Ethanol Producer Magazine
Ontario to mandate ethanol blends in 2007

Ontario, Canada, has implemented a renewable fuels standard (RFS) that will require gasoline sold in the province to contain an average of 5 percent ethanol by 2007. Ontario Premier Dalton McGuinty announced the mandate Nov. 26 while delivering a speech outside Canada's largest ethanol plant, Commercial Alcohols Inc., in Chatham, Ontario.

"This is another part of our plan to improve the health and prosperity of Ontarians," McGuinty said. "Ethanol is a cleaner-burning fuel, so this means cleaner air. It's made from agricultural crops, so this will be a major boost for rural communities. And it's great news for ethanol producers, who can now move forward on new investments and jobs, helping to make Ontario a leader in the emerging bio-economy."

McGuinty's highly anticipated announcement is expected to spur new ethanol plant construction and the expansion of existing facilities in the province. Following the announcement, Bliss Baker, vice president of Commercial Alcohols, said, "Now that we will have the demand, the ethanol industry in Ontario is ready to deliver the needed ethanol."

Ontario's 2007 target for ethanol would be equivalent to taking 200,000 vehicles off the road or reducing annual greenhouse gas emissions by about 800,000 metric tons (882 tons). It has the potential to spark 3,000 new jobs and as much as CAN$500 million in new investment in rural Ontario, according to a statement from the premier's office.

Effective Jan. 1, 2007, a wholesaler's annual gasoline sales must achieve an average of at least 5 percent ethanol content. This may be accomplished by the actual blending of ethanol or through the trading of renewable fuel credits.

In addition to grain-to-ethanol production, the province wants to encourage innovative, state-of-the-art technologies such as cellulose ethanol production, which uses the non-food portion of crops. Ottawa-based Iogen Corp., which has developed a technology to produce cellulose ethanol on a commercial scale, stands to gain considerably from the mandate.

"This is a win," said Iogen Executive Vice President Jeff Passmore. "If all the pieces come together, it increases the likelihood that Iogen will build the first cellulose ethanol plant in Canada."

The Canadian Renewable Fuels Association (CRFA) also hailed the announcement. "With this announcement, all of Ontario can ride renewable," said Kory Teneycke, executive director of the CRFA. "This RFS is good news for consumers, it is good news for Ontario agriculture, and it is good news for the environment."

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