Thank you for the question and I can certainly answer it.
It depends on the price you put on CO2 emissions. Life cycle analysis is used worldwide to determine the carbon intensity of each fuel.
For example, I was saying that our project in Varennes would produce carbon-negative biofuels. If California, for example, imposes a cost of $200 U.S. per ton of CO2 emitted, and in Canada we have no regulatory framework that puts a price on CO2 emissions, I'm going to sell that fuel in the market that pays the most for every decrease in units of carbon intensity.
This is all comparable to what happens with gasoline. Let me give you an example. Gasoline has a carbon intensity of about 98, depending on the market. The fuel we're going to produce in Varennes has a carbon intensity of -10. So the difference is 108, at $200 per ton of CO2 emitted. That is a profit for the seller of that molecule.
Right now, because there is no incentive to invest, when my partners—Shell, Proman, Suncor and the Quebec government—invest in an asset in Quebec and they sell that low-carbon molecule in Quebec, they get a negative return on their investment and they lose money. So they are going to export it to Europe, the Netherlands, California or British Columbia, for example.