Thank you.
Mr. Chair and members of the committee, my name is Fred Ghatala. I am the president of Advanced Biofuels Canada.
Our association is the national industry voice for producers, distributors and technology providers of low-carbon and sustainable fuel replacements for gasoline, diesel, marine and jet fuels. Our members operate over 45 billion litres of low-carbon fuel production capacity globally and are leading suppliers of renewable and low-carbon fuels in our domestic marketplace.
Please forgive me for making these remarks in English only.
Biofuels connect Canada. Rural ridings grow the crops and materials that are processed into the biofuels that are used in ridings of all political stripes and that enhance energy security, improve fuel affordability and reduce pollution.
Canada is endowed with significant resource gifts of oil and gas and critical minerals. We also have the agricultural and biomass feedstocks, infrastructure and expertise to lead in low-carbon liquid fuels. Biofuels directly integrate into the liquid petroleum fuels that we use and will increasingly export to our trading partners around the world as we seek to create $1 trillion in new trade and investment deals. This makes Canada uniquely positioned to be both a clean energy superpower and a traditional energy superpower.
At its full capacity, our clean fuel sector contributes $17.8 billion annually to the economy, and we have room to grow. The biofuels sector supports over 66,000 jobs across agricultural, rural, indigenous and industrial communities. Biofuels make up more than 7% of our diesel and 10% of our gasoline.
In today's complex and unstable world, there has never been a more important time to have a thriving biofuels sector. In fact, biofuels are essential in the current geopolitical context. Surging crude oil and fuel prices are impacting Canadian drivers and our economy. At the same time, concerns about the reliability and security of fuel supplies mean that availability, not just affordability, is increasingly at stake.
To the question of whether biofuels in our fuel supply are helping or hurting Canadians in the midst of this current environment, the results are clear: Biofuels are dampening both price increases and price volatility resulting from an unstable geopolitical situation.
Canada has already identified biofuels as a strategic industry. The opportunity in front of us is evident. With the right alignment, Canada can build a globally competitive low-carbon fuels industry, strengthen domestic energy and economic security, expand value-added markets for Canadian agriculture—especially Canadian canola—attract investment, anchor it here at home and become a reliable supplier of all forms of energy.
To conclude, biofuels are already a connecting thread across Canada. They must also connect our parliamentarians. As political risk is the leading cause of turbulence in our sector, what is needed and appreciated is clear alignment among all political parties to provide longer-term certainty. Having a durable and secure domestic market helps our members grow to increasingly export clean fuels to our trading partners. With your help, we can capture this opportunity. The world needs more Canadian energy.
On behalf of the board of directors and members of Advanced Biofuels Canada association, I thank you for the opportunity to appear before this committee. I look forward to the discussion.