Natural Resources committee  Thank you, Mr. Chair. Good afternoon. My name is Dominique Boies, and I am the chief executive officer of Enerkem. Thank you for inviting me to meet with the committee today. I am pleased to contribute to your study on the future of the low-carbon and renewable fuels industry.

Natural Resources committee  All right. Canada should adopt regulations that mandate GHG reduction measures in the transportation sector, establish a clear pricing system and set out penalties for non-compliance. In conclusion, I want to repeat what I said earlier: Canada can and must adopt ambitious GHG r

Natural Resources committee  I'm happy to attempt an initial response. Mr. Verlez can then take over. Clearly, a regulatory framework encourages good behaviour. Let's take the example of a big oil company in the Netherlands or the United States investing in production assets like low-carbon biofuel. If they

Natural Resources committee  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

Natural Resources committee  Let's take ethanol as an example. In Canada, ethanol sells for 92¢ a litre, depending on current market prices. That includes a 25¢ fee required under the Clean Fuel Standard. In California, the price is $1.50. As you can see, there is still a difference.

Natural Resources committee  Yes, you understood it very well. The best way to proceed is to use a standard measure, which is life cycle analysis. This measures the carbon intensity of each molecule that goes into a final product. If you use green hydrogen made from biofuels and not grey hydrogen, which is t

Natural Resources committee  You're absolutely right. If you compare the cost of producing green hydrogen to the cost of producing hydrogen through steam methane reforming, there's at least a $2 difference per kilogram. Therefore, it's impossible to compete in the same market.

Natural Resources committee  We don't produce hydrogen. In our Montreal facility, we will be importing hydrogen that will be produced by Hydro-Québec in the adjacent electrolyzer that will be built.

Natural Resources committee  Yes, I know, but it's confidential.

Natural Resources committee  Yes, because now you need to—

Natural Resources committee  Several existing vehicles could be used. I'm thinking of the tax credits that have been given to the wind industry, to mining, and to oil development, for example. These are well-known mechanisms. You also have flow-through shares and the benefits that come with them, the tax con

Natural Resources committee  What I meant is that we're importing directly from a facility that will be on our side. Hydrogen has a high energy content, as some of the witnesses mentioned. By using hydrogen in our feedstock, that is, by adding this into our biofuels production, we basically double the yield.

Natural Resources committee  Exactly. It's green hydrogen produced by hydroelectricity.

Natural Resources committee  I'm sorry; I'm not sure I understand your question.

Natural Resources committee  We're always trying to be very proactive and make sure that people understand what we're doing and the type of product we want to bring to market so that we can appreciate which carbon intensity is going to be attached to that end product and the profitability that we're going to