Review of Enbridge Gas’ Stage 2 Analysis of the Economics of Natural Gas and Electrified Alternatives for Customers in the Ontario Panhandle
This work reviews and remodels Enbridge’s estimates of the savings that would accrue to its customers as a result of using natural gas instead of another fuel. Enbridge Gas did not consider heat pumps as the electric fuel alternative, which are approximately three times more efficient than gas heating. When appropriate adjustments are made to Enbridge’s cost comparison spreadsheets, the 20-year net present value (NPV) from using natural gas fuel instead of the most cost-effective alternative is negative $84 million for the Ontario Panhandle. My own model, which also includes up-front costs, finds that a residential homeowner who chooses electric heat pumps over gas systems for space and water heating can expect to save $6,792 over the equipment’s 15-year lifetime (NPV).
2. Analysis of Alternatives to Natural Gas for New Construction Greenhouses in Ontario
This work provides high-level comments on alternatives to gas for greenhouses. Details and examples of ground-source heat pumps and other low carbon alternatives that have proven viable in Southern Ontario or other similar climates are described. It should be noted that greenhouses are likely to experience increased pressure to reduce their reliance on fossil fuels as our society works to achieve its climate targets. Canada has a goal of becoming net zero emissions by 2050 and many groups are developing climate-friendly food labels. A tomato grown in an Ontario greenhouse is responsible for 3.2 kg of greenhouse gas emissions for every kg of tomato, but a field tomato trucked from Mexico to Canada is responsible for approximately 0.3 kg of emissions. Many new construction greenhouses may choose to use multiple heating sources, seek sources of industrial waste heat and carbon dioxide or to implement energy efficiency measures (e.g. insulated panels, thermal curtains, sealed environment) to reduce total dependence on natural gas and future-proof their businesses against decarbonization pressures and rising fuel prices. In conclusion, there are indeed technically viable alternatives that can replace all or some of the need for natural gas or other fossil fuels in Southern Ontario’s new construction greenhouses and many of these are already in use.