Power Breakfast: Powering the Future Economy

Speaker 1:                        [00:01:00] Ontario is committed to a clean energy future. Enbridge Gas is doing its part with innovative renewable natural gas, or RNG. You may think of wind and solar energy as renewable, but food scraps, farm waste and sewage can also [00:01:30] provide carbon neutral energy. First we collect waste into a digester tank. As it breaks down, we capture the methane released. Once the biogas is cleaned and upgraded, it's turned into RNG. It can then be added to the Enbridge Gas system to heat homes and businesses, power factories, and fuel transportation, helping Ontario reduce greenhouse gas emissions and manage waste more effectively. RNG is fueling the future in the fight against climate change. Learn more at enbridgegas. [00:02:00] com/RNG.

Jan De Silva:                     [00:02:30] Good morning everyone, I'm Jan De Silva, President and CEO of the Toronto Region Board of Trade. Welcome to today's webcast, the latest in our Power Breakfast series. One of the longest event series we've had at the board. [00:03:00] That's thanks to the dedicated and passionate Power Breakfast partners, presenting sponsor, Ontario Power Generation, platinum sponsors, Bruce Power and Enbridge, and supporting sponsor the Power Workers Union. Today, we're delighted to be joined by a special guest Ontario's Minister of Economic Development, Job Creation and Trade, the honorable Vic Fedeli. Before we get started, I'd like to begin by acknowledging that Toronto is home to diverse First Nations, [00:03:30] Inuit and Metis peoples. Though, you could be watching from anywhere the board's offices are located on the traditional territory of many indigenous nations. And as we talk today about the energy sector's future, reconciliation and indigenous talent should be part of those conversations.

                                           I'll also take this time to make a few opening notes. All board webcasts are supported by our principal sponsors, the Global Mail and Scotiabank. [00:04:00] A recording of today's event will be available at supportbusiness.bot.com, under webinars and videos. Select click here to switch stream, if your video is lagging or request help for any other technical issues. And finally use the Q&A feature to the right to ask questions of our panel joining later. With that, let me set some context for the minister's remarks. We invited the Minister of Economic Development [00:04:30] today because energy isn't just input costs for businesses. It's a major job creator and a massive contributor to Ontario's GDP. Our electricity sector alone is a 20 billion annual industry that employs tens of thousands of people. And we didn't just stumble into this position of strength. Forward thinking investments made over the decades have set us up to be leaders.

                                           This is [00:05:00] true that the energy set sector where Ontario's ability and willingness to think long term saw major projects develop here, like establishing the world's [inaudible 00:05:11] electric utility and building three nuclear power plants. But this is also true in related sectors like clean tech manufacturing or R&D. Taking these dominant sectors together, we're at the head of the pack nationally and globally when it comes to clean energy and tech. But [00:05:30] our lead is in jeopardy. A few weeks ago, US President Joe Biden announced a $2 trillion infrastructure plan with major chunks going to R&D around clean tech and sustain energy. And even domestically provinces like Alberta and Saskatchewan are pivoting more of their skilled workforce toward the clean energy space. So if we want to maintain our head start and have made an Ontario clean energy solutions, help drive our economic recovery, [00:06:00] we have to continue pursuing what's next.

                                           The province has made some great moves in this regard, including major electric vehicle investments announced in 2020 and the creation of $400 million invest Ontario fund in last month's budget. A fund with a specific focus on advanced manufacturing and technology. As markets around the world recommit to sustainable zero emissions futures, these investments [00:06:30] will make Ontario or make sure Ontario remains at the leading edge of commercializing, scaling and exporting solutions. To tell you more about these and other economic drivers. I'll turn it over to our frequent board guest and advocate for Canada and Ontario's competitiveness minister Fedeli. Welcome minister.

Hon. Vic Fedeli:               Thank you very much, Jan. And thank you to the Toronto Region Board of Trade for organizing this again [00:07:00] today. It's great to be here with all of you to talk about Ontario's leadership role in clean tech innovation. We have a lot going for us when it comes to building a greener future. Ontario's clean tech sector is incredibly diverse with strengths in storage, water technologies, renewable energy, hydrogen, industrial biotechnology, smart cities, and environmental engineering services. Now, our thriving clean [00:07:30] tech sector enables larger industries such as auto, chemical and steel to strengthen their competitiveness by improving efficiencies while reducing the environmental footprint. Clearly there are a lot of really good reasons for us to build on our momentum in clean tech. So today let's talk about two high growth areas, Ontario is already recognized for, nuclear energy and electric vehicles. [00:08:00] So we'll start with nuclear. Ontario is well known for developing expertise in nuclear energy and increasingly recognized for our early leadership in small modular reactors or SMRs. SMRs are nuclear reactors that produce 300 megawatts of electricity or less.

                                           They can support large established grids, small grids, remote off-grid communities and resource projects. Earlier [00:08:30] this month, the premiers of new Brunswick, Saskatchewan, Alberta, and Ontario jointly announced the results of a feasibility study that concluded that small modular reactors could support domestic energy needs, curb greenhouse gas emissions, and position Canada as a global leader in this emerging technology. We also welcomed Alberta in joining a memorandum of understanding between this group of provinces to work together, to [00:09:00] advance SMR technology. Look, this is a global market that has the potential to be incredibly lucrative. In fact, the global SMR market is estimated to be worth more than $150 billion by 2040. And we're already ahead of the curve and we're well positioned to be a major player in the global deployment of SMR technologies. We have a real opportunity to anchor high skill jobs, [00:09:30] intellectual property and supply chains right here in Ontario. The conference board of Canada's research indicates that building and operating on grid and off grid SMRs would create tens of thousands of jobs and contribute billions of dollars to the country's economy.

                                           So Canada's strong domestic supply chain is a critical factor for the success of SMRs and will be valuable to [00:10:00] SMR deployment. And that includes Canadian, small and medium size nuclear suppliers, uranium mining and processing, and world leading nuclear research, which compliment the capabilities of Canada's manufacturing and engineering companies. So SMRs have the potential to generate clean low cost, reliable energy. And that perfectly aligns with our governments made in [00:10:30] Ontario environment plan to continue reducing greenhouse gas emissions, help communities and families prepare for climate change and balance a healthy environment with a healthy economy. And certainly the end of coal fire generation in Ontario led to the single largest reduction of greenhouse gas emissions across our entire country. Our electricity system remains more than 90% non emitting. I think it's 93% actually, [00:11:00] and it is one of North America's cleanest and that's something to be proud of and something SMRs can help build on.

                                           SMRs also have the potential to be deployed in remote off-grid communities as an energy source for resource projects. And this could benefit remote locations and businesses in the mining and manufacturing sectors, particularly in Northern Ontario, providing them with energy security and less reliance [00:11:30] on flown in diesel fuel. Additionally, SMRs could be used as an electricity source to create low carbon hydrogen. Something that Ontario is looking into as we are currently working on developing a hydrogen strategy for the province. Another space where Ontario companies are building momentum is electric vehicles. Last month, our government was very proud to lead a virtual delegation of [00:12:00] 18 of Ontario's most innovative auto-tech companies on a trade mission to Silicon Valley. It was a great opportunity to showcase our strengths on this internet national stage. And we have a lot of successes to highlight. It's pretty tough to beat this remarkable round of investment in Ontario auto assembly operations. $5 billion announced [00:12:30] last November alone, unprecedented in the history of Ontario and another billion dollars in January.

                                           That's $6 billion in only a few months. And those major commitments for electric vehicle production, they will be transformative. These are game changers for the province. For example, Ford Motor will transform their Oakville Assembly Complex into their global hub for battery electric vehicle production. [00:13:00] Fiat Chrysler is planning a major retooling of its Windsor assembly plan for more electrified vehicles. And you've heard from General Motors, their plans to refocus their [inaudible 00:13:14] plant to produce battery electric vehicle delivery vans. It's the FedEx van that was their prototype. These are very exciting announcements and real game changers. So our auto tech ecosystem [00:13:30] is uniquely positioned to lead the way on producing next generation of vehicles. Think about this. We are North America's second largest vehicle producer, just behind Michigan. But we're also North America's second largest IT cluster after Silicon Valley, but we're the only place that these two come together and work together.

                                           So we have nothing but [00:14:00] a great future ahead of us in terms of our electric vehicle design here in Ontario and production. And further to all of that, we have an abundance of the critical minerals in Northern Ontario required for electric of vehicle batteries. In fact, Sudbury, just down the street from where I am right now is home to the world's second largest sulfide deposit site, which produces the class one nickel required to manufacture battery [00:14:30] electric vehicles. And this positions Sudbury as one of only a handful of suppliers to the growing electric vehicle battery market. I look a little bit north to the town of cobalt, where they are processing cobalt. There's graphite in Hearst. There's lithium in Red Lake. These are the critical minerals that are going to direct our future. Ontario has so much to offer companies [00:15:00] in the auto sector and electric mobility, including those looking to expand their international presence.

                                           We're continuing to build on our momentum with a strong 10 year vision. Premier Ford laid out in driving prosperity, the future of Ontario's automotive sector. And that document outlines key actions our government is taking to support the auto sector. Our plan includes further reducing red tape, lowering business costs, [00:15:30] helping companies innovate and develop new technologies, investing in skills and positioning the sector for future growth and increased competitiveness. As Jan mentioned, we've also launched Invest Ontario. It's a new agency that will promote the province as a key investment destination, making Ontario more competitive while sending a strong signal to investors that Ontario is open for business. This is going to be the one stop shop [00:16:00] for business and investors. I call it a group of deal hunters and deal closers. This is an outside agency that will move at the speed of business, drive greater economic growth, support strategic domestic firms, and attract businesses from around the world to create good jobs here in Ontario.

                                           We're all working hard to make sure Ontario strengthens its global edge and that includes building [00:16:30] on our momentum in supporting the clean economy of the future. Because that's not only good for our economy, it's good for our environment. And this will ensure a thriving economy and clean air here in Ontario for generations to come. Thanks for the opportunity today, Jan, and to everyone.

Jan De Silva:                     Minister, thank you so much. And I know how hard you and your colleagues are working on the immediate now with respect to [00:17:00] the pandemic, but it's also so encouraging for us to think about what's next. And you've just laid out all the ingredients we have for success. And thank you. I think what's most exciting about it is not that we're leading in this piece or that piece, is that we've got all the pieces in the province. And there's recognition of how do we pull this all together to take advantage of this unfair competitive advantage, because we want to fully take advantage of unfair competitive advantages in our favor. So thank you [00:17:30] so much for joining us today. I know you can't stay. You've got to jump off to cabinet, but to build on the ideas you've brought forward, we put together a panel of energy experts who are representing major players in the sectors you've indicated.

                                           So thank you so much for joining us, and we will look forward to speaking with you soon. Here to kick off that panel is Sandra Dykxhoorn, the Director of Provincial Relations at today's presenting sponsor OPG. Before Sandra takes the screen, let's watch this video message [00:18:00] from OPG.

Speaker 5:                        Some have the power to sound the alarm. Many have the power to be heard. Others have the power to agree to solutions. Our power is our people. [00:18:30] Our power is experience, collaboration, ingenuity, grit. Our power allows us to set ambitious goals and net zero company by 2040 and a catalyst for a net zero economy [00:19:00] by 2050. We're walking the walk to a post carbon economy. Starting here in Ontario, our power is changing the world. OPG, where a brighter tomorrow begins.

Sandra Dykxhoor...:        Hi everyone. It's a pleasure to be here. And I'm very proud to be here on behalf of OPG as a presenting [00:19:30] sponsor for this series, which we've had the pleasure of working with the Toronto Region Board of Trade for several years on. And it's always stimulates great discussion on very important topics. Today, we're talking about the role of the clean energy sector that it can play in a post COVID-19 recovery and in achieving a low carbon future. OPG believes climate change is not the future, it's the present. And it's environment and economic consequences are already affecting the lives [00:20:00] of Ontarians. OPG is proud to have delivered the world's single largest climate change action to date when we stop burning coal in 2014, but there's so much more we can do. That's why in November, OPG announced our commitment to becoming a net zero company by 2040 and a catalyst for a net zero economy by 2050.

                                           These ambitious goals include the development and deployment of the first ever [00:20:30] commercial grid scale, small modular reactor as early as 2028, advancing electrification initiatives in the province, including personal EV charging infrastructure and helping transit electrification, including at the Toronto Transit corporation and other municipalities. We are also advancing work at our nuclear refurbishment projects at Darlington and Bruce Power is also [00:21:00] doing theirs in Bruce County, which contributes to billions of dollars in GDP each year. We're also exploring the production of low carbon hydrogen to support the province's development of a low carbon hydrogen strategy and economy.

                                           And finally, we're investigating negative emission technologies and exploring ways that we can continue to further reduce our footprint at OPG. We will create new [00:21:30] jobs and nurture new industries to make life better, not just for future generations, but for current generations as well. Currently, we employ thousands of jobs. Over 9,000 people work at OPG and we put thousands more to work across the province each day on our clean energy projects and throw our supply chain. The Darlington refurbishment project alone creates 14,000 jobs each year and boosts Ontario's GDP by almost $90 billion. And over [00:22:00] 200 split supply chain companies across Ontario are helping power the province's economy by creating highly skilled jobs and delivering high quality, innovative parts and services on this project. We've also partnered with indigenous communities across the province to build hydroelectric and solar projects. These groundbreaking development partnerships jobs, enhance [00:22:30] skills training, and provide lasting financial and economic benefits for the communities.

                                           We believe that OPG and Ontario has the opportunity to secure thousands more well paying jobs needed to secure a low carbon future. As a leader in manufacturing and innovation, Ontario has a very unique opportunity to leverage to one of the cleanest electricity sectors in the world, responsible for only 2% of Ontario's total emissions to create well paying jobs for [00:23:00] a net zero future. Currently the industrial transportation and building sectors represent approximately 87% of Ontario's overall GHG emissions. The transportation sector alone includes passenger vehicles, heavy trucking transit, and other modes contributes to more than 30% of emissions in Ontario. With the right policy framework in place and investments from public and private partners, there's significant potential.

                                           We know that the world is moving towards net zero by [00:23:30] 2050, and we know we will need more reliable, low emission power to achieve this goal. The electricity sector is key to enable deep electrification across the sectors, including transportation, agriculture, and industry in order to achieve our objectives. The question is, will we be ready? With our already clean grid, we believe we have the opportunity to lead. Thank you. And I'll hand this back to Jan, who will introduce and moderate today's panel. Thank you so much.

Jan De Silva:                     [00:24:00] Perfect. Thanks so much, Sandra, for that message. And thank you for OPG's continued support for this series. I'll now introduce the three leaders in the sector we've assembled to talk about how Ontario can hold its spot as the producer of energy solutions. First among them is Tracey Teed Martin, the Director of Toronto Region Operations at Enbridge Gas. Tracey's accountable for overseeing the safe, reliable delivery of gas in Toronto, including all construction, maintenance and emergency [00:24:30] response activities. Throughout her career at Enbridge, she's been tasked with delivering key initiatives, including a management tool used to forecast approximately $1 billion in capital spend annually. Welcome Tracey. Also, with us is Pat Dalzell, Bruce Power's head of corporate affairs. Bruce primarily focused on the growth of Bruce Power's corporate identity through government and stakeholder engagement, as well as promoting areas of energy innovation, such as the use [00:25:00] of nuclear isotopes in the fight against cancer.

                                           Glad to have you back with us, Pat. And finally, a warm welcome to Colin Dhillon, Chief Technology Officer at the Automotive Parts Manufacturer's Association. With over 20 years of experience in the automotive industry, Colin helps lead national initiatives like Canada's first zero emission concept vehicle. His ongoing work with automated and electrified mobility provides Colin with a global platform as a thought leader [00:25:30] in digitizing the automotive sector. As the minister just reflected, this is a huge opportunity, a huge new opportunity for us as our OEMs, as our tech sector and as the critical raw materials really set us up to be an emerging global battery electric vehicle center. So thank you all for joining us today. As a reminder to our audience, you can ask this panel questions through the Q&A function to the right. I have some questions to get us started, and I'll be checking [00:26:00] my mobile phone through the session just to pick up your questions.

                                           Colin, let's start with you both the federal and provincial governments have bet on the auto manufacturing sector, particularly electric vehicles as key to future economic growth. Is this a question of trying to preserve what we already have or are there opportunities to grow the sector's footprint in the province? And could you extend your answer? Because I know we were talking just before we went live [00:26:30] about the opportunity to build that fulfilling ecosystem supply chain here in Ontario. So your thoughts on that, please.

Colin Dhillon:                   Thanks for the question, Jan, and thank you to the Toronto Region Board of Trade for inviting me to speak today. You never kind of settle for what you have with regards to any kind of technology or process. You always blow it up and you go for more, you never just preserve. The challenges that we are [00:27:00] facing currently in the automotive sector is to be able to be a leader when it comes to zero emission vehicles and also technology. And for those that aren't aware, the Automotive Parts Manufacturer's Association is a trade association that's been around for about 69 years. We generate billions of dollars that go the GDP annually from our members. And we employ over 100,000 individuals throughout Southern Ontario. [00:27:30] And the challenge that we've identified, hence why we launched project arrow back in January of last year, was to challenge our members and to be honest, all of Canada to come up with a design and then to develop Canada's first zero emission concept vehicle as a demonstration vehicle.

                                           What better way to take a vehicle on a global tour in 2023, to be able to say to these different jurisdictions that we are looking towards to say, " [00:28:00] Hey, this is what Canada has to offer. When it comes to stratification technology, these are the players. When it comes to connecting an autonomous technology, these are the players. When it comes to clean tech, these are the players." But we should just stop there Jan, as you said. We should be looking at the supply chain. It is critical and I'd like to congratulate the province of Ontario and minister Fedeli's announcements from a few weeks ago where they've actually launched Ovin, O-V-I-N, [00:28:30] which is a 56.4 million fund that's going to be focusing on battery development. It's going to be focusing on mining of those critical materials from Northern Ontario as the minister was talking about. And it will also continue the push for connecting an autonomous vehicle technology.

                                           And so these types of programs are what are going to be required to make sure we don't preserve. Let's not preserve Canada, with the announcement of the D3 building EVs [00:29:00] here in Ontario. Why are they announcing that Jan? They're not doing us a favor. It's because they've done their homework and they know Southern Ontario is the right place to build their EVs when we talk about assembly. But we've got to make sure that they don't buy their parts and materials from China and America. We've got to make sure we strengthen our supply chain.

Jan De Silva:                     Yeah, tremendous opportunity. But as you said, lots to do to make sure we're taking full advantage of this unfair competitive advantage [00:29:30] that we have. Pat, Bruce Power has a contract to produce power until the 2060s providing stability needed to invest in R and D and innovation. How are you using this foundation to develop what's next?

Patrick Dalzell:                 Well, yeah, thanks for the question, Jan. And thanks so much for having me today and most of all, thanks to the Board of Trade for persevering throughout this pandemic and continuing with these Power Breakfast. They're great opportunity to discuss a lot of very important topics [inaudible 00:29:58] to Sandra pointed out before [00:30:00] and very happy to be part of this panel. And just to give a little bit of context. So Bruce Power, we're the large nuclear operator over on the shores of Lake Huron, whereas we say, we produce about a third of Ontario's electricity at 30% below the average cost to produce residential power. And you mentioned our contract goes out to the '60s, which it does. And we signed that contract back in 2015. And [inaudible 00:30:25] what effectively that contract allows us to do [00:30:30] is, well not only produce emissions free electricity for the next five decades, it's also allowing us to life extend our units to make sure we can do that.

                                           And the impact of that is that, upward of 10 billion in economic activity is produced through these projects to life extend our units. And most of that spends happening right here in Ontario. And I would say the three key aspects to that economic activity that I want to kind of focus in on in terms of this question is first of all, the recapitalized [00:31:00] supply chain that supports this work. Sandra described before some of the impact that nuclear refurbishments are having in terms of job creation, advanced manufacturing. And you can imagine as we kind of go through the next several years of refurbishing and life extending the 10 units across Ontario, the advanced manufacturing sector has that base of recapitalized money to lean on. [00:31:30] And whether it's the automotive sector, the aerospace sector, the companies that make up our supply chain have a diverse impact on economic activity.

                                           So we provide that foundation. We allow them to build upon that to innovate and produce new technologies that can then be adding to Ontario's economic advantage. So that also includes innovation in and around the nuclear sector. So whereas [00:32:00] our reactors, our site has been in operation now for several decades, the nuclear or the actual equipment and the stuff that we have at our site, isn't the same nuclear equipment as it was for our father's generation for example. This is new. This is innovative. And the results of that are new efficiencies and increased output from our site. And that contributes to the claim electricity that we have here in Ontario. [00:32:30] So we're seeing reductions in terms of costs, we're seeing increased deficiencies in terms of output.

                                           And that allows to build on what was described as Ontario's clean electricity advantage, where anybody looking to plug into this grid in Ontario is essentially reducing their carbon footprint. We have a very clean electricity grid here, and that's an advantage for Ontario. The other area that's really [00:33:00] impacted through this idea of nuclear innovation is the spinoff technology. So what we've seen develop in and around our area is what's being called by our local municipalities as the clean energy frontier, really providing support for new innovation, helping Ontario reach its climate change objectives. We announced our own commitment to reaching NZ by 2027, reducing our own site emissions in that timeframe. And to do [00:33:30] that, we're reaching out to this clean energy frontier and our local communities and the ag sector in particular, to find ways that we can partner together to find deeper decarbonization efforts and offsets and innovation in that space, such as whether it's hydrogen or sequestration.

                                           There's lots of opportunities that we can leverage the investments being made at our site to partner with community and thereby reduce our own impact on the environment in addition to all the clean electricity we produce. And then the final [00:34:00] area that I'd just like to always bring up. And Jen, I know you've heard a fair bit of this and minister Fedeli has actually participated in a number of events around this, but really is about isotopes. So one of the best kept secrets in Canada is that we really are an isotope superpower in this country. And Ontario in particular is the source for the bulk of the cobalt 60 used around the world to sterilize all kinds of things. So [00:34:30] particularly during this pandemic, it's been used to sterilize medical equipment. Last year alone, in terms of cobalt 60 harvested from our power reactors, we produced enough to sterilize the equivalent of 24 billion pairs of surgical gloves or the swabs used for testing for COVID.

                                           And now as innovations taking place in the isotope space, and they're starting to find new applications for isotope in terms of treating cancer [00:35:00] in a more targeted way, we're using the long term commitment to nuclear power, to really leverage that retrofit our reactors and produce all kinds of new isotopes to make sure that there's an abundant and steady supply of these key lifesaving tools. So obviously something we always enjoy talking about the isotope story and there'll be more to come over the next few years in terms on that front.

Jan De Silva:                     Terrific. Thanks so much, Pat. Tracey, what do you see as Ontario's competitive advantages from an [00:35:30] energy perspective? And how do we play to our strengths as we move towards net zero?

Tracey Teed Mar...:        Thanks for the question, Jan and thanks for having me. Ontario has many advantages from an energy perspective, but there's a few I would like to highlight in particular. The first is our diversity. So Ontario has a really diverse portfolio. We have nuclear. We have hydroelectric. We have natural gas. We renewable power. And with that diversity [00:36:00] comes resilience, which in a climate changing environment is becoming increasingly important. We only have to look to taxes to really see that in effect. The second is we're clean. Like many of people have talked about that already, the minister, Pat, our electricity system is one of the cleanest in the world and that was largely due to the phase out of coal. But it still remains, we are very, very clean. [00:36:30] And the final thing is probably less known, but it's our energy storage capabilities.

                                           So many may not know that Dawn, our natural gas storage facility in Southwestern Ontario, it's one of the largest in North America. And at any given time we can store up to 55% of the total annual electrical energy used in Ontario. So it's a massive facility. So in terms of, how do we play to our strengths as we move forward towards [00:37:00] net zero.? I really think Ontario is uniquely positioned to integrate its clean electric grid with our Dawn storage capability and the geographical reach of our gas infrastructure to move towards decarbonization in a practical way, a reliable way, and most importantly, an affordable way. I was trying to think like, okay, what's an example [00:37:30] that I could use that could show how this might work and to make it more clear for people.

                                           I think the best up I could come up with was our power to gas, hydrogen facility in Markham. So what Enbridge is doing there is we're taking surplus electrical energy from renewable sources that otherwise would go to waste and we're using it to hydrolysis water into hydrogen and oxygen. And then we're able to store that hydrogen, but later [00:38:00] this year, what we're planning on doing is blending that hydrogen into the natural gas grid to displace carbon fuels. I think that's a really good example that shows how we can leverage both grids. This takes surplus electricity from one system that can't easily be stored and it converts it into a clean fuel that can be mixed in the natural gas supply today to reduce carbon on the grid.

                                           So it's both systems working in tandem with one another and [00:38:30] this is something that can be replicated across the province. And it's exactly the type of thing I think we need to be doing to maximize our existing assets, to keep our energy costs competitive while still making progress towards our decarbonization goals. So in short, leveraging our existing assets and having our energy systems working together, that's how I truly think Ontario can best in itself as we move to a lower carbon future.

Jan De Silva:                     Thanks. [00:39:00] Terrific. And I appreciate the answers that all three of you gave for those opening questions. We've now got a lot of questions coming in from the audience. Let's start with this. Ontario consumes on average 400,000 barrels of oil per day, every day, what are our options if we were to replace that amount of energy and do they exist? So who would like to go first with that? Colin, why don't we start with you on the EV front, the battery [00:39:30] EV front.

Colin Dhillon:                   Again, as we talk about electric vehicles, we've also got to be talking about the electric vehicle charging infrastructure as well. There is a current ongoing challenge within the EV development to bring the cost of a kilowatt per hour down to as close to 50 to $60 where currently today it's north of $100. At the same time, we have to make sure that [00:40:00] the charging infrastructure is laid. So it gives everyone complete access and you don't have range anxiety because if anyone's owned or owns an electric vehicle and I'll tell you myself, it gives you range anxiety because it's not like your internal combustion engine, that's using those barrels of oil. It's when you hit zero, it could mean zero as opposed to where you've got 14 in the tank.

                                           I think [00:40:30] the fact that from what Pat and Tracey have been telling us, the fact that we are creating some of the most clean energy out there. I think reducing the consumption of 400,000 barrels of all per day does lie in clean technology and energy. And it's not just electrification, but I think it's also nuclear as well.

Jan De Silva:                     Perfect. And Tracey, I see you've got your hand up. Your thoughts.

Tracey Teed Mar...:        Yeah. So what [00:41:00] I would say is kind of building on what Colin was saying. So 45% of Ontario's energy mix is transportation fuel, which is gasoline and diesel, both distilled products from oil. So if we want to tackle the number of barrels of oil per day issue, then really I think that sector is one that we have to target and we're already doing a lot of these things. So the first thing I would say is electrification of residential transportation. [00:41:30] And that's the electric vehicles that everybody's talking about, but there's also the heavy duty trucking sector, which is a little bit harder to electrify. So in that space, there are lower carbon alternatives and carbon neutral alternatives. So I would say renewable natural gas, compressed natural gas, hydrogen. Those are solutions that we might be able to use in that sector.

                                           And then I would also add that in the heating space, there's still 7% [00:42:00] of our energy is being consumed in that space. And that's typically heating oil and propane, which is again a distilled product from oil. So we can, and there's an opportunity there to lower the carbon intensity by switching to natural gas and Enbridge, we already have programs in place that support this through community expansion and infill efforts. But I think to make a huge difference, like in the industrial section, [00:42:30] and this is probably sector, this is probably something for the future where I don't know that we have the solutions yet, which we may want to look at hydrogen for the industrial sector.

                                           And then finally, when we think about what are the uses of oil, I don't know that there is a solution yet for how oil is used as a feed stock, for example, in plastics. I can't think of one. I mean, I know we do a lot of recycling and the government of course is talking about reducing [00:43:00] single use plastics, which I think makes sense. If we need to use oil to produce plastic, at least we're getting more than one use out of it. So that's my thoughts in terms of reducing our overall barrel per day consumption.

Jan De Silva:                     Now, Pat, I know this is also on Bruce Power's radar. So did you want to respond to this as well, particularly as it relates to hydrogen?

Patrick Dalzell:                 Well, when it comes to... I don't think there's a one stop shop in terms of completely [00:43:30] reducing our reliance on oil products immediately. This is all about leveraging what we have right now and building on as we've described it, some of the competitive advantages that we have, including a clean electricity sector. We heard a little bit from minister Fedeli, we have a competitive advantage in terms of new nuclear as well. So that recapitalized supply chain, new efficiencies around clean electricity production in Ontario. [00:44:00] And then kind of tying together a couple of points that we just heard in terms of using electricity at night versus the day. So if you can imagine the way a demand curve works in almost anywhere, electricity demand goes up to during the day and then falls back off at night.

                                           If we can combine things like charging cars at night or using the storage that Tracey was describing to sort of flatten out that demand curve, supplies of clean [00:44:30] electricity base load supply, like nuclear tends to do, because we're all out all the time in terms of output to the grid. You flatten that demand curve and then all of a sudden your energy dependence comes more from that clean electricity and less from other areas. And there's more opportunity for cost savings. There's more opportunity for strategic investment in the right deployment of these new energy sources, whether it's nuclear or ultimately leveraging clean electricity to produce clean hydrogen, [00:45:00] which we're looking at as an opportunity as well. And the amazing thing about hydrogen is that it can be produced and used anywhere in Canada.

                                           And that's one of the great things about it, whether it's... I think the challenge around hydrogen though, is that there's this kind of dialogue about which hydrogen's better, whether it's green, orange, or yellow. At the end of the day, if you're using hydrogen, you're reducing emissions and that's the key focus [00:45:30] point there. As we develop up a broad Pan-Canadian hydrogen strategy, it's not about one type of hydrogen over the other, it's how can we all produce this hydrogen? How can it be best used? And how can each jurisdiction around Canada be leveraged to actually get involved in the production of that hydrogen? Because if there isn't a Pan-Canadian approach or at the very least within a jurisdiction approach to it, there's just more challenges to it.

Jan De Silva:                     Okay. Thanks [00:46:00] for that. I want to continue on this thread of the theme of new and clean tech. Automotive and nuclear sectors have been very successful at building robust local supply chains. What are the lessons we can apply to emerging clean tech projects? Colin, did you want to start with that?

Colin Dhillon:                   As we've been saying earlier, Jan, we've already got a very strong supply chain for the current kind of automobile systems that are extracted from assembly plants [00:46:30] throughout North America. But we have to make sure that we go granularly when it comes to the supply chain. And just as minister Fedeli had mentioned, and I was kind of alluding to, we have to make sure that we aren't just mining the materials or global nationals are mining our materials and then taking them to other places to who process and then selling them back to us. So I think even now [00:47:00] with the emerging zero emission vehicle technologies as Pat was talking about hydrogen, which is obviously a key player in the kind of immobility sector as well.

                                           We just have to make sure that Ontario specifically carries on doing the right things that it has done over the past, say 50 to so years when it comes to supply chain. And one of the things that we feel that could support this is for [00:47:30] Canada to start thinking about having its own OEMs. What a fresh idea? If Tesla can do this on the West Coast of the United States of America, why can't we create our own OEMs here in Ontario to compete globally, which will really help to strengthen the supply chain as well?

Jan De Silva:                     Okay. And if I could just have a follow on question. How do these announcements, and I know, I think the industry's calling it [inaudible 00:47:58] electric vehicles. You're coaching me to call it [00:48:00] electric mobility. But how are the parts of our supply chain in Ontario recalibrating to participate in this? Or has that already been a journey that's been commenced?

Colin Dhillon:                   Well, for some of the larger companies, it's been a journey that was commenced probably over a decade ago. You read the T leaves, you understand where the industry's going. You put a percentage of your R and D investment towards say electric vehicle technology. What suddenly happened overnight, let's just say, is Ford and [00:48:30] Stellantis and General Motors all announcing within months that they're going to assemble vehicles here in Ontario. And so now there's a bit of a race. So that slight R and D lag now has to be converted. And sometimes the best way to do that is to invite a global player i.e if we look at a gap analysis, one of the reasons we are doing project [inaudible 00:48:52] is also not only to demonstrate Canada's EV capabilities and tech capabilities, but at the end of the two year project, Jan, it's [00:49:00] going to be a great gap analysis to tell us if we only have one company that can do battery manufacturing or there's only three companies that can do battery packing.

                                           And are we limited to [inaudible 00:49:12] and iron battery cell development? Do we have solid state battery technology development? So all of these conversations are rapidly happening as we speak, but I would say that there is the leaders in the supply chain, like the Magna Internationals and the [Linemars 00:49:30] [00:49:30] and the [inaudible 00:49:32] that have already taken the right steps. And then you are going to see an emergence of these kind of startups to help with the electrification of the vehicle.

Jan De Silva:                     Okay. And if we can continue with this, both Tracey and Pat, the robust, local supply chains that your organizations catalyzed to be so successful. And how does this play out for clean tech? And let me just preface this by saying Yung Wu of MaRS sits on our board. And [00:50:00] a discussion we continually try to lean into is how do we create those deployment opportunities for this amazing innovation ecosystem that we've got in the province? So your thoughts as that pertains to be emerging clean tech participants in local supply chains.

Patrick Dalzell:                 I mean, I think making sure that any investments or strategic direction, especially from a policy perspective, gets directed at a whole value chain [00:50:30] of any supply chains essential to making it work. No matter what, there are going to be costs associated with clean tech innovation, that has... And the decisions around what path to follow in terms of those investments. You have to look at it from a whole economy perspective, right? So if you're not advantaging the whole of Ontario or the whole of Canada with the decisions, the strategic direction you take as a jurisdiction, [00:51:00] then it starts to lose its appeal in terms of an investment, right. And the same can be said for nuclear energy. We can see the ripple effects it has, the spend that we're putting into our life extension work is 95% and it's right here in Ontario. And that creates an advantage for the province.

                                           I spoke a little bit about isotopes, the same idea, we're trying to support a Pan-Canadian ecosystem [00:51:30] for the production of these lifesaving tools. And it's kind of the idea of build it and they will come. You actually start to attract more investment into those areas, and then eventually not only do you secure a domestic supply and a domestic expertise, it starts to become an export product opportunity, right? They can then look to bring around the world. I think that's definitely been the approach that the nuclear industry is used very successfully here in Ontario, that we're looking to apply to isotopes. And ultimately a lot of the [00:52:00] clean tech innovation that we're helping to support through the work we're doing.

Jan De Silva:                     Okay. Tracey thoughts from you.

Tracey Teed Mar...:        Yeah. I would just add that I think in order for any supply chain to truly gain root and to establish itself, one of the precursors is creating a stable sustained demand. So I'll take hydrogen as an example. One of the things the government could do to help and facilitate that supply chain development is they could mandate hydrogen blending [00:52:30] targets in natural gas, for example, similar to how ethanol is blended in gasoline. And what that would do is it would create a market, a stable market that then would allow other players to invest. And then once that market is established, other uses for that hydrogen can and come to bear. So I think it's really creating that environment that allows a supply chain to foster.

Jan De Silva:                     Okay, perfect. [00:53:00] We're going to have time for I think one more question. And this is, again, I think off the top, I was talking about the Biden government announcing major invest in the US energy grid and R and D for clean tech. I think each of you have touched on our advantages. I think Colin, you've flagged the fact that we need to take full advantage of this in our domestic operations as well. So what do the Canadian governments and what do you as businesses [00:53:30] need to do to make sure that we don't fall behind? And this is such a Canadian way of asking the question. We've got this leadership position, but now there's an announcement from this big machine south of us. But how do we take full advantage of the advantage we have today in the face of announcements like the one that the Biden administration's trying to push through? Who wants to go first? Colin, should we start with you?

Colin Dhillon:                   Sure. Well, as I said earlier, it's not by accident that Ford, Stellantis and [00:54:00] GM announced building their EVs here in Ontario. Listen, we've got a great workforce, an educated, highly educated workforce. Our public and private partnerships work really well, but I'd like to expand that. I think in order for us to compete on an R and D level, I think it should be public academic, private partnerships. And when the APMA had to look at an academic partner on project [inaudible 00:54:27]. We chose the Ontario Tech University in Oshawa for a reason because [00:54:30] of the way they are set up. Their understanding of public and private and their understanding of research and doing projects is a lot closely aligned to the private sector than it is to say the public sector. So I think we need to use models like the models that they have with ACE and their climatic testing chamber.

                                           As I've said, we also need to look at generating our own OEMs, because if you generate your own OEM, Jan, guess what? Head office stays in Canada. [00:55:00] Intellectual property stays in Canada. R and D stays in Canada. And jobs will be generated in Canada. And we're not accidentally the second largest tech sector in North America. I'd actually like to better that, and to say for the last two years prior to COVID Canada was generating more tech jobs than Silicon Valley, Washington, DC and Seattle combined. And when I say Canada, I should say specifically the GTA.

Jan De Silva:                     [crosstalk 00:55:27].

Colin Dhillon:                   Yeah, just the GTA. Just the GTA. And [00:55:30] so when you take all of those ingredients, we shouldn't fear. We should learn from the announcement South of the border, but we should be developing our own course and our own track for where we're heading to. And yes, we're happy to build the vehicles for the Americans. We're happy to build them for the Japanese, but guess what? Let's invite the French, the Indians and the Chinese over here as well, but do our own at the same time.

Jan De Silva:                     Perfect. Thanks. Tracey, you're [crosstalk 00:55:59].

Patrick Dalzell:                 Sorry.

Jan De Silva:                     Pat, go [00:56:00] ahead. No, go ahead, Pat. That's fine. Go ahead.

Patrick Dalzell:                 Just to build on some of what Colin said, in terms of public private. Our company is a private company. And really the contract model that we have set up with the province to 2064, as you pointed out, Jan is a great example of a public private partnership that really works, that has had an impact already and will continue to have an impact. I think that's really [00:56:30] what all levels of government have to do really identify the key strategic advantages that we have. And we've spoken a lot about that today and really hone in on those advantages, find the private sector money that's ready to be deployed, provide the support mechanisms to get it deployed, and then really build upon that. So for example, what we've done with nuclear, we've phased out, [inaudible 00:56:55] Ontario. You talked a little bit about Canada's leadership.

                                           Canada has been a leader and continues to be a leader in fighting [00:57:00] climate change. You heard a little bit about it earlier. The phase out of coal was the single largest THG emissions reduction initiative in North America. And it was done very successfully by leveraging some of the advantages we had in terms of nuclear power. That makes the go forward challenge for Canada that much more of an obstacle in terms of getting even deeper decarbonization. Having said that, I think we've got a proven track record of making it happen. So it's leveraging those advantages, building [00:57:30] the mechanisms to attract the private sector money to support those advantages and continuing that leadership role.

Jan De Silva:                     Thanks. Tracey, your thoughts.

Tracey Teed Mar...:        I don't really have much to add to what my colleagues have said other than I think to the extent possible we need to leverage our existing assets so that we can keep our energy cost competitive. So I think, when we're talking about attracting clean tech or attracting manufacturing to Ontario, [00:58:00] I mean, that's one of the key single differentiators is cost of energy. So as we go through this transformation to the extent possible that we can keep our energy costs competitive, I think that's what we need to do.

Jan De Silva:                     Thanks for that. It's been a terrific, terrific conversation with all of these Power Breakfast. I hate when we're running out of time, but we are coming to the end of this discussion. I think pre COVID mayor Tory and I used to have this little running joke where he was saying Colin to your point [00:58:30] about more tech jobs being created here in the GTA. He would say, "Toronto's having a moment." And I would say, "As a board of trade, it's not a momentum. We want it to be momentum." And I think our discussion today has just showed us the momentum that lies ahead as it pertains to clean energy and as it pertains to the topics that we discussed. I think the mandate now for all of us, and I know as the board, we work very closely with all of your organizations, it's how do we create the right conditions for this to truly be a game [00:59:00] changing momentum for us?

                                           You folks are the experts in this. We look forward to continuing our discussions about how we can convene and create the right conditions to support all the success that you're delivering to our market. So Tracey, Pat, Colin, thank you for your insights today. Thank you for what you bring to the table, always in our discussions with you. Before people log off, let me just quickly tell you about another initiative happening at the board. Much of our discussion this morning talked about making investments that would pay off in the future. [00:59:30] And that's so exciting. But it's also true that in the short term, there is some work to be done on the immediate now. As businesses and governments try to figure out how to set up our region for a speedy economic rebound.

                                           As soon as we're through the other side of this pandemic. To support these efforts about recovery and reopening, the board's releasing a library of data driven insights and leading practices that are related to reopening business districts, [01:00:00] COVID mitigations and even regional economic enablers. To learn more about that work, to access these resources and to get involved, visit bot.com. That's B-O-T, bot.com/getready. Thank you again for watching. Thank you again to our amazing catalyst. Pat, nice to see you with a beard. We'll see what happens once you're fully vaccinated and the barber shops are reopened. [crosstalk 01:00:25] have you all on here. Be well, everyone. Thank you.

Colin Dhillon:                   Thank you.

Patrick Dalzell:                 [01:00:30] Thanks a lot, Jan. Thank you.

Jan De Silva:                     Thanks.

Tracey Teed Mar...:        Thank you.