Study: Research and development for new energy technologies in the private sector

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The search for alternative forms of energy has taken on a new life during the past decade among Canadian industries, according to this new study.

Industries have been dedicating more and more of their research and development (R&D) dollars into the development of cleaner, more renewable energy practices.

In fact, industry spending on R&D into energy increased substantially in only one field between 1993 and 2003 — alternative sources of energy.

In 2003, this spending hit $204 million (all dollar values are expressed in 1997 constant dollars), which accounted for 31% of total R&D spending on energy, more than double the proportion of only 15% in 1993. The manufacturing sector accounted for most of this increase.

Energy R&D is a broad area that, for the purpose of this paper, included five different fields of R&D: fossil fuels, nuclear technologies, energy transportation and transmission, energy conservation and alternative energy sources.

Alternative energy R&D conducted by Canadian industry in 2003 was heavily concentrated in developing alternative fuels and energy storage technologies. Over 40% of the $204 million was spent on R&D in storage of energy technologies, such as hydrogen cells for use in cars, or on alternative fuels, such as ethanol and biodiesel fuels.

Some scientists involved in energy R&D are interested in photovoltaic cells, which convert sunlight to electricity. Others are looking into biomass, which is plant matter such as trees, grasses, agricultural crops, waste or other biological material, which can be used as a solid fuel, or converted into liquid or gaseous forms for the production of electric power, heat, chemicals or fuels.

This study, part of the Analysis in Brief series, examined R&D efforts made by Canadian industry from 1993 to 2003 in five different types of energy R&D. It excludes spending by others, such as government and universities.

In 2003, Canadian industries devoted a total of $649 million to overall R&D in energy, which represented about 5% of all industrial R&D in Canada.

While R&D spending into alternative energies increased, spending in other areas varied.

For example, R&D spending into fossil fuel technologies was almost identical in 1993 and 2003. In 2003, it accounted for 33% of total energy R&D, unchanged from a decade earlier. Industries spent $213 million on fossil fuel R&D in 2003, down slightly from $217 million a decade earlier.

R&D spending on the transportation and transmission of energy was cut nearly in half during the 10-year period. In 1993, this area accounted for 20% of all spending on energy R&D. By 2003, the share had slipped to 11%.

Similarly, in 1993, R&D on nuclear technologies accounted for 12% of all energy R&D spending. By 2003, this proportion had fallen to only 8%.

Definitions, data sources and methods: survey number 4205.

The analytical article "Research and development for new energy technologies in the private sector" (11-621-MWE2006050, free) is now available online in the Analysis in Brief series.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Radu Chiru (613-951-3998), Science, Innovation and Electronic Information Division.