Supporting Renewable Fuel Programs

Heather Eggleston:

One of the really important components that's critical to Canada achieving its net-zero goals is collaboration. And what we're talking about here today is a small but really great example of that. It's academia, the energy industry, the financial industry, and students all coming together to support the common goal of emissions reductions. And I think that's really exciting and really important as well.

Michael Torrance:

Welcome to Sustainability Leaders. I'm Michael Torrance, Chief Sustainability Officer at BMO. In light of Earth Month throughout April, our show will celebrate our planet as we seek to raise environmental awareness at the intersection of the economy and innovation. April 17th marks our fourth annual Trees from Trades program, where BMO Capital Markets will donate a portion of global markets revenue from trades to fund the planting of trees for Earth Month. To date, we have raised enough to plant over 375,000 trees. Happy Earth Month.

Speaker 3:

The views expressed here are those of the participants and not those of Bank of Montreal, its affiliates, or subsidiaries.

Steve Kehoe:

I'm Steve Kehoe, Director of Investment Banking at BMO Capital Markets Energy Transition and Sustainable Services Group. In today's Sustainability Leaders episode, we'll discuss our recent renewable fuel sponsorship program.

Last year, BMO and Imperial Oil donated money to the University of Calgary's Schulich School of Engineering with a broad goal to support renewable fuel development in support of groups such as the Schulich Racing F1, Off-Road Baja, and Renewable Fuels Development. The gift was used by the university to support the development of a project on renewable fuels by the student-led Industrial Design Club in the Department of Chemical and Petroleum Engineering at the Schulich School of Engineering.

Today I'm thrilled to have a very distinguished group to talk about this fantastic program. So first we have Heather Eggleston, Vice President of Low Carbon Solutions Canada for Imperial Oil Limited. Heather has worked for Imperial for over 22 years in a range of positions and was named Vice President of Low Carbon Solutions in August, 2023, in conjunction with the creation of Imperial's Low Carbon Solutions Organization. Next we have Dr. Arin Sen. Dr. Sen is a professor and Head of the Department of Chemical and Petroleum Engineering at the University of Calgary. His research program focuses on the design and optimization of bioprocesses with medical and industrial applications. Next up we have Dr. Jinguang Hu. He's an associate professor and Schulich research chair in the Department of Chemical and Petroleum engineering at the University of Calgary. He leads the biomass and biorefinery research lab at the university and his current research focus is on biomass valorization, sustainable energy, and bio-inspired materials and systems for energy and environmental application.

We have two students from the club with us today also. So Josh Day is a graduating chemical engineering student with a biomedical engineering minor at the University of Calgary. Currently, Co-president of the Industrial Design Club and also started the biodiesel project in this renewable fuels program. Josh has experience in project management, stem cell research, and now thanks to this new program, biodiesel and renewable fuels. On a side note, Josh has lived in Australia, Africa, and Panama as well as Canada. He's passionate about shortening the gap between classroom theory and solving real-world problems for students, which is exactly the type of thing this program aims to do.

And last but definitely not least, we have Amy Houston. Amy has been part of the industrial design club for just over three years now and stepped into the co-president role this year. This is her last year in the chemical engineering program with a minor in biomedical engineering. Outside of school, amy likes to go skiing, hiking, and camping.

So welcome everyone to the podcast. So Dr. Sen and Dr. Hu, let's start with both of you. Can you give our audience a bit of background on the university's effort around renewable fuels and why programs like this are important?

Dr. Arin Sen:

Yeah, thanks Steve. I think maybe I can start that. So the University of Calgary and certainly the Department of Chemical and Petroleum Engineering has maintained a strong relationship with the energy sector for decades, and this department is certainly recognized globally for its contributions to this sector. And as the sector has evolved, work at the university has been in lockstep to support that evolution, and whether it be through the development of new technologies or the training of students, many of whom have gone on to be leaders in their respective areas in the energy sector.

So now we're at a point where we realize the importance of fossil fuels, but also understand that we need to add other sources of energy. And in alignment with that, there are certainly efforts at the university to look at other fuel sources and this definitely includes renewable fuels. So from a training standpoint, for example, renewable fuels forms part of the sustainable energy development program for graduate students at the university. And it's offered jointly by the School of Public Policy, the Haskins School of Business, the Schulich School of Engineering, and the School of Architecture Planning, Landscape, and also the faculty of law.

And then from a research standpoint, we certainly have had a lot of activity in the research area and we have some great researchers. For example, in our department, we have Dr. Hu who's with us here today and maybe can later describe some of what he's doing. And so we are certainly looking to develop technologies that focus on renewable fuels. And in terms of importance, so from a student standpoint, this is a chance for students to take what they learn in class and actually in a hands-on way, in an experiential way, develop a pilot-scale plan. This is not an easy thing to do. And the amount of learning that happens there certainly bolsters their technical understanding what's going on. But beyond that, it provides them with so many opportunities to gain leadership skills, to give them professional skills that'll serve them well in the future.

And support like this is fantastic. As outside of just the opportunities for student, it also serves to showcase to the students as well as the university and the external communities, how we have evolved to align with the needs of the energy sector while also keeping in mind sustainability goals. So I think this is a very, very important program for us.

Steve Kehoe:

That's great, and we're definitely looking forward to hearing from Josh and Amy about their experience with this program so far. Dr. Hu, do you have anything to add to that?

Dr. Jinguang Hu:

Well, just a little bit. So as Dr. Sen mentioned, right now our department has been also heavily involved in renewable energy research. Myself, particular working on the biomass-based energy systems. Beyond this project, we have been also working on the sustainable hydrogen, renewable sustainable biodiesel, and also jet fuel production. In this project, particular provides students with practical experience in developing renewable fuel projects, which I believe is essential for preparing them to navigate the evolving energy landscape. And I think those are instrumental in preparing the next generation of engineer to track all the complexity of the energy transition efficiently. So I think this is awesome opportunity for both students and our academia to be part of this project.

Steve Kehoe:

That's great, thank you. Now Heather, can you give us a brief overview of Imperial and why this initiative was so important for the company to participate in and partner with BMO?

Heather Eggleston:

Sure, thanks so much, Steve. Imperial is really excited for the opportunity to support both University of Calgary and specifically the program students that are exploring innovative new solutions. Innovation is critical for our industry and it's been such an important part of Imperial's history as well. Our company was first created back in 1880, and at that time we were selling waxes and lamp oils. And since then, as you can imagine, we've just been constantly innovating and evolving, whether it was with the emergence of the horseless carriage or the motor vehicle as we call it today, or oil exploration in the west or the development of the oil sands. Without innovation, we wouldn't be here today and without innovation, we won't be here in the future. So the opportunity to support potentially the next generation of our workforce and their passion and innovation just seemed like a perfect fit for us, and we really appreciate BMO, a company that's actually been around even longer than us in Canada with just as much innovation, for bringing this opportunity to our attention.

Steve Kehoe:

Yeah, that's great and thanks for that. So from BMO's perspective, projects like this with a focus on the economics and practicality are very important. As part of our climate ambition, the BMO Climate Institute unites expertise from a spectrum of critical disciplines, capital markets, energy, economics, climate science and policy with the goal to be our client's lead partners in the transition to a low carbon economy. In other words, we take a very holistic view of the energy transition and try to ensure we are helping to build a thriving economy with a sustainable future and an inclusive society. Renewable fuels are a very good example of this. So they're chemically identical to traditional fossil-based hydrocarbon fuels and are considered drop-in fuels. That is, you don't need new engines or new pipeline infrastructure or a new electric grid. Renewable diesel, sustainable aviation fuel, renewable natural gas and e-fuels are all zero carbon and allow us to seamlessly incorporate them into our lives.

So for example, people who have no choice but to drive their old beater cars for years to come, having access to cost-effective drop-in zero carbon renewable gasoline, for example, would be an incredible outcome for them. With Imperial's development of their renewable diesel plant in Strathcona, they're taking a step towards this reality and showing how it can be done. It builds on the track record of energy innovation in Alberta that Heather just spoke about. This goes back well over a hundred years or so. This partnership with the University of Calgary is definitely a natural fit. The purpose is not only to support renewable fuel development, but also to help foster the next generation of energy leadership. The vision is to develop multiple student-led projects that will ideally form the foundation of a more comprehensive research project in renewable fuels. So Dr. Sen, and Dr. Hu, from your perspective, why is this partnership so impactful? Maybe start with Dr. Sen.

Dr. Arin Sen:

I think one of the things I'd mentioned is that it does showcase to the world really, that we as a university... And this is something where we as a department have for a long period of time been leaders in the oil and gas sector, and it shows that while we continue to support that strongly, that we are looking at working with industry to look at these new sources of energy and new sources of fuel. So I think there's that part right there. It shows us as sort of a leading university, not one that's a lagging university.

Beyond that, I think from a student standpoint, this is a hugely impactful program. As professors, we sit in a classroom and we tend to talk to students and we have books and we have a lot of theoretical knowledge that we try to impart to the students, but that only gets you so far. And oftentimes what we do in the classroom is more of an ideal case scenario, whereas when you try and take something and actually implement it, there's many other difficulties that come about. And the only way to kind of understand that is to do it.

So in this case, we have a group of students that have the opportunity to take something that they've heard about in class, to look at the equations that they've learned about in class, and actually try and implement it with some pilot scale equipment. And I think if you do talk to the students, they likely will say that there are challenges beyond what you can tell from a classroom. So the bolstering of their technical understanding is definitely there. But beyond that, just the fact that they as a student group now have to manage a project, they have to manage timelines, manage a budget. They have to order things, they have to communicate with each other, they have sub-teams that need communications. So all of these skills that they gain there are over and above better understanding the technical material. So as a package, I think these experiences will serve to propel these students in their careers and hopefully get them to leadership positions faster than if they do not have these experiences. So I think this is hugely important.

Steve Kehoe:

Great. And Dr. Hu, anything to add to that?

Dr. Jinguang Hu:

Well, my point is similar with Dr. Sen's point. I believe this partnership is highly impactful for several reasons. Firstly, this partnership provides the invaluable financial support that enable our students to engage in some hands-on real world project related with renewable fuels. Such project are essential for students to gain practical experience and develop the skill necessary to tackle the complexity of engineer challenge in the field of renewable energy.

Secondly, I think the collaboration with industry partners like BMO and the Imperial Oil ensures that our students are working on project that are relevant to current industry needs and the trends. This exposure to real industry problem enhance students learning experience and better prepare them for their future careers in the energy sector.

Furthermore, I think this partnership fosters a culture of innovation and the collaboration between academia and the industry. By bringing together expertise from both sectors, they can leverage our combined knowledge and the resources to drive innovation and develop sustainable solutions for the future energy products.

Steve Kehoe:

That's great. Thank you. And maybe Amy and Josh, you could jump in and specifically talk to how this has impacted the group or the club in particular. I think we'd previously talked about maybe you got some more interest from other students after this gift was announced.

Amy Houston:

Yeah, absolutely. That was definitely a huge part of it, being able to foster this exciting environment and be able to get students involved and engaged in a project like this. I think it really speaks to the passion within the chemical engineering department and how many students are willing to put effort and put in that work to get more out of their degree just beyond what comes from a classroom, but also getting that hands-on experience that Dr. Sen was talking about. And really enabling students to expand upon the knowledge, again, that they've learned in class.

And I think this partnership has definitely helped us to go above and beyond and do something that we thought was beyond what was even possible, and being able to start this refinery and this pilot plant and be able to actually see these things firsthand. Like, oh, this is kind of what, for example, a reactor looks like. This is kind of how it can be assembled. These are the parts that go into it. This is how these important aspects work. It's one thing to be like, "Okay, yep, you have to mix this and you have to do this and that in class," but being able to actually see it and be like, "Oh, okay, this is why it's important," And be able to really be there and work in the lab and be able to understand the inner workings of what those theories that we learned in class are so, so important. And it's really helped me to grow a lot within my knowledge.

Josh Day:

Yeah, no, you covered some great points. And yeah, it's been a very cool project to be a part of and being able to create this space where students can apply the theory that they've learned to actual projects and be confronted, if you will, with the realities of modern day projects.

And I think that was, for me when we started this project, that was kind of the big goal is like let's start these projects so students can be confronted with this reality of, "Oh, if we do this, this and this, we have to figure out how to get electrical. We have to figure out safety. We have to figure out, oh, this chemical reaction actually doesn't work at the rate that the theory proposed. So we have to troubleshoot that." It's a project that allows these students to face real-world problems and how to navigate that to develop solutions that, Steve, you were talking about that are economic and feasible.

There's been a lot of times with this project, we're working with younger students and they're like, "Hey, let's do this." And it's got a great idea, but then there's certain things about it. It's like, "Well, that would eat up half the budget if we went about that." So we sit down, we develop some solutions and we cut that cost again. And then this iterative process that you develop those skills to be able to look at a problem or look at a solution and be like, "Okay, this sounds great on paper, but in reality we have to figure out all these different things and maybe we can revamp this to make it more affordable or more feasible." And that's been really cool.

And then for me personally, I've kind of learned how to run my own company. You took an idea from the beginning and then you had to get funding and then you had to communicate with all these different people. You had to work with different teams. We're a club of about 30 people that are actively involved. So there's lots of different pieces that are coming together, and learning how to manage that and schedule and budget. And then how to respond to, "Okay, we did this and we expected this, but it's not what we thought, so let's work together. Let's talk with our supervisor. How do we navigate this? How do we overcome these challenges?" Yeah, so it's like all these different parts that come together. And so it's really integrated our skill set rather than like, okay, we've learned this, we've learned this. It forced you to combine it all into this holistic framework of thinking and operating as an organization. So yeah, that's kind what I would say in terms of its impact and its significance from a student standpoint.

Steve Kehoe:

Great. Those are all really important points. So I think programs like this are a really good way for students to learn how we're going to adapt to the energy transition. So for example, we'll continue to use hydrocarbon fuels, battery electric vehicles as well as solar, wind, and low carbon hydrogen will make its way in. So this is a great way for students to learn how it's an all of the above solution. So I'd just like to turn it over to Heather and maybe speak a bit to Imperial's approach to that and how they're thinking of the energy transition.

Heather Eggleston:

I really liked how you said all of the above, Steve. We actually have a very similar overarching statement that we call the and equation, recognizing that we need to find ways to balance energy security and affordability and taking meaningful steps to support the energy transition. And in the spirit of today's discussion, I'd also add another and in this scenario, which is and supporting the students who make all of this happen.

And this is really the space that I currently work in, which is our low carbon solutions business, which is focused on leveraging our company's unique capabilities to help decarbonize the hard to evade sectors of our economy such as heavy industry, commercial transportation, and power generation. Our mission is to help accelerate the world's path to net-zero and build a compelling new business, which is pretty cool. Our initial focus is bringing carbon capture and storage, low carbon, hydrogen and biofuels to market, making them accessible to these hard to decarbonize industries. And we believe that broader deployment of all three of these will help society with its net-zero goals.

And Imperial is currently constructing a renewable diesel facility that you mentioned earlier at our Strathcona refinery in Edmonton, and we believe that that will help support the reduction of 3 million tons per year of emissions in the Canadian transportation sector. So these technologies and products are going to make a meaningful impact. And the fact that we have students interested in this space is not only really important for Imperial and having a future workforce that's going to be working in the renewable fuel space, but we think it's also really important for society as well.

Steve Kehoe:

Yeah, definitely. And I think it's also important for the students to learn about our traditional energy sources as well as these new energy transition type technologies as well. So I'd like to turn it back to Amy and Josh again, and if you could just speak a bit about your involvement and experience with this program. What are the plans for it in the future? If you're both graduating, how do you see it continuing without you being there?

Josh Day:

Yeah, so I've been involved with the club for about four years now. I started as a production executive, which was just a fancy way of saying a project manager at the time. And I moved up to presidency for about two years and decided to start the biodiesel project with this aim of creating a project where students could actually try solving these renewable or sustainability problems that we're facing and really have to figure out how to navigate all these complications that do come out of it so that we can develop these solutions that are well-thought-out and economically feasible, and not just a band-aid solution, but actually something that integrates within the system that we have.

And so now I transitioned to co-president and Amy has joined us as co-president. She's been awesome, really cool actually seeing Amy become a really incredible leader. But yeah, my involvement has been all over the place. I've put on almost every hat I can think of in the club. So from managing finances to actually getting in and doing engineering work, to talking with sponsors, it's been a very diverse array of experiences and it's definitely helped me bolster my confidence. I'd love to be a part of running a company or starting a company one day, and this experience has let me take all these leadership principles that I've read in books, good to grades or extreme ownership, and apply it here and really test them out and see how they work in a setting where the only motivation you have is students' willingness. You've got no paycheck, you've got no dividend, you've got nothing like that to keep people engaged, you really have to work with students and learn how to motivate them and understand, hey, what's important to students and work with that. So that's been a really great experience.

And yeah, I feel very, I guess the best way of saying it's because of this program, because of in my chemical engineer, I feel very technically competent to be able to move forward and start tackling these problems. I've got tons to learn, but I feel like I've got a really foundational base now. And then for the future, it's really bright for the project, actually. There's a lot of interest from students. The amount of people returning this year is the most we've ever had. And so we're looking at continuing with producing biodiesel, also transitioning to looking at production of renewable natural gas from different waste sources, so potentially compost or even the glycerol that's produced from the biodiesel project. And we're probably going to have two streams going in the club where students are focusing on the biodiesel project and optimizing that and facing the challenges of how do you minimize wastewater production? And then you're going to have students working on fermenting the different waste products to produce renewable natural gas.

And both of these have received a lot of interest from students. It's actually been surprising of getting messages like, "Send me the meeting minutes for today. I can't make it 'cause I've got a final or something, but I really want to follow up on this." And so yeah, it's really optimistic. Students really care about solving these big problems, and that's been a really cool part of this project is these students getting a sense of, "Oh, we can take this on. We have the skills to be able to take this on." And so yeah, it's been a cool environment to be a part of. But the future is quite bright. So maybe I'll pass it off to Amy.

Amy Houston:

Yeah, for sure. So going a little bit into my experience. So yeah, I also started with the club early on, three years ago, so not four years ago like Josh. But I also actually got brought on as the production executive. And it was just kind of when this project was very, very much so in the early phases of, "Okay, what is actually biodiesel and how could we actually produce this?" So it's been so cool and crazy throughout my roles within the club, going from that to a team lead for the pre-processing stream and then going into the co-president role. I've been able to see this project from a lot of different lenses as it's been growing, and it's been super cool and super neat. And I think I've really been able to grow and mature with the project as it's been growing and maturing. And actually able to understand what project management is, how to run teams, and how to get other viewpoints and different students, whether that's them being in chemistry or mechanical engineering or chemical engineering. Really being able to get those different viewpoints, make people come together as a team, and kind help facilitate something that's kind of bigger than all of us into this big project and really understanding that bigger picture.

And I really think we've just been able to create a space that has helped myself and all the students be able to really develop into professional engineers. And I think we're all in a really great place moving forward to be able to take what we've learned here and be able to understand what it's like to work in a multidisciplinary team and be able to, again, get those different viewpoints from everyone and be able to actually feel like we can solve these real world problems that we will be faced with in the future.

And in terms of the future of the club, I definitely agree with Josh. It's super bright. There is so, so many students that are so passionate and engaged in this project more than just us, and I think they're going to do a great job with leading and continuing on. And I honestly do think that this is just the beginning for industrial design club and chemical engineering clubs that can actually be able to solve these real world problems that are related to energy and renewable energy.

Steve Kehoe:

Well, that's great. And maybe I'll give Dr. Sen and Dr. Hu another chance to let us know on anything they've seen specifically with the students and how this has impacted their experience so far.

Dr. Arin Sen:

Sure. I can step in. So one thing I want to point out is that this effort, the students don't need to do this. They don't need to have a club. They can just go to class and they can choose to just pass their exams and go on and graduate and become great engineers. These students are making the effort to do this. This is a co-curricular activity. They've taken a club, which started out with an idea. They had a small space at the end of a bench in a research lab. And it was a difficult time for them, and they work through that and they were able to grow it to what it is today. So I think for me, it showcases how great our students are. I'm really proud of these students. To be able to persevere and to take an idea and see it through to fruition and now have it, it's in such an exciting place right now.

So they were able to build it into that. And in terms of the future of the club, I also see the future of the club as being quite bright. I think we have some junior students that are willing to step into the big shoes that have been left by Josh and Amy. And to Josh and Amy, we are a department that very much values the engagement of people who graduate our alum. So to maintain the continuity, I invite both of you to remain engaged in the club and take on a leadership role and help to mentor some of the more junior students that are stepping into your shoes, I think that would be fantastic for the future of the club.

And the other thing I do want to mention is that whereas we see a huge amount of student effort and certainly that effort, the mentorship that Dr. Hu is giving them, that's fantastic because that's an important component of their learning. But this wouldn't be possible, Steve, without the efforts that you brought to the table along with your team at BMO. And also Imperial to have their support here, these things are very difficult for schools to implement without support of our community members. So what I see is people in industry, people in our community, the external community, willing to come in and help support our students to do some great things and to impart to our students the importance of what's going on out there in the energy sector. And I really want to say thanks to all the people I just mentioned, I think I'm just grateful for all the support we've received. I see this as an example of industry and the university and students all working together for a great outcome.

Heather Eggleston:

Yeah, I would just [inaudible 00:28:59] on that and say that I think one of the really important components that's critical to Canada achieving its net-zero goals is collaboration. And we see that in our industry happening with Pathways, but I think what we have and what we're talking about here today is a small but really great example of that. It's academia, the energy industry, the financial industry, and students all coming together to support the common goal of emissions reductions. And I think that's really exciting and really important as well.

Steve Kehoe:

Yeah, I'd agree. This collaboration has been very exciting for us to see come to fruition, and we're hoping that it continues on for many years to come. Dr. Hu, did you have anything final to add?

Dr. Jinguang Hu:

Yeah, it is a great pleasure to work with the team on this very exciting project. From my point of view as a professor, it is very inspiring to see students growth and achievement through their involvement in this program. I think they have been actively engaged in this program and have gained practical experience in project management, problem solving, and team collaboration, which are all essential skills for their future career. And I'm confident they will continue to make meaningful contribution to the advancement of renewable field technologies and the sustainable initiatives in the future.

Steve Kehoe:

Well, this effort is part of our BMO purpose to boldly grow the good in business and in life, and it highlights our commitment to our local and regional communities. I'd like to thank everyone for joining us today.

Michael Torrance:

Thanks for listening to Sustainability Leaders. This podcast is presented by BMO. We want to hear from you. Do you have an episode idea on a sustainability topic that you'd like us to develop? We welcome our listeners to submit questions or topics that will inform our research for future episodes. You can do so by visiting fanlist.com/BMO. That's F-A-N-L-I-S-T dot com slash B-M-O. We value your input and hope to keep the show as interactive as possible. So please leave a rating on Apple Podcasts, Spotify or your favorite podcast app. Or visit us at bmo.com/sustainabilityleaders. Our show and resources are produced with support from BMO's marketing team and Puddle Creative. Until next time, thanks for listening and have a great week.

Speaker 9:

For BMO disclosures, please visit B-M-O-C-M.com/podcast/disclaimer.