Grain News

Canadian Government, Consumers Push for Usage of Renewable Fuels

Date Posted: December 29, 2005

By Susan Reidy, BioFuels Journal editor

Canadians resoundingly say they want federal legislation requiring all gasoline to contain renewables, and now both of the country’s major parties agree.

Earlier this month, the Conservative and Liberal parties of Canada made election commitments to implement a renewable fuel standard requiring a 5% renewable fuel content on average in Canadian transportation fuel.

“This is the election that will deliver renewable fuels for Canadians,” said Tim Haig, chairman of the Canadian Renewable Fuels Association (CRFA | 416-304-1324) . “The two major parties agree. It is now a national priority.”

Canada’s 39th general election is Jan. 23.

According to the CRFA, a federal RFS would result in a 4 mega ton per year reduction in greenhouse gas emissions; 1,500 to 2,000 direct jobs in rural areas; $2 to $3 billion in private capital investment; value-added market for at least 200 million bushels of grain; and a hedge against rising petroleum prices.

Three Canadian provinces already mandate the use of renewable fuels—Saskatchewan, Manitoba, and Ontario.

Consumer Support

According to a poll commissioned by the CRFA, 81% of Canadians support federal legislation that would require all gasoline sold in Canada contain a renewable fuel.

The Strategic Counsel conducted the poll of 1,000 adult Canadians by telephone between Nov. 3 and Nov. 7.

Canadians also strongly believe (91%) it is important to get renewable fuels like ethanol into distribution in the country.

They believe the government should be doing everything it can to ensure renewable fuels are made available to consumers.

Awareness of renewable fuels such as ethanol is also high among Canadians.

About 91% said they had some awareness of ethanol as a clean or renewable fuel. About 24% could name ethanol without being prompted.

One-in-two respondents said they have a positive or very positive impression of ethanol. Only 7% said they had a negative impression.

According to the poll, 78% of Canadians would use ethanol as an additive to gasoline in their motor vehicles.

Ontario residents were the most likely (85%) to say they would use ethanol.

Even at the same price as gasoline, the majority of respondents said they would still definitely or probably use ethanol blended gasoline, if it was available.

Respondents said they would use ethanol because of its environmental benefits such as fewer harmful emissions, reduction in greenhouse gas emissions, and smog reduction.

Renewable Summit

Interest in Canadian ethanol production also is strong.

The Second Annual Canadian Renewable Fuels Summit, Dec. 13-15 in Toronto, ON attracted 450 people, nearly double the attendance at last year’s premiere event.

This year’s theme was “Open New Opportunities.” The Honorable Donna Cansfield, minister of energy, gave the keynote address on Wednesday, Dec. 14.

A range of topics on ethanol and biodiesel were covered during the event including American and Canadian policies, emerging technologies, international markets, project financing, choosing feedstocks, and wheat-based ethanol production.

Several awards were given at the Green Fuels Awards Banquet Wednesday evening.

Recipients included:

-Ken Fryer, manager of fleet operations for Coquitlam, BC; Biodiesel Fleet Award.

Fryer was instrumental in organizing the BC Biofleet Cooperative Purchasing Agreement in which six British Columbia municipalities agreed to purchase up to 80 million liters of B20 over the next three years.

-Guy Pinard, technical advisor, Natural Resources Canada's Fleet Management Section; E85 Fleet Award.

Pinard was key to establishing the first on-site facility capable of dispensing E85 within the federal government. He also ensured Natural Resources Canada was the first organization to acquire E85 vehicles from the manufacturer.

-Dalton McGuinty, Premier of Ontario; 2005 CRFA Award.

The Ontario government has approved a mandate that all gasoline in the province contain at least 5% ethanol by 2007 and 10% ethanol by 2010.

-Rothsay, a subsidiary of Maple Leaf Foods, Dundas, ON; New Canadian Producer Recognition Award (new this year).

Rothsay opened Canada's first large-scale biodiesel plant in Montreal. It will produce 35 million liters per year when it reaches full capacity next year.

-NorAmera BioEnergy, Saskatchewan; New Canadian Producer Recognition Award.

NorAmera is building a 25-million-liter-year-year ethanol plant on the site of the former Weyburn Distillery.

Next year’s event will be Dec. 12-14 in Calgary, AB. For more information, visit www.canadianrenewablefuelssummit.com.

Building an Industry

The Canadian government is pushing the development of ethanol plants in the country.

The Ethanol Expansion Program, launched in 2003, has awarded $118 million (Canadian) to plant expansion and construction projects.

Projects supported by the program are expected to produce 1.2 billion liters of ethanol per year by the end of 2007.

That would bring Canadian production to 1.4 billion liters per year, seven times what it was before the launch of the program.

Regionally, Ontario is promoting the use of ethanol in the province.

A mandate requiring at least 5% ethanol in all gasoline sold in the province takes effect Jan. 1, 2007.

The province accepted applications through Nov. 10 under its Ontario Ethanol Growth Fund.

The 12-year, $520 million fund provides:

-Capital assistance in the form of grants or loan guarantees for new or expanding ethanol plants in Ontario. Assistance will not exceed 10 cents per liter of plant capacity.

-Operating grants to help ethanol facilities manage fluctuating input and output prices and assistance to plants in production from 2007 until 2017.

Grants will not exceed a value of 11 cents per liter of ethanol produced.

Support is provided up to a total production capacity of 750 million liters per year.

-Support for independent blenders who were blending ethanol prior to June 17, 2005.

-Research and development fund to help farmers, environmental, and bio-based businesses create research and investment opportunities in the ethanol manufacturing sector.

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