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Results: 31 - 45 of 192
View Lyne Bessette Profile
Lib. (QC)
Thank you.
One of my colleagues asked the previous witnesses a question earlier. I'd like to hear your thoughts on it, to wrap up.
Do you know how other countries are transitioning to greener farm fuels? What does innovation in this sector look like around the world?
Serge Buy
View Serge Buy Profile
Serge Buy
2021-05-04 17:14
Another good question.
It depends on the country. In France and Germany, for example, many things are done to help producers make the transition. In particular, there's a great deal of funding for producers. This isn't the case in Canada. We aren't at the same level. In those countries, given the subsidies that they receive, farmers can afford to adopt these extremely expensive technologies. Most farmers couldn't afford to do so otherwise.
However, our environmental concerns may not be shared by other countries, such as Russia or Brazil, which still compete with us. Our farmers, if they want to sell their grain, must be able to compete with these types of countries.
That's why I'm saying that we must really pay attention to our actions. As the saying goes, it's better not to kill the goose that lays the golden eggs.
Michel Chornet
View Michel Chornet Profile
Michel Chornet
2021-05-04 11:19
Thank you.
Good morning, Madam Chair, and ladies and gentlemen of the Standing Committee on Industry, Science and Technology.
Thank you for inviting me to appear before the committee.
My name is Michel Chornet, and I am Executive Vice-President, Engineering, Innovation and Operations, at Enerkem.
The theme of the economic recovery provides a unique opportunity for Canada's energy transition. First, I will say a few words about our company.
Enerkem was cofounded in 2000 by my father Esteban, an emeritus professor at the Université de Sherbrooke, and my brother Vincent. They developed and brought to commercial scale a revolutionary technology that is unique in the world. It produces advanced biofuels and renewable chemical products from biomass and nonrecyclable waste.
Our technology is a key link in a genuine circular economy. We therefore contribute to energy diversification and to the manufacture of everyday, low-carbon products. This is a sustainable alternative to burying or incinerating waste materials. While many see waste materials as garbage, we at Enerkem see them as a source of accessible, circular and inexpensive carbon.
Our headquarters are located in Montreal and we operate large-scale commercial demonstration facilities in Edmonton, Alberta, and two innovation centres at Westbury, Quebec and Edmonton, Alberta. We employee more than 250 people across Canada.
With our advanced recycling technology, we have succeeded in creating industrial partnerships in Canada and abroad, including with Suncor, NOVA Chemicals, Shell, Repsol, Proman and SUEZ.
Enerkem is founded on a business model that relies on innovation. We are developing a technology that required, and continues to require, a lot of research and development. To continue our development and to demonstrate that our technology was viable and, above all, commercially scalable, we had to secure private and public capital.
Through our plant in Edmonton, Enerkem has succeeded in demonstrating the flexibility, efficiency and maturity of our advanced recycling technology. The need to innovate never stops, however. Although the technology has reached commercial maturity, the competition is such that additional investments in innovation are required.
Canada has a unique opportunity to develop an advanced recycling model. This would keep the chemical and petrochemical industries competitive through major reductions in greenhouse gases and the creation of high-quality jobs. The Canadian model of advanced chemical recycling would be based on infrastructures already in place, such as low-carbon electricity, and on nonrecyclable waste, which is a major source of carbon.
Last December, we announced the construction of a biofuels plant in Varennes, on the Montreal's South Shore. Our group of strategic partners includes Shell, as the lead investor, Suncor, Proman and Hydro-Québec, which will supply renewable hydrogen and oxygen. We also have the support of the governments of Canada and Quebec. This C$875-million project is called Recyclage carbone Varennes.
The plant will produce a second-generation, low-carbon biofuel. It will reduce the annual production of greenhouse gases by about 170,000 tons of CO2 equivalent. In the world of waste management, Recyclage carbone Varennes' contribution will be considerable. Each year, the plant will convert more than 200,000 tons of nonrecyclable material into almost 125 million litres of biofuel. The economic impact in Quebec will be $85 million per year, not to mention 500 jobs during the construction of the plant and 100 jobs when it is operating.
The economic future looks promising. Currently, we are actually seeing a very rapid progression in the market for new-generation biofuels, because few technologies have reached maturity in making the transition.
Let's quickly look at Canada's situation in the world. In 2018, Canada was in 10th place among greenhouse gas emitters. In 2019, total gasoline sales in Canada reached 45 billion litres. Prime Minister Trudeau has committed to reducing greenhouse gas emissions by 40% to 45% by 2030. Canada has also committed to have a carbon-neutral economy by 2050.
To reach our targets, market conditions that are favourable to rolling out innovative solutions must be created.
A competitive market must be created in order to attract private investment and develop bioenergy projects. An investment tax credit could make it easier to finance companies.
Consistent support for the lifecycle of technological innovation must be assured, through the use of current programs.
The Clean Fuel Standard must be used to support Canadian innovation.
In closing, let me repeat what I said a little earlier. Canada must create favourable conditions to allow the development of innovating companies, as they will contribute directly to our economic recovery in the post-COVID-19 period.
Thank you for your attention.
Michel Chornet
View Michel Chornet Profile
Michel Chornet
2021-05-04 12:03
In my opinion, Canada has a unique opportunity to meet those objectives. However, any standards or regulations must support innovation.
In California, the state standard supports innovation. For example, it recognizes renewable hydrogen, which is hydrogen produced with a renewable source of electricity. It has a standard and it provides transparency around the life cycle calculation, which is used consistently for all products industry-wide. It is able to recognize innovation and provide credits in our industry for waste diversion, for example, to account for what would happen if it were not recycled.
In my opinion, the Clean Fuel Standard being developed is an attempt to address this issue, but it needs to be more consistent. The standard needs to drive innovation, which we think California has done well, as has Europe with the Renewable Energy Directive.
View Pierre Paul-Hus Profile
CPC (QC)
Thank you, Mr. Chair.
Good afternoon to the witnesses.
The Innovative Solutions Canada program was launched in December 2017. So the 2019-2020 report was tabled two or three years after its implementation.
In the “Challenge Stream” component of this report, funding provided to companies, particularly in the technology and health fields, is discussed. Recipients of funding included 60 businesses. No indigenous businesses received funding, no businesses run by people with disabilities received funding, and only two businesses run by women received funding.
Is there a reason for this?
Lorenzo Ieraci
View Lorenzo Ieraci Profile
Lorenzo Ieraci
2021-05-03 15:50
Thank you for the question.
The Innovative Solutions Canada program is managed by Innovation, Science and Economic Development Canada, or ISED. So I'm not in a position to answer the question directly, unfortunately. My colleagues who work in that department would be better able to answer questions about the parameters of the program and how it is managed.
View Pierre Paul-Hus Profile
CPC (QC)
So none of the three witnesses here today can answer these questions.
I assume the same will be true for my next question. In the 2019-2020 annual report, it states that only 2.6 % of the companies that applied to the programs were majority women-owned companies.
In your opinion, is this low percentage normal?
Lorenzo Ieraci
View Lorenzo Ieraci Profile
Lorenzo Ieraci
2021-05-03 15:51
Again, our colleagues at ISED would be better placed to answer a question about the Innovative Solutions Canada program.
I know, however, that the program, which was developed by our colleagues at ISED, is intended to encourage innovation in technology. Unfortunately, I don't know how the program is doing to ensure that companies are aware of the program and understand how it works.
View Pierre Paul-Hus Profile
CPC (QC)
This program was put in place by the Liberal government, and it was my Liberal colleague who wanted to study it today. We're trying to ask the right questions to understand what happened. Having said that, I understand that this is the responsibility of another department, and I don't blame you at all.
I would still like to go back to the “Challenge” component. Of the companies that applied to the program, 2.6% were majority women-owned, and of those, 2% received funding.
I assume you can't tell us why some companies were selected and others rejected, because that is a matter for ISED. Am I wrong?
Lorenzo Ieraci
View Lorenzo Ieraci Profile
Lorenzo Ieraci
2021-05-03 15:53
That's right. ISED representatives would indeed be in a better position to answer your question.
I can mention one point, though, that I hope will be helpful. The Office of Small and Medium Enterprises, or OSME, is one of the organizations that is part of our department. OSME has offices across the country, and one of its activities is to ensure that businesses view the Government of Canada as a potential client to which they can provide goods and services.
Some businesses may not think of the Government of Canada as a potential client. Through its activities, OSME ensures that businesses are aware of this fact, and helps them by explaining the procurement system. It lets them know what opportunities exist and explains how to be part of the procurement system.
View Tim Louis Profile
Lib. (ON)
Thank you. I appreciate that.
I'll move to Ms. Turcotte. You mentioned Triple Green in Manitoba. They use a biodrying air system, which is a nascent technology, but it's scaling up quickly because propane is 82% water and natural gas is 66% water, so that moisture turns into water vapour and that's being put into the grain dryers and the grain. By making the heat source dry, it creates efficiency. Their motto is “solutions that save money”.
This technology is growing and it's moving quickly and scaling, but there's also a role for the private sector. Can you explain a bit about the competitive advantages of companies like this that would drive innovations, not only with our government making investments but the private sector also investing.
Isabelle Turcotte
View Isabelle Turcotte Profile
Isabelle Turcotte
2021-04-29 16:20
Yes, absolutely. More than anything, companies need policy certainty when [Technical difficulty—Editor] their investment portfolios. That requires a [Technical difficulty—Editor] on the price signal. It requires a clearly communicated [Technical difficulty—Editor] increasing price on carbon.
It bears noting that the private sector or the corporate world has gone through flip-flops on carbon pricing, including Alberta and Ontario most notably. In these provinces we're seeing a private sector that is hesitant and is struggling to get [Technical difficulty—Editor] from headquarters, which are not in Canada because they were uncertain about where Canada was going on carbon pricing.
It is really important that we send a strong message to these companies that Canada is a place to invest, to produce your low-carbon products and to be a leader in innovation.
View Nathaniel Erskine-Smith Profile
Lib. (ON)
Should we be looking to say, then, in our recommendations, that some fraction of the proposed SIF funding and the renewal of SIF should be devoted to early stage start-ups?
Lynne Manuel
View Lynne Manuel Profile
Lynne Manuel
2021-04-29 12:54
I've been talking about this for quite a while now, and I think that's really a necessary part of what the government needs to be supporting, and I will say that there's so much leverage on those dollars. We're talking about doing lab-scale work where people can take that data forward and convince other investors that they have a working technology.
Working at that scale is very economical for everyone concerned. We don't want people to reach that investable stage before they've done their homework, because it costs so much more to do the work at that point. I think it's really a good deal for everyone.
View Sébastien Lemire Profile
BQ (QC)
Absolutely.
What are the regulatory roadblocks to innovation currently faced by our businesses and entrepreneurs?
Results: 31 - 45 of 192 | Page: 3 of 13

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