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Renewable Industries Canada welcomes Ontario’s move to 10% ethanol

Building on the success of current biofuel mandates, Renewable Industries Canada (RICanada), a non-profit organization with a mission to promote the use of value-added products made from renewable resources applauds Ontario’s leadership in increasing blending requirements for ethanol in gasoline to 10 percent by 2020. The expanded mandate is a "made-in-Ontario" solution to greenhouse gas (GHG) emissions that improve air quality in a way that is both practical and effective.

Once fully implemented, the ethanol mandate will reduce Ontario’s transportation sector emissions by 1.7 megatonnes, bringing Canada one step closer towards meeting our Paris Accord objectives, said RICanada in a statement.

The new regulation also stipulates that ethanol used in the province will need to reduce GHG emissions by at least 45 percent on average compared to gasoline, ensuring a strong mark high-quality ethanol.

According to RICanada, Ontario’s biofuels industry already has an economic impact of over CA$1.75 billion per annum – a number that will grow to CA$2.5 billion per annum in 2020, demonstrating that the market certainty provided by biofuel mandates benefits the Ontario economy.

Expanded biofuel use will foster new economic investments by Ontario producers and encourage them to continue to grow their business, improve efficiency, and increase production.

Ontario is at the forefront of the fight against climate change. When fully phased in, Ontario’s expanded blending requirement will be the environmental equivalent of taking almost 350 000 cars off the road. Based on third-party analysis the new regulation will also create up to CA$750 million per year in economic activity within the biofuel sector, said Jim Grey, Chair of the Board of Directors and CEO of IGPC Ethanol, Inc.

According to Howard Field, President, and CEO of ethanol producer compatriot Greenfield Global Inc., ethanol is the “lowest cost, greenest source of octane” for gasoline and incorporating more ethanol into the gasoline supply must be part of any long-term sustainable plan for GHG reduction.

The move to 10 percent ethanol will lower gasoline prices for consumers, encourage emerging low carbon fuel technologies, and give a lift to rural communities in the province. It’s imperative that other jurisdictions, across Canada, follow Ontario’s lead when considering their fuel standards, said Field.

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