Thank you for the opportunity to present a proposal we believe will drive clean tech investment in Canada.
If nothing else, I'd like to leave you with an example of how Canadian innovation can take root in our domestic markets, deliver environmental benefits, and create jobs to serve local energy needs and create export opportunities.
Enbridge is Canada's largest liquid pipelines distributor and largest natural gas distributor, but we're also an investor in renewable energy, such as wind, solar, and low-carbon technologies like fuel cells.
Today I'd like to highlight a global first. We call it our hybrid fuel cell technology. It's a Toronto pilot project that makes ultra-clean electricity in the cities without burning fuel or creating harmful air pollutants.
While I'll explain the technology shortly, our point is that to take this innovation to the next level, like more mainstream wind, we must remove barriers to investment. By removing barriers, first, we need to do an expanded focus on a wider portfolio of technologies if Canada is to reach its potential for sustainable energy. This portfolio would include both renewable and low-carbon sources of clean tech. For many years, Canada successfully stimulated investment in a select group of renewables like wind. We need to build on that success and stimulate investment in other low-carbon, clean tech if we're to meet our environmental commitments.
Second, we have a need—and one might say an obligation—to ensure Canada tracks investment to these next-generation low-carbon technologies. Unlike more established renewables, which in many cases are imported, we can establish a leadership position in the development and deployment of these emerging technologies. We learn by doing and using these technologies so that Canada can strengthen its ability to innovate, improve upon, and advance research and development for subsequent breakthroughs.
Enbridge believes both issues are addressed through our ask today: that is, that Canada establish an investment tax credit for eligible clean technologies. Fuel cells are only one such technology. We need look no further than the United States to understand the competitive investment climate for clean tech. The U.S. energy bill of November 2008 enshrined long-term commitments for solar photovoltaic and fuel cells with an investment tax credit of 30% or $3,000 a kilowatt, whichever is less. A Canadian investment tax credit would make us competitive with policies in the U.S. and in other jurisdictions like Germany, as well as the United Kingdom. It would create an attractive investment environment for these technologies.
I'll talk a little bit about our hybrid plant that combines fuel cells with a second low-carbon technology. The combined system captures waste pressure energy off our pipeline and turns it into electricity without incremental emissions. Simply put, natural gas is travelling a great distance across Canada. The first thing we do, as a utility, is we squeeze that gas through a valve to reduce its pressure. By using technologies like this, we can reduce that pressure but generate useful electricity that's sent to the grid like a wind turbine. In essence, gas goes in, gas goes out at a lower pressure, and electricity is available to the homes and businesses in that neighbourhood.
Fuel cells are like a continuous battery; they don't burn fuel, so they don't emit harmful air pollutants. Their very high efficiency means less carbon dioxide is generated per kilowatt of electricity. We built this plant on 22 parking spaces within 10 metres of a public sidewalk. It's quiet, clean, and has a low profile. If you have the package before you, you'll see I've provided a picture. This plant produces enough electricity for 1,700 homes. We could not have built one of our wind turbines in this type of urban environment.
Our ask of the federal government is to provide incentives to low-carbon, clean technologies to level the playing field alongside renewables. Since these technologies are relatively early in commercialization, it would be helpful to use policy tools that establish a competitive investment climate with the U.S. For fuel cells, that investment tax credit is 30% or $3,000 per kilowatt, whichever is less, but as industry demonstrates its commitment to invest in these technologies, a more predictable growth curve exists. At that time, government and industry can establish specific program support such as the ecoENERGY renewable power program. Until that time, we can learn by doing through a relatively simple amendment to the tax code.
Here is a final thought. This hybrid fuel cell is just one example of Canadian innovation attracting attention in the U.S., Europe, and Asia. Unlike other investments Enbridge has made in renewable technologies, which are generally imported, we've involved many Canadian partners in the development. These include companies like Satcon Power Systems in Burlington, Bristol Canada, a supplier in the greater Toronto area, and Schneider Canada in Mississauga.
Our partners and Enbridge have a vision: building a domestic market that strengthens Canada's potential for selling energy innovation abroad.
Thank you for your time. I hope this was informative.