Bioenergy for Community Energy Security in Canada: Challenges in the Business Ecosystem

Bioenergy represents a viable renewable alternative for the many off-grid remote communities in Northern Canada that rely on diesel-based energy infrastructure. Despite the abundance of forest-based biomass, bioenergy for heat and power in Canada is used primarily in industrial contexts. Community-scale bioenergy, although growing, has been limited. Supply chain challenges, institutional and policy arrangements, and community perspectives indicate a need to better understand the 'business ecosystem' for bioenergy in Canada. The ecosystem includes technologies, community contexts, suppliers, developers, and policy makers. In this study, we explore the bioenergy business ecosystem challenges and perspectives from supply-side stakeholders. Interviews were conducted with representatives from the government, industry, and community-all working in bioenergy. The results indicate the following challenges facing the bioenergy ecosystem, with respect to community energy security: lack of cross-jurisdictional consistency in legislation and policies across Canada, structural issues such as subsidized energy and utility ownership, and misdirected support for local capacity building in the bioenergy sector. We also find that the existing support systems are prone to misuse, pointing to efficiency gaps in investment flows. The insights that emerge from this work, especially from industry stakeholders, are meaningful for communities and policy makers alike.