Mr. Chair, honourable members and guests, thank you for the opportunity to speak before you. I join you from North Vancouver, the traditional and unceded territory of the Coast Salish people, the Squamish, Musqueam and Tsleil-Waututh.
I lead the CHFCA, the voice of Canada's fast-growing hydrogen and fuel cell sector. In 2017 the sector employed 2,500 skilled workers, invested $100 million per year in research, and sold $200 million of products and services, 90% of which were exports. Today, I'm not sure. In the past year, membership has more than doubled. Major energy and industrial companies have joined. Research spending has increased. Significant projects are under way in Canada and internationally, with over $300 billion of investment in hydrogen projects through 2030 announced worldwide and growing.
Canadian companies are claiming a good share of that, selling fuel cells, electrolyzers, technology and services. As a result, hundreds of millions in investments have flowed into sector companies; order sheets are full and companies are hiring. We've established branches in Quebec and B.C. due to demand. So I'm pretty bullish about prospects for my members, and I'm also excited about the broader economic potential for Canada. B.C. is seeing vehicle deployments. Quebec and Alberta are attracting investment based on their ability to produce low-cost clean hydrogen for biochemical and biofuel production, iron ore reduction, and rail, bus and truck projects, and we're just starting to scratch the surface of the potential for exports of hydrogen and clean chemicals.
We will also see environmental benefits. Canadians know they need to stop burning fossil fuels and start burning clean fuels, such as clean power, biofuels and clean hydrogen, or that if they do continue to burn fossil fuels, they need to ensure that all carbon emissions are managed through carbon capture, use or storage, i.e., CCUS. Those are the choices: electricity, biofuels, CCUS and hydrogen. Canadians should be free to decide which choice provides them with the best economics and operational efficiency. All options are needed. Hydrogen will play a big role, and we'll need to scale up hydrogen production by at least an order of magnitude. The key thing is that government should ensure that Canadians have access to the cleanest and lowest-cost hydrogen in the world.
There is a good reason for that. Hydrogen is essential to decarbonize tough sectors like heating and heavy transportation. It is needed for the build-out of clean power and biofuels. It represents an economic opportunity, and the availability of clean hydrogen will attract investment.
There are three points I would like to clarify.
First, the CHFCA supports clean hydrogen, i.e., that produced with low or no GHG emissions. That is what all new capacity will be, so a choice to go with hydrogen will be a choice to go net zero. CHFCA has leading companies engaged in the production of clean hydrogen from virtually every energy source: clean power, nuclear, biomass, waste and fossil fuels with carbon management to prevent CO2 emissions. While a discussion of pathways is healthy and standards are needed, my members all agree that all pathways, including fossil fuel-derived clean hydrogen, are essential. Anything else will needlessly drive up cost, create scarcity and slow our transition to net zero.
Second, fuel cell vehicles and battery vehicles are both zero-emission electric vehicles. Batteries and fuel cells are complementary, working together to provide a complete alternative to gasoline or diesel internal combustion engines for all transportation applications: light duty, heavy duty, ground, air or marine. We need both and fuelling infrastructure for both.
Similarly, electric heat and heat from net-zero gaseous fuels also complement each other to provide a complete and cost-effective net-zero alternative to fossil fuel and natural gas for homes, buildings and industrial heat. Both are needed.
As you have heard, hydrogen is enjoying unprecedented support federally and provincially and across party lines. The federal government released the hydrogen strategy for Canada, underpinned by the revised climate plan, with policy measures and significant funding. The Conservative Party's climate plan, while it differs, is consistent in supporting hydrogen.
My association applauds the positive actions and is encouraging Canada's industrial sector to bring forward meaningful projects, but there is more we can and should do to ensure the rapid adoption of hydrogen and other clean fuels. I am sure it will surprise no one that the CHFCA has a list of recommendations such as increasing research funding, broadening Infrastructure Canada's 5,000 zero-emission bus program to include trucks, creating earmarks for hydrogen, making federal buildings net zero, etc., but I'd like to highlight three.
First, focus on net zero. While the price on carbon and the clean fuel standard are important measures, they are geared to emissions reductions. We need policy geared to net-zero technologies such as zero-emission vehicles and net-zero heating, including a deadline perhaps to make gaseous heating fuels net zero by using hydrogen and renewable natural gas.
Second, hydrogen distribution costs are a challenge. We need to sidestep that by developing hydrogen hubs. I'm happy to talk further about what that means.
Three, we need the private sector engaged to provide the billions required to build hydrogen infrastructure, and they will, because the business case is there. The biggest barrier, however, is demand risk, and that is a perfect place for a government to assist with policies proven in other jurisdictions. Again, I'm happy to discuss that further.
Thank you for your attention. I look forward to questions.