Thank you, Mr. Rajotte.
It is great to have the opportunity to be here in Windsor, Ontario, one of Canada's leading automotive communities and the home of Canada's automotive centre of excellence, Auto21.
The automotive sector continues to play an integral role in Canada's economy. It employs more than 90,000 Canadians, and automotive exports constitute one-third of Ontario's direct trade with the United States. Canada's strength in the automotive sector, including its skilled workforce and established manufacturing base, are now being leveraged for the next generation of innovative green automotive technologies. This includes the production of electric vehicles at Toyota's facility in Woodstock, Ontario, and the development of next-generation components and lightweight materials through R and D investments being made by companies such as Dana and Magna International.
Canada can also claim a leadership position when it comes to the manufacture of innovative natural gas technologies for heavy trucks and buses. Canadian companies currently supply natural gas engine systems to more than 20 different North American truck and bus manufacturers, including New Flyer and Motor Coach Industries in Winnipeg, Daimler in Mississauga, and PACCAR in Quebec.
The U.S. EPA SmartWay program, which encourages highway trucking fleets to adopt lower emission technologies, recently certified its first liquefied natural gas, or LNG, highway tractor from Peterbilt. This truck incorporates engine technology made in Delta, British Columbia, by the Canadian company Westport Innovations. Natural gas is the next wave when it comes to innovative, lower-emission technologies for heavy vehicles. Canada is well positioned to capitalize on market growth and increased demand in North America.
Speaking on behalf of the natural gas vehicle industry, I'd like to briefly outline three key benefits associated with the increased use of natural gas in transportation. And I would like to highlight private sector investments being made in regions across Canada.
The first benefit relates to fuel choice. Whether for goods movement, people movement, or personal transportation, Canadian businesses and communities could benefit from having a choice of fuels. Right now, crude-oil-based fuels supply 99% of the energy used in the transportation sector. There is a lack of competition in the market. Natural gas is a cost-effective alternative. Increasing its use can leverage an abundant domestic resource.
Canada also has some high-density corridors where having access to a lower-cost fuel could be particularly advantageous and could create competition in fuel choice. For example, Windsor to Quebec City is the fourth-busiest trucking corridor in North America. This month, LNG highway trucks in the Robert transport fleet will begin operating along this corridor between Boucherville, Quebec, and Mississauga. New private sector investment supporting this project exceeds $16 million. This project marks the beginning of Canada's first smart trucking corridors. Additional private sector investments are being made in fleet projects in Alberta and British Columbia this year.
The second benefit relates to jobs and the economy. Using natural gas in transportation would open up a new market for an abundant Canadian resource. Increased sales of natural gas for transportation could contribute to economic strength in three ways. First, it could displace imported oil and improve Canada's balance of payments. Second, it could create new demand for natural gas to help offset declining exports to the U.S. And third, it could trigger economic activity in the natural gas fuel vehicle and station supply chain.
Alberta's Ministry of Energy estimates that for every additional billion cubic feet of Canadian natural gas produced, $17 million in direct and indirect benefits accrue across the Canadian economy. My colleague, Mr. Sam Shaw, of Encana, will be speaking in more detail on this point.
The final benefit relates to the environment. Natural gas can also help achieve the 2020 carbon goals. If 5% of new vehicles sold over the next 10 years were natural gas, the benefit would be one megatonne, and this equals the benefit from 2% biodiesel use.
In closing, committee members may have seen that Canada was just recognized as the top ranked country for business in the world. One of our members, Shell Canada, a global energy player, recently selected Canada for its first major investment in a liquefaction facility just west of Calgary to bring LNG into the transportation market. This investment of more than $50 million is part of a worldwide strategy for Shell, but it is encouraging and noteworthy to see that Shell chose Canada first.
On behalf of the natural gas vehicle industry, we look forward to continuing to partner with the Government of Canada to accelerate private sector investment related to natural gas for transportation.
Thank you.