Evidence of meeting #50 for Natural Resources in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was technology.
A recording is available from Parliament.
Liberal
Founder and Spokesperson, Canada Action Coalition Ltd.
Yes. In looking around the world at other jurisdictions, as Peter mentioned for Scotland, I think there are other examples out there of how we can apply government assistance and innovation to commercialize new technologies and to get some of those technologies over the hump of that burden of proof.
I think it's also important that we look at making our industry more competitive, especially in benchmarking what we're doing up here against the United States. That's our number one market and our number one competitor right now. How can we create jobs? Also with those increased revenues, we can use those revenues to continue to diversify.
Founder and Chief Executive Officer, CarbonCure Technologies Inc.
I'd like to answer. Can you hear me?
Liberal
TJ Harvey Liberal Tobique—Mactaquac, NB
Absolutely. We can hear you, and I think it's really relevant to what you raised originally, so by all means, go ahead.
Liberal
Founder and Chief Executive Officer, CarbonCure Technologies Inc.
Just to make it clear, that $400 million was venture capital, on commercial terms similar what you find from any other venture capital funds you would find in Silicon Valley or around the world. We've gone through the process of grants and then VC, including BDC, who was the recipient of the bulk of venture capital investment in this last budget.
Really, what I was focusing on is that VC money is very expensive, as required, because venture capitalists are investing in high-risk enterprises before they're commercial. What is required, though, is that in the valley of death the best money to earn is customers' money—sales—because it's more than just the capital you're receiving. While that does have some overlap with VC, there are so many other added benefits from sales. I was trying to make the point that what would be required would be to incent industry to become customers, to adopt these technologies, and to use their expertise to take the best clean technologies available—
Liberal
TJ Harvey Liberal Tobique—Mactaquac, NB
In your specific case, you mentioned that you have two concrete plants that have already adopted that technology or that have test-run that technology for you. Would you say that where your need lies as a development company is more in the branding and marketing, to allow you to further increase your sales and get more people to adopt that technology? You've already basically proven the technology.
Liberal
Conservative
John Barlow Conservative Foothills, AB
Thank you very much, Mr. Chair.
I thank all the witnesses for taking the time to be here and for giving us some good information.
Mr. Battershill, you talked a lot about how we're communicating things and some of the impressive innovation and technology advances that we've made already in Canada. Ironically, you talked about $1 trillion in resource revenue over the next 20 years, and I'm wondering if you can recalculate that number after yesterday's budget's eliminating the exploration tax credit. I bet you it's not going to be anywhere close to that.
In my riding, I have Blackspring Ridge, an Enbridge operation of 170 wind turbines. I have 60 municipalities that are working together to do an energy-from-waste program. I have Drake Landing, a solar geothermal community. They've done all of it. You talked about the Xprize and MEG Energy's HQ. We had them in a couple of weeks ago. The energy sector—the oil and gas sector, the oil sands—has reduced its GHG emissions by 30% over the last 20 years. They have done all of these things without a price on carbon. They have done these things because it makes them competitive, it makes them efficient, and it's the right thing to do.
Can you talk a bit about why these innovations are happening? They're doing this on their own in the private sector. I don't think a carbon tax is all of a sudden going to make them innovate, because they're doing it already.
Founder and Spokesperson, Canada Action Coalition Ltd.
Thank you very much, Mr. Barlow.
When you look at what's been happening in the oil sands and Alberta energy industry, there is a constant push to reduce their environmental impact. That is always additionally good for the bottom line. There has been enormous technology innovation such as SAGD, steam-assisted gravity drainage, which is applicable to 97% of the oil sands land area. That was a technology developed through the Alberta Oil Sands Technology and Research Authority several decades ago, and a great example of government assistance to get an industry off the ground and to help innovate and unlock this technology in the first place.
Since then, we're seeing the steam-to-oil ratios for many of these projects continue to decline. Less steam is needed to get the oil out of the ground, and that creates less greenhouse gas emissions. There has also been an incredible push to find other technologies, specifically with solvents. Also, in the oil sands industry, they are using the waste heat to produce electricity, so you actually have some of the greenest barrels of oil in the world coming out of the oil sands in Alberta.
If we're going to do anything in the oil sands industry and you're going to tax it, it's very important that you reinvest that directly back into the industry so that it has the assistance to continue to innovate. We need policies so that the industry knows, as they continue to lower greenhouse gas emissions and lower environmental impacts, that there is going to be a market for their products, and they're going to have the assistance of all governments getting our products to market.
The fact that this committee exists is a great example of how proud we should all be as Canadians about how we produce our oil and gas, how we treat our people—worker safety—and how we respect human rights in this country.
Conservative
Conservative
Shannon Stubbs Conservative Lakeland, AB
Thank you.
Thanks to all the witnesses for being here. Thanks to the member from Edmonton, too. That's right near my riding, and the hometown of our leader. It's great to have you here as a symbol of the kind of innovation that takes place in Alberta every day—and has for decades.
I'd just like to follow up on some points my colleague made. I'm glad that every time we have a discussion in this committee about the importance of not pitting one sector against the other.
Cody, I'd like to ask you to expand, if you would, on some of the specific examples of oil and gas innovation and technologies that have led directly into the development of renewable and alternative energies. And if you want, I'd invite you to comment on perceptions of energy development in northeastern Alberta, where I'm from, and make any comments you'd like on how the work in northeastern Alberta and across Canada in energy development compares to other countries, and other top oil reserve countries around the world.
Founder and Spokesperson, Canada Action Coalition Ltd.
Thank you very much, Mrs. Stubbs.
It's incredibly important to benchmark how we do things in Canada, and the global big picture of oil and energy demand, through the success of our businesses. Energy demand for everything is going up. Some of our big pipeline companies have been able to diversify into other forms of energy production such as solar, wind, and geothermal. There are a number of fantastic success stories.
We should be diversifying as things are getting better, rather than trying to diversify and adding costs and regulation when things aren't improving. We need to make sure that our industry can compete globally in a lower commodity price environment. That means benchmarking what we're doing against our competitors and around the world.
A great example would be that Canada is ranked number two in the world for the social progress index. We're importing oil right now in eastern Canada from countries that are way down the list, that do not have the same values as us, and do not respect human rights the same way we do.
I would also like to say that if you look back at the oil sands and when the first barrel was produced, you see that they've gone through a number of different evolutions in how production happens. In mining, it used to be with a large bucket wheel; now it's truck and shovel. The newest oil sands mine is producing oil that's within a couple of per cent of the average barrel imported into the United States, using a paraffinic froth treatment process. Technology, innovation, and research are driving the oil sands.
We have a huge opportunity as well in this country with liquefied natural gas. This has contributed immensely to our quality of life and to our social services—paying for our doctors, teachers, and front-line responders.
Liberal
The Chair Liberal James Maloney
Unfortunately, we're going to have to stop. A vote has been called in the House, so we have to adjourn the meeting. I apologize to the witnesses. I very much thank you on behalf of the committee for taking the time to be here, although we've had to shorten the proceeding today. There's no choice in the matter.
Thanks very much.
The meeting is adjourned.