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Researching alternative energy

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Research and development (R&D) into new and cleaner energy technologies continues to grow. A recent survey looked at energy R&D in five broad areas: fossil fuels, nuclear technologies, energy transportation and transmission, energy conservation and alternative energy sources.

From 1993 to 2003, Canadian industries increased their R&D spending in only one of these areas: alternative energy sources. In 2003, this spending totalled $204 million, and accounted for 31% of industries’ total R&D spending on energy, compared with 15% in 1993.

Prior to 1996, Canadian industries were spending more on R&D in energy conservation than for alternative energy sources: that changed completely in 2000.

Of the 2003 spending on alternative energy, more than 40% went to technologies to store energy or to alternative fuels, such as ethanol and biodiesel. Improvements to hydroelectric generation accounted for 14% of R&D spending; solar energy got 11%.

Seven percent went to biomass energy, carbon dioxide capture and wind power technologies combined. Although Canada surpassed 1,000 megawatts of installed wind energy capacity by June 2006—enough electricity to power 315,000 homes—wind power technologies have not made up a large portion of Canadian R&D spending.

Canada’s manufacturing sector accounts for most R&D spending on alternative energy—$151 million in 2003. Manufacturing accounted for 75% of all spending on alternative energy research. From 1994 to 2003, manufacturing accounted for virtually all the growth in spending on alternative energy research. (The survey did not cover the spending of governments, universities and private organizations.)