Thank you, honourable Chair, vice-chairs, and members. I am excited to present here today. You'll notice I don't have any briefing notes. The story I have today is a success story in Canada about innovation in the traditional forest industry. It directly falls within your mandate of how to tie in the traditional forest industry to innovation, new products, new markets, and new demands. Today it's a case study of a company called Ensyn that represents itself as a new engineered wood products business in a traditional industry.
For example, it's just 45 minutes up the road, and there's an open invitation to the committee—I don't know if you guys do field trips, or the individual members do field trips—and I'd be happy to host you, 45 minutes away, at our facility at some later point in time.
What we do there is we receive approximately 50,000 tonnes of sawmill residue annually at that facility. There are about 1,000 trucks, so it's not a huge facility. Instead of using these residuals to make MDF boards, mouldings, or even pellets and other engineered wood products, we make liquid wood. Of anything today, think of me as the liquid wood guy. We produce about 13 million litres of liquid wood every year. That's roughly 500 tanker trucks going down the highway and delivering to customers.
I should note that we're synergistic to the existing forestry industry. We don't offer a competitive environment to fibre. We are synergistic with the mills where they are challenged by the transition in the forest industry with respect to what we are doing with all our residues. We have to make sure we have a home. There's an ecosystem for a local mill, and if that ecosystem is interrupted with respect to supply in different areas, it challenges the survival of the mill as a whole. We offer a solution by taking those residuals and working into the synergy—again, we have application throughout Canada—of these mills.
We've run this technology for over 30 years. It's a Canadian technology out of western Ontario. Our founders are Canadian. We're proudly Canadian. In effect, the technology is relatively simple. We take wood, and we expose it to heat in the absence of oxygen. Of course if you have oxygen, you have combustion. In the absence of oxygen, it vapourizes the organic chemicals. We take the vapour and condense it into a liquid barrel of wood. By yield, we achieve 70% by weight of the original wood to the liquid wood product.
Now you might quickly determine that the liquid wood represents a carbon-neutral renewable fuel. We don't have to talk about the importance of carbon neutrality and carbon reduction here, recognizing its value to the Canadian people and to the sustainable future of Canada, but it has the benefits of liquid fossil fuel. You can imagine a liquid wood, comparing it to a liquid fossil fuel. You can store it in a tank, you can pump it in a pump, you can burn it in traditional types of burners.
For example, the production of the liquid wood we produce here just 45 minutes up the Ottawa valley from Ottawa Valley Wood is delivered to hospitals, schools, and city and district energy centres. All renewable customers for the liquid wood energy product, however, are U.S. customers. The U.S. renewable fuel standard creates an economic environment where liquid wood can economically compete with fossil fuels in that environment.
The use of liquid wood by these customers is credited to the U.S., however. It's produced in Canada. The carbon reduction credits, however, go to the jurisdiction where it's consumed. Despite being produced in Ottawa and being produced in Canada, the credit for the carbon reduction aspects of the use of that fuel goes to where the customer is located. It all goes to the United States for it to meet its renewable energy and carbon reduction commitments.
Now you might say, David, you've got 13 million litres. We're oversold. I can't produce enough product to meet customer demand out of our facility in Renfrew. I'm pleased to say that, together with the support of NRCan's SDTC, we are just completing construction of a $100-million facility in Port-Cartier, Quebec, which is just outside of Sept-Îles. That facility will generate approximately 42 million litres of additional product, bringing our total Canadian production capacity to roughly 55 million litres a year.
Again, that's a significant impact for a carbon-neutral fuel. Again, we're integrated into a forestry company in that region called Arbec; also Groupe Rémabec, just out of the Lac Saint-Jean region, is part of that ownership structure. We integrate with the mills synergistically into that marketplace, recognizing again that the mills are threatened by the inability to get rid of residual fibre.
Unfortunately I also have to say that 100% of that production is destined for the United States. The markets and the renewable fuel standard in the U.S. creates a global economic environment for the competition of renewable fuels so that in effect it's just as if you made a two-by-four you'd sell it to the highest market. Our liquid wood product is no different. We make sure we get the maximum value, maximum return, for that gallon. Right now it's in the United States.
We are very thankful for the capital support we've had from the Canadian government, and the Province of Ontario, as well as the Province of Quebec in building those capital facilities and facilitating that to happen. The challenge we have now is how do we take that capital and allow that product that's developed by that capital to be used in Canada?
I'm happy to announce that our first installation of a boiler for district heating will happen on Heron Road in a federal government complex. It's a demonstration facility at this point, but we hope it's a start of many things to come, whereby our liquid fuel from our Renfrew facility, our Ottawa valley facility, will stop in Ottawa where some of the product can be used, instead of driving through Ottawa, and hopefully lend a mandate to the federal government to expand on these things. We provide for rural economic deployment of our resources and our facilities. We have a tremendous socio-economic impact as well as our carbon reduction impact in this area.
Again we're very thankful for this committee. I don't need to tell you the state of the forest industry, that innovation is required, and again as a case study it's happening. I hold an open invitation to be able to share more about what we do, how we do it, our customer base, our solutions, and our partnerships.
I thank you for your support, and I continue to look at opportunities by which our product can be used in Canada.