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The technology assessment analyzes priority needs that were identified as having the potential to reduce environmental impacts and contribute to the emission reduction goals as described in the vision. While there are numerous emerging technologies that may contribute to the reduction of GHG and CAC emissions from downstream natural gas, only the priority technologies identified using the criteria in the STAR™ process are considered below.

Identified technical needs (Section 7.1) were not always specific to a particular subsector. For example, natural gas storage was identified as a need for both remote industry and remote power generation, as well as part of the required infrastructure within transportation. These cross-cutting technical needs can be divided into two categories:

1. Multiple applications of a single technology: these are technologies that can be applied to multiple sub-sectors. Examples within the technical needs include:

• Natural gas storage.

• Smart energy meters/system components and data management solutions for buildings. • Heat pumps for larger buildings.

These technical needs have been ranked individually within each category that emission reductions could potentially be significant. Of note, is that natural gas storage is only ranked in transportation due to data constraints in remote industry and a lower emission reduction potential (remote heating and power generation for communities is a minor source of emissions in Canada).

2. Common technical needs with potentially differing technology solutions: these are needs where there may be differences between the technologies geared towards each subsector. The primary example of this is CHP, where the specific technical needs in the residential, commercial and industrial sectors may require differing technology solutions.

The main driver for technology development in the residential sector was considered to be cost. There are a suite of high-efficiency technologies currently available on the market, but many have initial costs that are not competitive in a marketplace where initial cost governs market adoption.

Micro-CHP units are units sized for a single-family home, in the range of 1.5 kW. The simultaneous generation of heat and power from natural gas combustion reduces emissions compared to conventional separate heat and power generation in regions of the country with higher grid emission factors (>0.2 t-CO 2e /MWh* ).

The purpose of technical innovation in this area will be to lower capital costs of these systems so that they become competitive in the marketplace, and can include innovations to lower the cost of electrical interconnections and net electric metering. Additional costs associated with ‘island mode’operable systems may be reduced through innovations in black start systems, switchgear and controls. Uptake of this technology and hence environmental impact are expected to be limited given the stage of development and barriers to adoption in the marketplace.

The next generation of ultra-high efficiency water heaters are expected to lower capital cost while improving user experience, integrate with low-flow appliances and meet footprint requirements. Technologies in this category could include for example: low-cost tankless heaters; condensing tank and tankless water heaters; gas-fired pool heaters, heat pumps; and units that integrate space and water heating. They are considered to be close to market with few barriers to implementation.

Heat pumps are an opportunity to increase the efficiency of space heating significantly by surmounting the efficiency barrier of using the energy from combusting natural gas directly for heat. The need focuses on heat pump technologies for larger applications, such as apartment buildings. There is an opportunity both to adapt existing technology to the Canadian climate and to improve efficiencies (e.g. heat transfer materials).

This broad need covers measurement and control, most likely to be used in larger multi-unit buildings. There is both a technology need as well as a data management need through the advancement of economical unit-focused or appliance-focused NG meters and smart algorithms for more readily measurable quantities and control. Measurement and control would be accomplished with a view to integration with building diagnostic systems. This need is focused primarily on NG meters and not on thermal meters.

* This number is indicative and is highly dependent on the overall efficiency and the heat-to-power ratio of the CHP system

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Page 41 - SD_NG_BC