Biomass Projects
Standard Offer Program for Biomass Energy
Quick Facts for Biomass Energy Projects
SOP price paid 11.08 cent/kWh
Inflation Index 20% of the price increases by the CPI
On-peak rate 3.52 cent/kWh (must be 80%)
Capital Cost (est) $2,400 to $6,200 per kW installed
Average lead time 2 years
Environmental None for <5 MW
Environmental screening for ¡Ý MW
Other permits Municipal permits
Official plans and zoning by-laws
Connection OEB License
LDC Connection Agreement
ESA Certification
Resource Proximity to renewable biomass
Industry Association Canadian Bioenergy Association (CANBIO)
www.canbio.ca

Canadian Biogas Association
www.biogas.ca

Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
www.omafra.gov.on.ca

The following information covers items that are specific to Wind Energy Projects. For a detailed, general overview of the Standard Offer Program for Renewable Energy projects please follow this link.



Initial resource assessment: Assessing the suitability of biomass material for an AD operation and ensuring reliability of supply should be addressed and resolved before other considerations.

For example, there may be a need to optimize the “recipe” to generate sufficient biogas to make the economics work, which may involve bringing in materials from an outside source.

You should also ensure that access to the resource does not involve an onerous process – it can be difficult and costly to transport waste material from one site to another.

Consulting neighbours: A comprehensive and inclusive public consultation process with the local community and especially close neighbours is especially important for proposed AD projects.

The physical facilities including fuel and digestate storage and handling equipment are large, and the biogas produced by the process is explosive – all factors that can cause concern for neighbours and local communities.

Securing financial resources: Most AD projects will be added on to existing farming operations. In our case studies, most developers have relied on conventional borrowing from a bank or other lending institution based. They were able to justify the investment based on energy cost reductions and the additional revenue stream from the sale of electricity to the power grid.

In some cases, regional cooperatives have been formed in which farmers pool their resources and share revenues. The Community Power Guidebook published by the Ontario Sustainable Energy Association explains the financial model for a community-based cooperative venture.

A copy of the Guidebook is available free to OSEA full member, $29.50 for associate members, and $44.50 for non-members.

Environmental assessments and screenings: Some electricity generation projects are subject to environmental assessments or environmental screening processes governed by the Ontario Ministry of the Environment.

  • Biomass generation projects less than 5 MW do not require environmental screening
  • Biomass generation projects greater than 5 MW require environmental screening

For more information on the Environmental Assessment and Environmental Screening processes, developers are advised to read the Guide to Environmental Assessment Requirements for Electricity Projects (pages 9-10), and to contact the Ministry of the Environment.

Detailed project design and construction: Every AD project is unique. You should consider hiring qualified contractors to build the facility and install the electricity-generation technology.

Related Links
http://www.omafra.gov.on.ca/english/engineer/energy.html#ad
Minister of Agriculture, Food and Rural Affairs – fact sheet on farm-based biomass.
http://www.mnr.gov.on.ca/MNR/renewable/biomass.html
Ontario Ministry of Natural Resources – Renewable Energy
http://www.canbio.ca
CanBIO works to promote industry and public support for increasing awareness, development and use of renewable, sustainable and environmentally-responsible biomass energy.
http://www.canren.gc.ca/energy_sol/index.asp?CaID=2
CanREN website discusses various options for biomass energy.
http://www.ontario-sea.org/
OSEA has several publications available for download on renewable energy for individual, municipal and community-based projects.