Good morning. Thank you for having me here today. It's an honour to be brought from Detroit, Michigan, across the border, to talk about propane auto gas, one of my passions.
I'm a vice-president with Roush Enterprises. We are a 3,000 employee company based in the United States. We've been around for 36 years with more than $300 million in sales. We are Ford's premier powertrain development company, and as you look at my first slide, you'll see that we're a very diverse organization involved in performance, life sciences, and industries—and I'll talk about alternative fuels here in a second.
One of the issues in our business and the alternative fuels business over the past several decades has been the types of companies that have brought solutions to the marketplace not having the staying power to continue to service customers like Canada Post, once they sell the vehicle, on through the evolution of that vehicle over eight to ten years of its life cycle.
Roush has been here for 36 years, and we'll continue to be here for a much longer period of time, employing our diverse solutions for our customers to make the experience even better. As it pertains specifically to propane auto gas, we formed my division, Roush Cleantech, roughly three years ago with a specific focus on propane auto gas and alternative fuels such as natural gas. We believe in the United States, and have seen great success with propane auto gas, and have put more than $30 million U.S. into developing this technology for deployment in the United States. All our technology and products are certified to United States standards, and one of the issues I'll talk about in my presentation is how we can bring this product to market here in Canada.
Some of the successes we've had in the United States obviously centre around cost. In the United States, and similarly here in Canada, propane costs typically more than 40% less than gasoline per litre. I need to speak in litres and not gallons here in Canada. We have the economic benefit of the lower cost of the fuel, and we also have the emissions benefit, from lower greenhouse gas, NOx, and carbon monoxide emissions.
From a national security perspective, most of the propane we use here in North America comes from North America. So we're not sending our dollars overseas to folks who don't care for us very much.
Also from a perspective referenced in the March 6 presentation by Jim Facette to the committee, 83% of the propane we use here in Canada comes from natural gas exploration. So again, these gaseous fuels have a firm place here in Canada.
The support of federal and state initiatives down in the United States has also helped folks like Canada Post, UPS, Frito-Lay, and Coke to adopt technologies like propane, natural gas, electric, and hybrids. And as you see on the next slide, several fleets in the United States have adopted the propane auto gas technology. These are large Fortune 100 companies such as Sears, ARS, ThyssenKrupp, DirecTV, Frito-Lay, Pepsi, Veolia, and Blue Bird, the school bus company.
Many folks ask what's holding us back from further mass adoption, and when you look at the next slide you will see that we consider the alternative fuel fantasy. In other words, is this reality, or can we deliver it today? The answer is we can. As I referenced before, the fuel costs 40% less. It comes from North America. The performance is Ford's powertrain development company. We calibrate our technology, and it's OEM certified and an OEM warranty is in place, so the horsepower and torque are equivalent to the gasoline vehicle that we convert.
As for service, the warranty coverage and the diagnostic equipment work just as they do on a gasoline vehicle.
And with regard to refuelling, most people aren't aware that propane is the third most common engine fuel in the world. In the States we have more than 5,000 locations for fleets to get fuel. I believe here in Canada that number is between 2,000 and 2,500. It has the lowest cost of infrastructure of any fuel, gasoline and diesel included. Again, we talked about the emissions briefly before.
To be really quick on our technology—and I appreciate Steve's comments from an end-user perspective—but when we got into this market about five years ago, we wanted to understand what went right and what went wrong with fleets. One of the major issues was cold start issues, which is obviously a potential concern in Canada; then horsepower and torque and performance of that vehicle; and how that technology is integrated into the vehicle itself. We have a dedicated liquid injection technology so that the vehicle only runs on propane, keeps it under low pressure all the way through the tip of the injector, and delivers the benefits I referenced earlier, including no issues with cold start and no issues with horsepower and torque.
Not to bore you with the next slide, it just shows you how the technology integrates into the vehicle seamlessly from an end-user perspective.
Then the next slide talks about the variety of vehicles that we have brought to market. There's everything from a commercial perspective related to Ford: trucks, vans, school buses, and cutaways. For fleets operating here in Canada, we believe that we have a host of solutions that can be adopted immediately. We're shovel ready.
On the economic impacts of this technology, as was referenced in Mr. Facette's presentation on March 6, the propane industry impacts the Canadian economy by $10 billion per year. There are jobs supporting over 20,000 Canadians, and there's a benefit of almost $900 million in annual taxes and royalties paid back to the government. We talked about the domestic aspect and the national security aspect as well. I just wanted to make sure that we hammered that point home, that instead of sending our money overseas for foreign sources of energy, we've got it right here in Canada as well as in the United States.
We've been talking about coming to Canada for several years. As a matter of fact, I remember talking to Steve a few years ago about the issues pertaining to why Roush has not brought our technology to Canada. We're an engineering company. We have some struggles with the rules and regulations and testing standards to make this work here. We're not afraid of spending money to bring the technology to Canada, but we'd just like to have a clear goal line and a clear path of success.
Getting early customer adoption and finding some fleets are important, and there are obviously some here now. Folks like Frito-Lay, Coke, Canada Post, UPS, and Purolator clearly want to adopt the technology.
Then, as Steve referenced, it would be helpful to get some support incentives, rebates, tax credits, and access to HOV lanes. Again, from my perspective, we don't need those to succeed, but they would be nice to stimulate the market early on here in Canada.
With regard to return on investment, I've got a couple of iCharts in litres here for you to analyze. This clearly shows, with our conversion technology, on any E-series van running an equivalent number of kilometres over the life cycle that the payback is there for fleets to convert to propane autogas.
We talked about the economic impact of propane, amounting to almost $28,000 in savings from running that vehicle on propane autogas. And the emissions benefit from running the vehicle on propane over its life cycle is almost 38,000 fewer kilograms of CO2.
In summary, we believe that there's a huge opportunity, not only for us at Roush but also for you and the Canadian government to use a Canadian natural resource to power your public and private fleets. We do believe that that will carry over to the consumer market.
We strongly believe that fleets such as Canada Post and UPS and folks like that will help build infrastructure that consumers can then utilize as it's built out. We need government support to streamline the certification process for this. It is a job creator. We've got a company here that we use on another set of our business, Farmbro. It's a high-quality partner in integrating and installing this equipment.
Training service centres is a workforce development opportunity.
Then there is the strategic planning to help public and private fleets migrate from foreign sources of gasoline and diesel foreign sources of energy.
I very much appreciate the opportunity to be here in front of you today and I look forward to questions afterward.