Natural Resources committee  Usually we're located on a landfill site. For the project in Edmonton we're located on the site of the integrated waste management centre, where you have the recycling, the composting. In Mississippi, the approach is the same; we're located adjacent to a landfill site. In Varennes, we'll be located on the site of an existing corn ethanol facility, but it's an industrial park.

Natural Resources committee  You're right in saying that Enerkem technology can use more than municipal solid waste. We can use a wide variety of feedstock. At our pilot facility, which we've been operating since 2002, we tested over 20 types of feedstock, from wheat straw to wood residues, used utility poles, construction and demolition of forest residues—it's quite diverse.

Natural Resources committee  We have to realize that this is a technology that's sustainable without government support. It's not a question of profitability. What it's all about is a question of financing those first plants. It's really a part of the chain of financing: from R and D to pilot to demo, you need to raise the capital.

Natural Resources committee  I hope my explanation was clear.

Natural Resources committee  I cannot comment on Plasco. However, I can tell you that Enerkem has carried out all of the development stages for a new technology. We are talking about a clean technology. In terms of R and D, we conducted the pilot stage. Since 2003, Enerkem has tested 25 types of raw material.

Natural Resources committee  We can use a wide variety of waste. In Edmonton the agreement is with the City of Edmonton. In Varennes, we have agreements with different suppliers of waste streams that are coming from the ICI sector, construction, and demolition. In this sector, it's usually private waste holders, and for residential it's usually the municipal world.

Natural Resources committee  Well, we really complement all the upstream activities that a municipality has already taken, so we're not really impacting on what it already does. We're there to—

Natural Resources committee  No, not at all. In Edmonton they already—

Natural Resources committee  In Edmonton they already divert 60% of their waste. They have one of the highest diversion rates in North America. They have the largest composting facility and they have very aggressive recycling programs. We will contribute to increase the diversion rate to 90%.

Natural Resources committee  That is....

Natural Resources committee  Of course. In Plasco's case, they produce electricity, while Enerkem has a biofuel production process. It is an integrated process. Upstream, Enerkem turns solid matter into a synthesis gas that is then purified and conditioned to reach chemical grade. This chemical grade syngas can then be synthesized into alcohol using catalysts.

Natural Resources committee  The response to our projects and their social acceptance have been very positive. When we talk to people about biofuels produced from their garbage, they are very receptive. We permitted our plant in Alberta, and we did an open house and had a public comment period. We did it also as part of our Mississippi project; we had a public comment period as part of the NEPA process.

Natural Resources committee  Is this like an accelerated depreciation?

Natural Resources committee  I don't know if these plants will necessarily be paying taxes in the first years of operation, so I don't know if this would be a good tool for the first years of operation, but if they can attract private investment, like flow-through shares, for example, it could be used. Certain fiscal mechanisms could be helpful.

Natural Resources committee  Thank you. Good afternoon. First, on behalf of Enerkem, I would like to thank you for having invited me to participate in the Standing Committee on Natural Resources' work on innovation in the energy sector. In my presentation I will discuss Enerkem's experience, the benefits of its innovation for Canada, the challenges of developing and commercializing innovations in the energy sector, the role of the government, and the potential for the future.