CRFA calls for Canadian national renewable fuels strategy

Oct. 23, 2002
The Canadian Renewable Fuels Association (CRFA) has called on the Canadian federal government to introduce a National Renewable Fuels Strategy.

By OGJ editors

HOUSTON, Oct. 23 -- The Canadian Renewable Fuels Association (CRFA) has called on the Canadian federal government to introduce a National Renewable Fuels Strategy, and CRFA also urged federal, provincial, and territorial energy and environment ministers to endorse its effort.

"Renewable fuels are the way of the future," said Bliss Baker, CRFA president. "This strategy is expected to create new markets for over 100 million bushels of Canadian grain and generate over $1.5 billion in direct investment in Canada. It will also help us lower greenhouse gas emissions—helping us reach our Kyoto targets."

Canada lags behind the US in ethanol production and use. Ethanol plants are built frequently in the US, and legislation is pending before Congress to mandate the use of ethanol in gasoline from coast-to-coast.

Meanwhile, Canada has built one plant in 10 years and has no ethanol mandate, Baker said.

The CRFA called for a three-pronged program that would include:
-- A National Renewable Fuels Standard mandating specific levels of ethanol and biodiesel content in gasoline. This mandate could be phased in over time while the Canadian ethanol industry builds capacity.

-- Producer incentives matching US levels of support to encourage greater production of ethanol and biodiesel in Canada.

-- Research and development support for expanded technology applications. This would allow for continued research into newer, more efficient applications of ethanol technology, such as cellulose ethanol technology.

CRFA estimates the strategy would cost $400 million over 7 years. It would create new markets for up to 100 million bushels of Canadian grain and would also eliminate over 30 megatons of GHG emissions during the Kyoto commitment period from 2008 to 2012.