Canada Lags Leading Countries in Production of Renewable Fuels
Canada is falling behind in the international race to develop alternative fuels made from plants, says a study commissioned by the Canadian Renewable Fuels Association.
Brazil, the United States, China and the European Union are far ahead of Canada in production of fuels such as ethanol and biodiesel, says the report by international commodities research firm F.O. Licht.
In 2004 Brazil produced some 15.4 billion litres of ethanol, the United States 12.9 billion litres, the European Union 526 million litres, and Canada a mere 250 million litres.
"This report should be a wake up call for Canada," said Kory Teneycke, executive director of the renewable fuels association.
"We lag behind the world in an emerging new industry where we have the feedstock and the infrastructure to be global leaders."
The Conservative election platform includes a promise to require that gasoline and diesel contain at least five per cent renewable fuel by 2010.
That would represent 3.1 billion litres of ethanol and biodiesel a year, more than 12 times what the country produces now.
Teneycke said the introduction of that requirement is the most important policy step in promoting ethanol production.
Without it, new plants will be built in the United States, he said.
"That's certainly what were seeing today. There are 30 ethanol plants under construction in the United States."
Biofuels are gaining popularity because they reduce greenhouse emissions and smog, provide a hedge against rising oil prices, and create new markets for farmers.
The greatest hope of the industry is cellulose ethanol, made from waste products such as straw and wood chips. It produces a greater benefit than conventional ethanol because the raw materials are plentiful and don't have to be cultivated.
An Ottawa-based firm, Iogen, has produced cellulose ethanol at a demonstration plant and is currently negotiating with both the United States and Canada to obtain financing for its first commercial plant.
Although the federal government contributed significantly to Iogen's research and development, it has been reluctant to provide the loan guarantees needed to go commercial.
There is growing speculation that Iogen's technology will be exploited in the United States, but Teneycke said he still hopes a domestic arrangement can be worked out.
CanadianPress
Brazil, the United States, China and the European Union are far ahead of Canada in production of fuels such as ethanol and biodiesel, says the report by international commodities research firm F.O. Licht.
In 2004 Brazil produced some 15.4 billion litres of ethanol, the United States 12.9 billion litres, the European Union 526 million litres, and Canada a mere 250 million litres.
"This report should be a wake up call for Canada," said Kory Teneycke, executive director of the renewable fuels association.
"We lag behind the world in an emerging new industry where we have the feedstock and the infrastructure to be global leaders."
The Conservative election platform includes a promise to require that gasoline and diesel contain at least five per cent renewable fuel by 2010.
That would represent 3.1 billion litres of ethanol and biodiesel a year, more than 12 times what the country produces now.
Teneycke said the introduction of that requirement is the most important policy step in promoting ethanol production.
Without it, new plants will be built in the United States, he said.
"That's certainly what were seeing today. There are 30 ethanol plants under construction in the United States."
Biofuels are gaining popularity because they reduce greenhouse emissions and smog, provide a hedge against rising oil prices, and create new markets for farmers.
The greatest hope of the industry is cellulose ethanol, made from waste products such as straw and wood chips. It produces a greater benefit than conventional ethanol because the raw materials are plentiful and don't have to be cultivated.
An Ottawa-based firm, Iogen, has produced cellulose ethanol at a demonstration plant and is currently negotiating with both the United States and Canada to obtain financing for its first commercial plant.
Although the federal government contributed significantly to Iogen's research and development, it has been reluctant to provide the loan guarantees needed to go commercial.
There is growing speculation that Iogen's technology will be exploited in the United States, but Teneycke said he still hopes a domestic arrangement can be worked out.
CanadianPress
posted by Ottawa Gas Prices | 9:18 PM
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