The subject is fundamental. It should be at the heart of a CAQ strategy to increase our wealth and decarbonize the economy. And it absolutely must be discussed at the next energy summit.
What am I talking about ? From our energy bulimia, in individuals as in industry.
Why fundamental? Because it is here that energy creates the least wealth in the industrialized world. And because this energy, which creates little wealth and which we waste, is responsible for 70% of our greenhouse gases (GHG).
The Energy Sector Management Chair paints a good portrait of this obesity in its State of energy in Quebec, published on Monday. To convince us of this, researchers Pierre-Olivier Pineau and Johanne Whitmore compare countries according to the wealth they manage to create for the same unit of energy.
This is called energy productivity, or gross domestic product (GDP) divided by the amount of energy used (hydroelectricity, gasoline, natural gas, etc.), measured in gigajoules.
In this regard, Canada is the least productive of the large rich countries on the planet. It creates US$208 of wealth per gigajoule of energy, far behind Switzerland ($796), Germany ($442) or even the United States ($314), which we imagine wasting much more energy.
Quebec is slightly more productive than the Canadian average (5% more). But if it were a country, Quebec would be next to last for its energy productivity, ahead of Canada and behind Finland ($244) and Saudi Arabia ($241).
Yes, Canada and Quebec have great energy resources, like Saudi Arabia, which has long encouraged them to over-consume. And yes, it is cold here. But Norway, such a cold country, also has a lot of energy, which does not prevent it from having a much better energy productivity than ours, which is US$379 per gigajoule.
Some might say that our bulimia is due to our industrial structure, based on the exploitation of resources, but this is only partly true. All of our industrial sectors create less wealth per gigajoule than the measured global average (51 countries), according to the Chair.
In the wood products sector, for example, one gigajoule produces US$140 of wealth, compared to a global average of US$510. In the construction industry, one gigajoule produces $1120 in wealth in Canada, well below the average of $3130.
The base metals sector, in which our smelters are located, is the least productive of the lot: a meager $20 per gigajoule, compared to a global average of $150.
Obese, I tell you.
“It is very worrying. If we want to create wealth, as Pierre Fitzgibbon wishes, we will have to increase this productivity,” said Mr. Pineau, Director of the Chair.
Spread your fingers on the graph to view it in full screen mode.
Precisely, the new Minister of Energy, Pierre Fitzgibbon, was present by videoconference at the presentation of theenergy state, financed in particular by the Quebec government. And in his speech, he said he took note of our industrial shortcomings in energy productivity.
Mr. Fitzgibbon reiterated that he wanted to award energy contracts to projects based on their contribution to the fight against climate change and their creation of wealth. The problem is that to talk about wealth, the minister uses labor productivity in public rather than the one that matters for decarbonization, namely energy productivity.
For example, he repeats that aluminum smelters are more productive, creating $173 of wealth per hour worked compared to an average of $55 for other industries, without taking into account that they have one of the lowest energy productivity among industries.
In its analysis, the Chair takes the example of Germany. There, 5,498 companies have certification to the international energy standard (ISO 50001), compared to only 22 in Canada. These certified German companies may qualify for significant tax relief, and the rest must undergo an energy audit every four years.
Quebec is not there yet. The Chair nevertheless emphasizes that in its energy transition master plan, Quebec is committed, from 2023, to “making the ISO 50001 standard mandatory for large energy consumers who wish to participate in financial assistance programs”. It’s a good first step.
And in his opening speech, Pierre Fitzgibbon said he wanted to use the significant thermal discharges from companies to heat our buildings, in addition to reviewing the tariff structure to encourage decarbonization.
“The objective is not to increase the bills of Quebecers and businesses, but to encourage them to use our electricity optimally,” said Mr. Fitzgibbon, who wants to table a bill in next fall, after a consultation on energy issues over the next few months.
We’ll see what comes out of it. But I’m skeptical. Will Quebec succeed in increasing its energy productivity without increasing electricity rates and thus encouraging Quebecers not to over-consume our energy? Or will we prefer, rather, to do more energy projects than necessary?