Evidence of meeting #28 for Environment and Sustainable Development in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was technology.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

W. Scott Thurlow  President, Canadian Renewable Fuels Association
Marie-Hélène Labrie  Senior Vice-President, Government Affairs and Communications, Enerkem
Theresa McClenaghan  Executive Director and Counsel, Canadian Environmental Law Association
Fe de Leon  Researcher, Canadian Environmental Law Association

3:30 p.m.

Conservative

The Chair Conservative Harold Albrecht

I'd like to call to order meeting number 28 of the Standing Committee on Environment and Sustainable Development. We are continuing our study on the management of municipal solid waste and industrial materials.

We have appearing as witnesses today, from the Canadian Renewable Fuels Association, Mr. Scott Thurlow, president. Welcome.

From Enerkem we have Marie-Hélène Labrie, vice-president, government affairs and communications. Welcome.

Appearing by video conference from Toronto, the Canadian Environmental Law Association, we have Theresa McClenaghan, executive director and counsel, and Fe de Leon, researcher. Welcome.

Each of the groups will give a 10-minute opening statement. Once all three groups have given their opening statements, we will have questions from the committee members.

We will begin with Scott Thurlow, Canadian Renewable Fuels Association. Welcome, Mr. Thurlow.

3:30 p.m.

W. Scott Thurlow President, Canadian Renewable Fuels Association

Thank you very much, Mr. Chairman.

I am very happy to be here today on behalf of Canada's biofuel industry to talk about waste management and landfills in Canada.

Founded in 1984, the Canadian Renewable Fuels Association is the country's leading advocate for the economic and environmental benefits of biofuels, and represents the full spectrum of Canada's domestic biofuels industry.

Across the country, Canada's renewable fuels plants are generating gross economic benefits in excess of $3.5 billion to the Canadian economy every year, and have created more than 14,000 direct and indirect jobs.

In April CRFA launched our industry's new vision and action plan, “Evolution and Growth”. I believe all committee members received copies in advance of my testimony. This is the first comprehensive plan on renewable fuels in Canada in several years, and it makes six policy recommendations for the continued growth and expansion of biofuels use and production in Canada.

A big part of our plan is making Canada a clean energy superpower and transitioning today's ethanol and biodiesel plants into the biorefineries of the future. This work is well under way. In fact, last week I was at the inauguration of Enerkem's biorefinery in Edmonton.

Municipal solid waste is an environmental issue for everyone and every city around the world. As you know, some cities cart their trash to other cities or other countries, expending both capital and energy to manage a problem that is not going away. There is no doubt that conservation is always going to be the first, best solution, but with a growing population and growing economy, no matter how much we reduce, reuse, and recycle, we will still have municipal solid waste.

CRFA members are already working to divert waste from landfills and create energy simultaneously. As mentioned, Enerkem opened the world's first commercial-scale waste-to-biofuels biochemicals plant last week, and in Varennes, Quebec, GreenField Specialty Alcohols is treating organic waste retrieved from the residential, industrial, commercial, and institutional sectors to produce biogas. An anaerobic digester will be installed on the site of an existing corn-ethanol plant, and will use organic waste from local south shore communities to displace a portion of the plant's natural gas use.

This will provide a new source of clean, renewable fuel and high-quality compost for direct use on agricultural fields. The facility will accommodate the retrieval and treatment of more than 79,000 metric tons of organic matter annually. Construction of this new facility is scheduled to begin in July and is expected to be completed by September 2015.

On the same site, GFSA is partnering with Enerkem to incorporate its thermochemical technology to produce cellulosic ethanol from industrial waste, diverting even more waste from landfills.

It is often said that every challenge is an opportunity. Here we have a garbage challenge, if not a garbage problem, and a renewable fuels opportunity that will reduce municipal solid waste and reduce the impact on the environment of greenhouse gases from fossil fuels. There is a double GHG benefit because, left untreated, the municipal solid waste will in time degrade further and create additional GHGs.

The environmental need is real. The environmental benefits are clear. What we need now is a strategy on how to get there. All municipalities can look to the Enerkem-Edmonton partnership as a model. Instead of paying tipping fees to bury waste, Edmonton chose to make strategic investments, investing capital in technologies that will do away with trash forever by converting it into energy and chemicals.

Any municipality that is spending any public funds to deal with trash, either burying it or carting it away, should take a hard look at how that capital is being deployed. Those fees—a sunk cost—could be invested into technologies that will do away with the trash forever by converting it into energy or chemicals.

Municipalities are only one of the many partners that are needed. The federal and provincial governments have their own roles to play. Specifically, we want to ensure that Canada continues to produce and use more clean-burning and waste-diverting renewable fuels.

Cellulosic biofuels produced from waste are indistinguishable from traditional ethanol made from corn or wheat, but as you can imagine, this type of technology is incredibly capital intensive and the investment risk for these projects is considerable. In Canada this is further frustrated by the fact that other jurisdictions are aggressively pursuing this investment capital and offering aggressive policy incentives. The United States has a volumetric requirement for cellulosic fuels, as well as financial incentives for the production and use of cellulosic fuels, essentially drawing venture capital to the U.S. like a magnet.

To help Canadian producers secure investment and produce these fuels in Canada, we are asking the federal government to remove the excise tax on cellulosic fuels. In the past, tax exemptions for ethanol and biodiesel helped to kick-start those industries in Canada.

A second item, which we believe will go a long way in promoting the use of these cellulosic fuels, is appropriately measuring the fair value of the GHG reductions that they create. Cellulosic fuels reduce GHGs by over 60% compared to petroleum-based gasoline. Ensuring the ability to obtain a fair value for those environmental benefits is key to the success of all renewable fuels. If producers could get a fair value for those emissions reductions, the margin between advanced biofuels and its competition would shrink even further.

Finally, higher ethanol blends need to be available at the pumps for Canadian consumers. The corporate average fuel economy rules, introduced by this government to harmonize fuel economy standards across North America, will require fuel economy improvements, starting in the 2017 model year vehicles. That is not very far away. Original equipment manufacturers, including Ford, General Motors, and Mercedes, are asking for higher octane fuels in order to meet the needs of their CAFE obligations, and there is no cheaper cleaner source of octane than ethanol.

In the past, our fuel infrastructure has not kept pace with technology. Just ask the owners of over three million vehicles on our roads today that can take up to 85% ethanol. Consumers deserve a choice at the pumps, and right now there is no choice at all.

CRFA is calling on federal and provincial governments to make strategic investments in infrastructure, and encourage pump turnover from existing fuel providers, independent retailers, and new market entrants to provide opportunities for consumers to choose these higher-level blends. Those higher-level blends can and should include cellulosic biofuels from waste.

Today is a time of real environmental challenge, but there is also an opportunity. Renewable fuels technology gives us the opportunity to divert solid waste from our landfills, reduce GHGs from our environment, and produce fuels that are sustainable. It's an opportunity that is ours for the taking.

Thank you. I would be happy to answer your questions.

3:35 p.m.

Conservative

The Chair Conservative Harold Albrecht

Thank you very much, Mr. Thurlow, and thank you for being well under your 10-minute allotment.

I have a question of clarification. You said “79”, yet your notes, on page 1, say, “This will provide a new source of clean, renewable fuel and high quality compost for direct use on agricultural fields. The facility will accommodate the retrieval and treatment of more than 49—

3:35 p.m.

President, Canadian Renewable Fuels Association

W. Scott Thurlow

Yes, 49 metric tons.

3:35 p.m.

Conservative

The Chair Conservative Harold Albrecht

You said “79”.

3:35 p.m.

President, Canadian Renewable Fuels Association

W. Scott Thurlow

Oh, my apologies.

3:35 p.m.

Conservative

The Chair Conservative Harold Albrecht

Thank you for that clarification. I just wanted to be sure.

3:35 p.m.

President, Canadian Renewable Fuels Association

W. Scott Thurlow

I always round up.

3:35 p.m.

Conservative

The Chair Conservative Harold Albrecht

I round down when I'm giving my members time for their questions, and they've found that out.

Thank you very much.

We'll now move to Marie-Hélène Labrie, vice-president, government relations for Enerkem.

Welcome.

3:35 p.m.

Marie-Hélène Labrie Senior Vice-President, Government Affairs and Communications, Enerkem

Thank you, Mr. Chair. Good afternoon.

Enerkem is a private Quebec company that produces biofuels and renewable chemical products using residual materials such as non-recyclable and non-compostable waste. Using its exclusive technology, Enerkem converts residual material headed to the landfill into added-value products such as biomethanol and ethanol.

Enerkem was founded by two visionary men who are today still part of the senior management team: Dr. Esteban Chornet, a world-renowned scientist; and Mr. Vincent Chornet, a renowned entrepreneur and businessman.

Headquartered in Montreal, Enerkem employs 170 people across Canada, and 30% of them are engineers. The company operates both a pilot facility and a demonstration facility in Quebec, and just last week inaugurated Enerkem Alberta Biofuels, its first full-scale commercial facility. This game-changing plant is located in Edmonton. It is the world's first full-scale facility to convert residential waste into biofuels and renewable chemicals. Enerkem is also developing additional biorefineries in North America and globally, based on its modular manufacturing approach.

The company's next project is a biorefinery facility in Varennes, Quebec, and it will use construction and demolition debris. This first-of-kind facility is supported by the next generation biofuels fund, managed by SDTC.

Enerkem's technology is a breakthrough innovation that uses non-recyclable garbage instead of petroleum to produce liquid transportation fuels and renewable chemicals. It is a true biorefinery. This technology reduces our collective dependence on fossil sources. It is transforming the way that communities manage their waste by offering a sustainable and economical alternative to landfilling and incineration. It is complementary to upstream recycling and composting.

Last week, we officially launched our first full-scale facility, with Mayor Iveson, from Edmonton—

3:35 p.m.

Conservative

The Chair Conservative Harold Albrecht

I realize that I was maybe a little aggressive when I said 10 minutes. You are probably going quickly because of that.

3:40 p.m.

Senior Vice-President, Government Affairs and Communications, Enerkem

Marie-Hélène Labrie

No, maybe it's just my natural pace. Is it too quick?

3:40 p.m.

Conservative

The Chair Conservative Harold Albrecht

Because of our translators, it would be easier if you would—

3:40 p.m.

Senior Vice-President, Government Affairs and Communications, Enerkem

Marie-Hélène Labrie

Would you like me to start again, or...?

3:40 p.m.

Conservative

The Chair Conservative Harold Albrecht

Just slow down a little bit to give them some time.

3:40 p.m.

Senior Vice-President, Government Affairs and Communications, Enerkem

Marie-Hélène Labrie

Should I go back?

3:40 p.m.

Conservative

The Chair Conservative Harold Albrecht

Don't start over, just slow down a bit from here on in.

Thank you. Sorry to interrupt.

3:40 p.m.

Senior Vice-President, Government Affairs and Communications, Enerkem

Marie-Hélène Labrie

Last week, we officially inaugurated our first full-scale facility in Edmonton. This announcement was shared by Enerkem's CEO, Mr. Vincent Chornet, Mayor Don Iveson from the City of Edmonton, and the Honourable Robin Campbell, Alberta Minister of Environment and Sustainable Resource Development, as well as Diana McQueen, Alberta Minister of Energy. The City of Edmonton is a world leader in sustainable waste management, and we're proud to have been selected by the city to help Edmontonians increase their residential waste diversion rate from 60% today, to 90%. Alberta Innovates—Energy and Environment Solutions is also a partner in this project. Their staff served on the steering committee that provided technical input and advice during the selection process.

The facility will have a production capacity of 38 million litres per year, which is enough to fuel the tanks of 400,000 cars annually on a 5% ethanol blend. It is expected to generate net economic spending in the local area of nearly $65 million annually. During the construction, more than 600 direct and indirect jobs were created for the modular manufacturing of the facility's systems and their on-site assembly. You have a summary of this economic impact analysis that was conducted by Doyletech.

The start-up of the biorefinery is just a few days away, and follows a rigorous commissioning plan, which is nearing completion. Biomethanol production will begin progressively during the start-up. A module converting the biomethanol into advanced ethanol will be added during 2015. The completion of this game-changing facility is by far one of the most significant developments the waste and biorefinery sectors have seen yet. Municipalities around the world are looking at what we are doing in Edmonton. We're thrilled that it is becoming a model for many communities and industries around the world.

Enerkem's technologies are homegrown, cleantech innovations. It is the result of more than 10 years of sustained efforts to scale up our technology from pilot and demonstration to now commercial scale.

Disruptive technologies are not overnight successes. They are crafted by like-minded customers, visionary founders, and investors. Pilot and demonstration plants take years to develop and require discipline and sustained efforts. They also require public policies and programs that stimulate private investment, open the marketplace, and help move from lab, pilot, demonstration, to full-scale production.

Enerkem benefited from the support of the federal government, which, through Natural Resources Canada, NSERC, and the Sustainable Development Technology Canada tech fund, has provided support in developing our technology early on, and up to this day has been an essential partner in our success.

The Quebec government has also been involved at every stage of our development and growth, from the early phase of the research at the Université de Sherbrooke to the development of our modular equipment fabrication infrastructure. The Alberta government is also another of our partners through Alberta Innovates—Energy and Environment Solutions, Alberta Energy, and the Climate Change and Emissions Management Corporation.

Policies on renewable fuel standards are at the cornerstone of Enerkem's commercial growth. They have opened the marketplace for Enerkem's biofuels and created the policy certainty necessary to attract private investment. Enerkem has been successful in raising $240 million in private capital since its inception.

According to Analytica Advisors, which has been monitoring Canada's cleantech sector for five years, the Canadian clean technology industry is valued at $11 billion today, and is already on track to grow to a $28-billion industry by 2022. Its success is partly due to its structure. In fact, the industry is composed of about 700 SMEs around the country. Most of them have less than $50 million in revenue, but together they invest $1 billion in R and D, and employ 41,100 Canadians, 20% of whom have not yet celebrated their 30th birthday.

In addition to solving waste management issues at home, Enerkem's clean technology opens the door to export increases. In North America alone, 529 million tonnes of waste are generated every year. More than half of it is landfilled, and it has the potential to be converted into 63 billion litres of biofuels annually with Enerkem's technology.

Given Enerkem's modular manufacturing approach, biorefinery facilities built in the United States and elsewhere can be built in large part in prefabricated modules in eastern Canada where Enerkem has built the major part of its manufacturing infrastructure.

The benefits of converting our non-recyclable garbage into higher value products are significant for Canadians. It reduces greenhouse gas emissions by approximately 60%. It provides municipalities with a cost-effective alternative to landfilling and incineration. It increases energy diversification and greens our energy basket. It helps meet our federal and provincial renewable fuel mandates. It increases domestic production of biofuels and reduces our biofuel imports with locally produced, second-generation biofuels. It creates high-quality green jobs. It implements a new industry, the biorefinery sector. It stimulates regional economies. It contributes to revitalizing our manufacturing sector. It elevates Canada's profile as a leader in clean technology, and it contributes to the advancement of research in advanced chemicals and new biofuels.

To ensure the development of a sustainable waste management sector in Canada, we would like to make four recommendations.

First, the federal government should continue its efforts to support the commercialization of Canadian innovation and technology.

A variety of activities can ensure that innovations, which have the potential to profitably solve waste management issues, are supported until they reach the full commercial scale. These policies and programs are essential to attract the private investment necessary to scale up technologies and finance first-of-kind projects until they can be financed in a more traditional way, meaning with the support of banks via debt financing.

R and D tax credits and Sustainable Development Technology Canada are great examples of how the federal government is making a difference.

Second, governments should make sure that regulations take into account new technologies and that they be updated in order to reflect these new circumstances.

For example, clean technologies that are waste conversion processes involving the use of heat but not combustion, such as incinerators, can sometimes be forced to follow the same restrictive environmental permitting processes that are imposed on incinerators. These provincial regulations must absolutely be updated as today they are an impediment to the development of sustainable waste diversion projects and end up reinforcing the status quo around the use of landfilling.

Third, the federal government must seriously consider initiatives to stimulate the next-gen biofuel sector.

The second-generation biofuels sector has not benefited from the programs that were put in place for the conventional biofuels industry, given the timing of its commercial deployment. Today, only one program exists, and it only allows the financing of one project. This is the next generation biofuels fund managed by SDTC.

Countries around the world have put in place policies to stimulate the development of the second-generation biofuels sector. Some countries, like the U.K., have a double-counting factor for cellulosic ethanol. One litre of cellulosic ethanol counts for two litres, which stimulates refiners to buy this product and investors to finance these capital-intensive projects. In the U.S. the federal government has established a mandate that is specific to cellulosic biofuels and has implemented tax incentives for cellulosic biofuels.

We would like to recommend that the government remove the fuel excise tax on cellulosic biofuels. Exempting cellulosic biofuels from the 10¢ per litre federal excise tax on gasoline would directly contribute to meeting the government's goal of creating economic growth in a fiscally responsible manner, while reducing GHG emissions.

Finally, we would propose that biofuels made from waste be eligible for the capital cost allowance tax incentive for clean energy production.

The accelerated capital cost allowance for clean energy generation under class 43.1 and class 43.2 includes a variety of equipment that generates or conserves energy by using renewable energy such as wind, solar, and fuels from waste, such as landfill gas. It does not include equipment like ours, which focuses on the production of liquid transportation fuels from waste rather than stationary energy.

In conclusion, Enerkem's technology and facilities offer Canadians a sustainable alternative to waste landfilling and incineration, while helping diversify our energy mix and making greener everyday products.

We sincerely feel that clean technology like ours has the potential to create more wealth at home and to provide a healthier and more sustainable environment for Canadians.

Thank you.

3:50 p.m.

Conservative

The Chair Conservative Harold Albrecht

Thank you very much.

We'll move now to our video conference and Theresa McClenaghan, executive director, Canadian Environmental Law Association.

Welcome, by video.

3:50 p.m.

Theresa McClenaghan Executive Director and Counsel, Canadian Environmental Law Association

Thank you very much, Mr. Chairman.

Thank you for inviting CELA to appear before you today.

As I think many of you know, the Canadian Environmental Law Association is a 43-year-old, not-for-profit environmental organization, formed to use law to advance environmental protection and to advocate for systemic environmental law reform. We're also a legal aid specialty clinic in Ontario. We represent clients. We provide advice. We advocate for law reform, and we provide public legal education.

We have an extensive history at CELA working on both solid waste issues as well as environmental law issues relating to industrial material in matters ranging from local to international scales. For example, we have frequently represented citizens groups and first nations with respect to landfill proposals, recycling and composting facilities, and other waste-handling facilities, often around making sure that those facilities, if properly sited, are also properly designed to alleviate environmental impact.

We've also been involved in many initiatives over the years, both provincially and federally, in respective amendments to waste-related legislation. Federally, this includes of course the Canadian Environmental Protection Act and other pieces of legislation that relate to marine waters, for example, such as the Fisheries Act.

We've also been very involved over the years in initiatives relating to Canada's participation in international conventions, such as the Basel Convention, which deals with the export of hazardous waste; the Stockholm Convention on Persistent Organic Pollutants; the Rotterdam Convention, which requires prior informed consent; and the Minamata Convention on Mercury, which Canada signed last year, to name a few.

Our involvement has, for example, included advocacy for Canada to agree to include asbestos in the Rotterdam Convention. Asbestos is a material of relevance to your study today. We'll make very brief remarks, but we're happy to answer further questions on these conventions. Ms. de Leon, who is with me, works extensively on all these conventions with many other NGOs, internationally and nationally.

CELA has also prepared reports over the years based on the national pollutant release inventory, the NPRI, which was established under the Canadian Environmental Protection Act or CEPA.

Today we wish to focus on some areas of our work that we hope will be of assistance to you in your current study. First, in general, one area we look at is hazardous and toxic materials. In certain cases, such as with asbestos and with mercury, there are extra hazards, and policy-makers have to ensure that we're not creating new problems as we handle those materials. For example, the dangers of asbestos are well known, but asbestos is likely still going to domestic landfill in Canada, in poorly controlled conditions, and the issue of how it's being handled en route also raises questions of public safety. Similarly, mercury and other materials can be released when products become garbage, as in the case of mercury switches in cars, and we'll discuss vehicles more in a moment.

In general, we advocate for cradle-to-cradle solutions, that is, to plan ahead, right from the design stage of production, to reduce the use of materials, to reduce and eliminate the use of hazardous and toxic materials specifically; to increase the reuse of materials and parts; to increase recycling of materials, parts, and substances; and to utilize those same materials, parts, and substances in reproduction. The ultimate aim is to avoid landfilling and emissions to the natural environmental at all. We are, of course, a long way from that ideal today.

To this end, we have examined various proposals over the years to determine whether they are supportive of a cradle-to-cradle materials approach. Energy from waste, for example, can be inconsistent with that approach and we always want to examine it to determine whether or not it's disrupting the kinds of objectives we just outlined in terms of reuse and recycling. For example, we do support anaerobic digesters, which use the methane generated from manure and restaurant waste—Mr. Thurlow mentioned that a moment ago—because it not only decomposes and produces the methane that can be used for energy production, but much of that material is destined to be applied to land as a fertilizer. The anaerobic digesters also reduce pathogens in that material, making it much safer when it's land-applied, avoiding the kind of tragedy we had at Walkerton, for example.

Similarly, where we already have landfills that are generating methane as domestic garbage decomposes, we support installing landfill gas recovery systems and using that methane for energy production. Otherwise, the methane is emitted into the air as a greenhouse gas and has a significant nuisance impact to the surrounding neighbours from the odour. If it seeps into buildings, it presents a significant explosive hazard.

What we don't support is the wholesale diversion of our recycling programs and solid waste programs into burning these materials for energy. If taken, that approach has the potential to seriously disrupt materials reuse and recycling programs, in addition to the potential for hazardous emissions into the air.

In terms of biofuels and biomass, our general approach has been that those processes need to be examined in terms of their overall impacts and to ensure that they're not presenting new problems as they attempt to solve other ones. For example, when we've looked at biomass in the past, questions have arisen to make sure that soil health is maintained as straw is removed from crops and slashed from the forest. It's not a black and white answer to those kinds of questions.

I'll turn to a report that we thought would interest you today, which we conducted with the CAW, in 2011, around improving management of end-of-life vehicles in Canada. This was an in-depth report and is available on our website as CELA publication 784. I can also provide it to the committee, but unfortunately it is in English only.

When we examined the situation with respect to vehicles, we found a great number of existing issues and great opportunities as well. In Canada, 1.2 million vehicles are taken off the road every year. To look at the Ontario situation, for example, we know that of the Ontario portion of those vehicles, 40% or 35% are processed by certified auto recyclers who meet certified auto recyclers standards, but 65% are processed by other auto wreckers. We don't know how many of those other vehicles—400,000, in Ontario, and the rest across the country—are depolluted. I'll speak more about this concept of depollution in a moment.

There is great opportunity in terms of auto parts recovery and recycling, and we would like to specifically acknowledge a researcher, from the University of Windsor, who provided important information for our study. Susan Sawyer-Beaulieu conducted in-depth research on this topic.

As you can imagine, the parts that can be reused and remanufactured include everything from air conditioning compressors right through to batteries, catalytic converters, tires, and everything in between. It's not the case that everything has to necessarily be automatically sent to recycling, as a lot of these parts can actually be reprocessed and reused. That, in itself, presents great opportunities for material and energy savings.

In terms of depollution, the research and studies have shown that in particular, because of the complexity of vehicles, it's important to take a look at making sure that the process of dealing with those vehicles is not presenting new problems for the environment. It's removing all of their batteries, all of the fluids, the tires, the mercury switches, and any ozone-depleting substances, air bags, and so on. The parts are dismantled and separated into their streams, and the remaining parts, in many cases go to shredding, for recovery of metals in particular.

Federally there was a retire your ride program, which offered an incentive to turn in pre-1995 vehicles for recycling. That particular program ended in March 2011. One thing we noted about it, though, is that in order to receive the incentive, it did require that the vehicles be left with auto recycling operations that met certain protocols for dismantling. That's a useful piece to note. Incentives alone, without matching them with a performance standard, might not necessarily solve the problem in the way that it needs to be addressed.

I just want to talk about the—

4 p.m.

Conservative

The Chair Conservative Harold Albrecht

Can you try to summarize in about 35 seconds? Your time is up, but we'll give you a little more time to finish.

4 p.m.

Executive Director and Counsel, Canadian Environmental Law Association

Theresa McClenaghan

The potential for diverting the materials for reuse and recycling and for depollution is in the hundreds of thousands of tonnes per year.

Our research did divide that up across the types of materials. I won't belabour you with the statistics right now, but I will just say that while there is not a bad amount of metal recycling, the potential is still much greater. Also, the plastic recycling is very underutilized in terms of what's going on in Canada. As well, batteries, fluids, and the other hazardous materials need much more attention than is currently taking place, because of the fact that we saw that 65% of the vehicles are not necessarily going to certified recyclers.

Thank you for the opportunity to present to you today. As I indicated at the outset, if the committee has questions on some of the other specific areas of our work, we'd be happy to provide that, but we thought it would be useful to focus on a really specific sector that we had studied in depth.

4 p.m.

Conservative

The Chair Conservative Harold Albrecht

Thanks, Ms. McClenaghan. If you did run out of time on the things you wanted to say, you may have an opportunity to weave those into your responses to our committee members during their questioning.

We're going to begin now with you, Mr. Carrie, for the opening question. You have seven minutes.

June 10th, 2014 / 4 p.m.

Conservative

Colin Carrie Conservative Oshawa, ON

Thank you very much, Mr. Chair.

I want to thank the witnesses for being here as we are looking at the study of technological innovation.

I was extremely intrigued, Mr. Thurlow, when I was reading through your précis. One of the parts you noted was that you can convert agricultural waste, forestry residue, and even solid municipal waste into advanced biofuels, chemicals, and other valuable co-products.

I wonder if you can give us an idea of how the process actually works with the innovation of these new technologies. How is it working? Can you walk us through the process?

4 p.m.

President, Canadian Renewable Fuels Association

W. Scott Thurlow

I can't do it personally, but my members certainly can.

There are two different types of technologies. One is thermochemical based. The other one is biologically based. I'll let Marie-Hélène talk about her process.

The other type, quite frankly, is to create an environment whereby agricultural residues or any source of carbon can be broken down through enzymatic means at a molecular level and converted into something that, as a chemical building block, can be forwarded on to anything else. It doesn't necessarily have to be fuel.

There are two important steps. The first is that the feedstock has to be pre-treated in such a way that it can easily be digested by either the thermochemical or the biological process. That step is incredibly capital intensive. The second what I'll call “issue” is getting the feedstock, whether it's biomass, municipal solid waste, corn stover, or whatever, to the facility in a way that's economical.

Do you want to be more specific, Marie-Hélène?