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Farmers eager for biofuels strategy
Federal government to announce $200M plan to promote ethanol, biodiesel
Mike De Souza, The Ottawa Citizen
Published: Wednesday, December 20, 2006
Canadian farmers and energy industry officials are counting on the Conservative government to announce $200 million worth of subsidies today to encourage production of ethanol for cleaner-burning gasoline and fuel.
Environment Minister Rona Ambrose and Agriculture Minister Chuck Strahl are expected to confirm the one-time grant in Saskatoon as they unveil regulations that will provide the framework for achieving a five-per-cent renewable fuels content in gasoline by 2010.
"There's a big difference between rumours and facts, so we'll have to wait for that," said Barbara Isman, president of the Canola Council of Canada, a non-profit industry association. "It's been a very difficult time in the West, particularly, so farmers haven't had access to capital, and $200 million will, I think, go a long way."
Ms. Isman estimates farmers would need about $600 million in new capital investments for start-up costs required to produce ethanol and other renewable fuels such as biodiesel -- which can be extracted from canola oil -- in sufficient quantities.
Ethanol can be extracted from corn or sugar cane.
While gasoline that's blended with ethanol produces less greenhouse gas emissions and pollution than conventional fuel, environmentalists say the five-per-cent renewable fuels target would have little impact in the fight against climate change.
"If this is really the best they can do in terms of greenhouse gas reductions, it's pretty dismal," said Emilie Moorhouse, spokeswoman for the Sierra Club of Canada. "I would see this more as an initiative to help farmers than to help the environment.... If you take Brazil, for example, they are producing massive amounts of renewable fuels, but they're cutting down the rain forest. So that's having a very detrimental effect on the environment."
Ms. Moorhouse said the government should focus instead on energy efficiency programs to reduce greenhouse gases.
But industry officials say the new federal approach would be good for the economy as ethanol-blended gasoline and related technologies start to expand.
"It's not just going to attract investment in biodiesel and ethanol, I think the approach they're taking is going to attract a lot of investment in technology research," said Kory Teneycke, executive director of the Canadian Renewable Fuels Association.
He said the next step would be tax breaks in the next federal budget for ethanol production to put Canadian producers on the same footing as their counterparts in the U.S. and abroad.
Petroleum producers also say they are on board, but want to be sure they can achieve targets and maintain performance of the fuel in cold temperatures.
"These products are coming," said Dane Baily, vice-president of the Canadian Petroleum Products Institute. "Certainly, ethanol is performance proven. It works in cars. The only important thing is to allow us the time to get it right."
A spokesperson for Mr. Strahl said the government had already increased spending on agriculture by $1.5 billion in the last federal budget, but so far, only $10 million was allocated for measures on biofuels.
Federal government to announce $200M plan to promote ethanol, biodiesel
Mike De Souza, The Ottawa Citizen
Published: Wednesday, December 20, 2006
Canadian farmers and energy industry officials are counting on the Conservative government to announce $200 million worth of subsidies today to encourage production of ethanol for cleaner-burning gasoline and fuel.
Environment Minister Rona Ambrose and Agriculture Minister Chuck Strahl are expected to confirm the one-time grant in Saskatoon as they unveil regulations that will provide the framework for achieving a five-per-cent renewable fuels content in gasoline by 2010.
"There's a big difference between rumours and facts, so we'll have to wait for that," said Barbara Isman, president of the Canola Council of Canada, a non-profit industry association. "It's been a very difficult time in the West, particularly, so farmers haven't had access to capital, and $200 million will, I think, go a long way."
Ms. Isman estimates farmers would need about $600 million in new capital investments for start-up costs required to produce ethanol and other renewable fuels such as biodiesel -- which can be extracted from canola oil -- in sufficient quantities.
Ethanol can be extracted from corn or sugar cane.
While gasoline that's blended with ethanol produces less greenhouse gas emissions and pollution than conventional fuel, environmentalists say the five-per-cent renewable fuels target would have little impact in the fight against climate change.
"If this is really the best they can do in terms of greenhouse gas reductions, it's pretty dismal," said Emilie Moorhouse, spokeswoman for the Sierra Club of Canada. "I would see this more as an initiative to help farmers than to help the environment.... If you take Brazil, for example, they are producing massive amounts of renewable fuels, but they're cutting down the rain forest. So that's having a very detrimental effect on the environment."
Ms. Moorhouse said the government should focus instead on energy efficiency programs to reduce greenhouse gases.
But industry officials say the new federal approach would be good for the economy as ethanol-blended gasoline and related technologies start to expand.
"It's not just going to attract investment in biodiesel and ethanol, I think the approach they're taking is going to attract a lot of investment in technology research," said Kory Teneycke, executive director of the Canadian Renewable Fuels Association.
He said the next step would be tax breaks in the next federal budget for ethanol production to put Canadian producers on the same footing as their counterparts in the U.S. and abroad.
Petroleum producers also say they are on board, but want to be sure they can achieve targets and maintain performance of the fuel in cold temperatures.
"These products are coming," said Dane Baily, vice-president of the Canadian Petroleum Products Institute. "Certainly, ethanol is performance proven. It works in cars. The only important thing is to allow us the time to get it right."
A spokesperson for Mr. Strahl said the government had already increased spending on agriculture by $1.5 billion in the last federal budget, but so far, only $10 million was allocated for measures on biofuels.
© The Ottawa Citizen 2006