Citation: Menghwani, V.; Wheat, R.; Balicki, B.; Poelzer, G.; Noble, B.; Mansuy, N. Bioenergy for Community Energy Security in Canada: Challenges in the Business Ecosystem. Energies 2023, 16, 1560. https://doi.org/10.3390/en16041560 Academic Editor: Seung-Hoon Yoo Received: 12 December 2022 Revised: 21 January 2023 Accepted: 25 January 2023 Published: 4 February 2023 Copyright: © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). energies Article Bioenergy for Community Energy Security in Canada: Challenges in the Business Ecosystem Vikas Menghwani 1, * , Rory Wheat 2 , Bobbie Balicki 3 , Greg Poelzer 2 , Bram Noble 1 and Nicolas Mansuy 4 1 Department of Geography and Planning, Kirk Hall, 117 Science Place, University of Saskatchewan, Saskatoon, SK S7N 5C8, Canada 2 School of Environment and Sustainability, Kirk Hall, 117 Science Place, University of Saskatchewan, Saskatoon, SK S7N 5C8, Canada 3 Department of Agricultural and Resource Economics, College of Agriculture and Bioresources, 51 Campus Drive, University of Saskatchewan, Saskatoon, SK S7N 5A8, Canada 4 Natural Resources Canada, Canadian Forest Service, Northern Forestry Centre, 5320 122 Street, Edmonton, AB T6H 3S5, Canada * Correspondence: vikas.m@alumni.ubc.ca Abstract: Bioenergy represents a viable renewable alternative for the many off-grid remote communi- ties in Northern Canada that rely on diesel-based energy infrastructure. Despite the abundance of forest-based biomass, bioenergy for heat and power in Canada is used primarily in industrial contexts. Community-scale bioenergy, although growing, has been limited. Supply chain challenges, institu- tional and policy arrangements, and community perspectives indicate a need to better understand the ‘business ecosystem’ for bioenergy in Canada. The ecosystem includes technologies, community contexts, suppliers, developers, and policy makers. In this study, we explore the bioenergy business ecosystem challenges and perspectives from supply-side stakeholders. Interviews were conducted with representatives from the government, industry, and community—all working in bioenergy. The results indicate the following challenges facing the bioenergy ecosystem, with respect to community energy security: lack of cross-jurisdictional consistency in legislation and policies across Canada, structural issues such as subsidized energy and utility ownership, and misdirected support for local capacity building in the bioenergy sector. We also find that the existing support systems are prone to misuse, pointing to efficiency gaps in investment flows. The insights that emerge from this work, especially from industry stakeholders, are meaningful for communities and policy makers alike. Keywords: bioenergy ecosystem; indigenous energy; forest biomass; community energy 1. Introduction There are over 270 remote off-grid communities in Northern Canada, with nearly 75% reliant on diesel-based energy generation [1] and are energy insecure. Diesel is often transported through difficult and seasonal supply routes and needs storage under harsh winter conditions. Renewable energy options could be a viable and empowering alter- native for remote communities, offering clean and locally produced sustainable energy. While wind and solar are the fastest growing energy sources in Canada [2], the country has substantial bioenergy potential and the highest amount of biomass per capita glob- ally [3]. Forest biomass comprises approximately 6% of Canada’s energy supply, second to hydropower in terms of renewable energy, but the majority of that is used in the pulp and paper industry [4]. In comparison, the European Union sources most of their renewable energy production from solid biomass [5]. With a mature and sustainable forestry sector, Canada is well positioned for a much higher contribution from bioenergy towards its total energy supply. Specifically, there is potential for community-scale bioenergy in remote communities, especially those located within or adjacent to the boreal forest [6]. For many remote communities, diesel displacement by bioenergy could not only increase energy Energies 2023, 16, 1560. https://doi.org/10.3390/en16041560 https://www.mdpi.com/journal/energies