcycles for 0.2 per cent. The bar graph shows changes in energy consumption and energy intensity for each mode of transportation during the period 1990 to 2004. Consumption decreased for inter-city buses by 33 per cent, passenger rail by 40 per cent, and large cars by 15 per cent. Consumption increased for light trucks by 86 per cent, small cars by one per cent, total light passenger vehicles by 16 per cent, and aviation by 44 per cent. Consumption by urban transit was unchanged. Energy intensity decreased for all modes except for urban transit, which showed an increase of two

Growth in population, increasing automobile ownership and travel by individual Canadians are leading to higher and higher levels of passenger transportation activity. Personal automobile trips are also generally becoming more complex and are occurring increasingly during non-peak hours. The number of private households is growing faster than population, fuelling new housing starts, characterized primarily by greenfield growth at urban perimeters.27,28 These trends are playing a defining role in setting the base level of transportation energy consumption now and for the next 30 to 50 years.29

The overall 10 percent improvement in passenger transportation energy intensity achieved between 1990 and 2004 (Exhibit 4.13) predominantly occurred before 1995 (90 percent). Reductions in energy intensity were non-existent between 1995 and 2001 and have progressed since 2001 by only one percent. The estimated passenger fleet efficiency gains of 14 percent (161 PJ) responsible for the reductions in intensity were partially offset (42 PJ) by structural changes related to light duty vehicle market composition (shift from automobiles to vans, sport-utility vehicles and light-duty trucks). Gains in technical efficiency have also been offset by increases in engine horsepower.

Nationally, urban transit ridership declined over the 1990-1996 period and only returned to 1990 levels in 2004.30 Low ridership levels contribute to the relatively high energy intensity currently exhibited by urban transit, which is comparable to small cars.

4.5.2 Freight Transportation 

Exhibit 4.14 provides a breakdown of energy use by mode.

Exhibit 4.14: Mode Shares of 2004 Total Freight Transportation Energy Consumption (1035 PJ) and Changes in Freight Transportation Energy Consumption and Intensity, 1990-2004

This figure includes a pie chart and a bar graph. The pie chart shows mode shares of total freight transportation-related energy consumption for the year 2004. It shows that heavy trucks accounted for 49 per cent of the total, light trucks for 17 per cent, medium trucks for 14 per cent, marine for 11 per cent, rail for seven per cent and air for 1.5 per cent. The bar graph shows changes in energy consumption and energy intensity for each mode. Consumption increased for all modes between 1990 and 2004, with the exception of rail for which consumption decreased by 15 per cent. The largest increases in consumption are seen for aviation (114 per cent) and heavy trucks (108 per cent). Energy intensity decreased for all modes except aviation, whose intensity increased by 21 per cent. Intensity decreased by 34 per cent for rail, 24 per cent for total truck transportation, 22 per cent for marine, 19 per cent for heavy trucks, eight per cent for light trucks, and six per cent for medium trucks.

Freight transportation energy consumption increased by 350 PJ between 1990 and 2004 (51 percent) driven primarily by an increase in activity, but also by changes in structure. Activity increased over all modes, however, most notably for heavy trucking, light trucking and air freight. Although air freight energy consumption has doubled and air freight has high projected growth rates, it remains a small portion (less than two percent) of the freight transportation energy consumption. The continued dominance of just-in-time delivery models is contributing to the substantial increase in trucking. Overall, it is estimated that freight fleet efficiency increased 22 percent driving energy savings of 154 PJ in 2004. The majority of efficiency gains were achieved in heavy trucking although marine and rail contributed substantially. It is worth noting that all modes except aviation experienced a substantial decrease in energy intensity. However, for the freight sub-sector as a whole, this improvement was offset by the substantially increased share of the more energy-intensive modes, especially trucking.

More than half of the trucks on Canadian roads undertaking inter-city trips are half or less than half full.31 Fuel efficiency measured in terms of litres per 100 tonne-kilometres is substantially lower for trucks with low load factors (Exhibit 4.15). Trucking within urban regions is characterized by frequent trips that also have low load factors .32

Exhibit 4.15: Variation of Fuel Use per Unit Payload with Load Factor for a Tractor and Semi-Trailer in Long-Haul Traffic33

This line graph shows the variation of fuel use per unit payload with load factor for a tractor and semi-trailer in long-haul traffic. The graph shows that fuel efficiency in terms of litres per 100 tonne-kilometres decreases with the load factor. Two points on the graph illustrate that a truck that is one quarter full uses 8.4 litres of fuel per 100 tonne-kilometres while a truck that is three quarters full uses 3.2 litres of fuel per 100 tonne-kilometres.

4.6 Electricity Generation34

Energy consumption for electricity generation increased 901 PJ (30 percent) from 1990 to 2004 (Exhibit 4.16). This increase was primarily driven by increased demand; however, structural changes including a decrease in the overall share of hydroelectricity and an increase in coal and natural gas electricity generation, contributed as well. Overall, efficiency of electricity generation decreased by two percent as of 2004 (52 PJ). This is a recent (2003) reversal of historical trends due in part to low water levels in 2003 and the subsequent use of older low-efficiency fossil fuel generating capacity, and in part to more frequent start-stop cycles for coal-fired and other peaking plants in 2004.

Exhibit 4.16: Annual Changes in Electricity Generation Energy Use Due to Activity, Structure & Energy Efficiency

This line graph uses three lines to show annual changes in electricity generation energy use due to activity, structure, and energy efficiency, respectively, for the period 1990 to 2004. It includes a fourth line showing the total change in energy use from electricity generation during this time period. The graph shows that total energy use for this sector increased by 30 per cent during the time period shown, and that this increase was largely due to increased activity, as well as by structural changes. Energy efficiency for electricity generation is shown to have decreased by two percent during the period 1990 to 2004.

4.7 Observations

A brief summary of the highlights for 1990 - 2004 follows:

  • The number of occupants per household decreased, but houses became larger and the number and variety of plug loads increased. The largest residential end-uses, space and water heating, became more efficient due to increased penetration of better equipment. Large appliances also became substantially more efficient.
  • While there have been large efficiency gains in commercial lighting, auxiliary motors and office equipment, there appears to be a recent marked decrease in the efficiency of space cooling and water heating, for which there is no obvious explanation. Commercial (and residential) cooling loads are increasing rapidly and having an increasingly large impact on peak summer loads in some jurisdiction.
  • Outside of the upstream fossil fuel production sector, overall output growth of 40% in industry was accompanied by structural shifts to less energy-intensive industries and by substantial efficiency gains within industries such as metal mining, chemicals, petroleum refining and 'other manufacturing'.
  • Oil sands production grew so much over the period that its inherently higher energy intensity swamped all other effects within the upstream fossil fuel sector. Nevertheless the EE of oil sands production improved significantly over the period.
  • Passenger transportation demand grew by 31%; truck freight movement by road by over 50%. Relatively modest gains in auto/light truck vehicle efficiency occurred primarily before 1995. Urban transit ridership dipped and then rose, ending up unchanged from 1990. All freight modes, except for the relatively minor air freight mode, became more efficient.
  • A slight increase in thermal generation's share of electricity production contributed to a small decline in the EE of electricity generation. However, the share varies from year to year with stream-flow conditions.

Overall, there is a mixed picture of progress in EE over the 15-year period. There have been substantial EE improvements in appliances, lighting, home heating and a number of resource and manufacturing industries. However, efficiency improvements are failing to keep pace with activity growth and changes in structure, particularly in the commercial and transportation sectors, and the upstream mining sub-sector.

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Date Modified: 2008-12-01

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