The greenhouse industry in Ontario has seen substantial growth in recent years, presenting both opportunities and challenges, especially in managing energy costs. Dave Cornies, President of Energy Source, shares his insights on how they support the greenhouse sector by delivering reliable and cost-effective energy solutions. He explains the complexities of managing energy, the growing strain on resources, and the important role natural gas currently plays in keeping greenhouses operational, especially during the harsh Canadian winters.
Greenhouse boilers
Energy cost management
Energy Source has developed in-house expertise to help greenhouse operators manage gas costs and all factors contributing to overall energy expenses. Dave notes, "When I say lowest energy costs, it means more than just the cost of the gas; it's the cost of their delivery and the cost of their installations." By analysing energy consumption and isolating variables like weather conditions, Energy Source helps its clients assess the effectiveness of energy-saving installations, such as heat energy curtains.
With Canada's extreme weather fluctuations, precise energy management is important. "We help them try and understand that," says Dave, referring to whether such energy-saving investments are worth it. While installation companies provide estimates, Energy Source offers real-world results, helping greenhouse operators make informed decisions.
Industry growth and resource strain
The expansion of the greenhouse industry has put a significant strain on Ontario's utilities, particularly in natural gas, electricity, and water resources. Dave observes, "The industry in our area has grown so quickly. It's always a constant strain on the system." In particular, the increasing demand for energy resources presents challenges for greenhouse operators and utility providers.
Photo right: greenhouse boilers
"The utility companies are responsible for delivering natural gas to the greenhouse operators, while Energy Source buys and sells the gas and ensures its delivery to the utilities," Dave adds when describing their role in the system.
Balancing expansion with energy commitments
One of the biggest challenges in this dynamic relationship is the balance between the industry's need for expansion and the capital requirements to deliver additional resources.
Photo right: boiler inspection flame
Dave explains that utility providers often ask greenhouse operators to make long-term commitments regarding their future energy needs. However, the uncertainty in the industry, influenced by factors such as fluctuating profits and loan availability, makes it difficult for operators to provide definitive long-term commitments.
"You know, as a greenhouse operator, I may own the land and have plans to build another 30 acres, so there is enough space, but I may not actually do it because there are just too many variables," Dave says, emphasizing the unpredictable nature of the business. "This uncertainty can make it challenging for utility providers to guarantee gas availability for future expansions as they cannot proceed without a relatively high level of contracted commitments. Yet, despite the complexities", he notes that "somehow it all works out through teamwork between operators and utility companies."
The natural gas supply chain and the Dawn Hub
Dave touches on the intricacies of the natural gas supply chain worldwide, emphasizing the highly interconnected nature of the North American market. "Gas is coming from multiple locations, forming a network of production and demand," he explains. While gas flows across borders, from Canada, the U.S., and even Mexico, it is difficult to track its exact origin due to the vast and interconnected pipeline system.
Energy Source leverages the Dawn Storage Hub, a trading hub in Ontario, to acquire gas locally and make the process more efficient. "We make big commitments to large aggregation and production companies, and in exchange, they make sure that gas gets delivered to our customers," says Dave. This allows Energy Source to ensure a stable supply for its clients without needing to source gas from across North America.
The role of energy in greenhouses
Dave emphasizes the importance of energy reliability for greenhouse operations, particularly during Ontario's cold winters. "If the heat were to disappear, a greenhouse grower could be out of business in Canada, in the dead of winter, in less than a day," he states, highlighting the importance of a constant gas supply for the industry's survival.
In such conditions, losing heat even for a few hours could devastate a greenhouse operation, leaving it with significant crop damage.
He acknowledges the importance of a robust and reliable natural gas supply chain, and while he jokes about taking full credit for it, he emphasizes the crucial function the many role players have in ensuring the industry stays operational, particularly during peak winter months.
Through close relationships with both the industry and utility providers, Energy Source helps greenhouse operators navigate the complexities of energy management, ensuring that they can continue to thrive even in the face of unpredictable conditions. "We're fortunate to be part of an industry that is expanding quite rapidly," says Dave, adding, "And we're doing our best to keep ahead of it."
For more information:
Energy Source
Dave Cornies, President of Energy Source
+1 (519) 577-0110
Mike Brookbank, Energy Services
[email protected]
www.energysource.ca