Canada Invites Industry to Propose Ethanol Plant Projects in Round 2 of Expansion Program

Strategic Insights -

The Canadian government has issued an invitation to industry to submit proposals for the second round of the Ethanol Expansion Program, aiming to construct new fuel ethanol plants or expand existing ones. This move is in line with the country's climate change plan, which seeks to reduce greenhouse gas emissions. A total of C$27.5 million is available for this round, building on the success of Round 1, which supported the construction of six new ethanol plants across Canada. These new plants will produce over 650 million litres of fuel ethanol per year, more than quadrupling Canadian supply.

Key Takeaways:

  • The Ethanol Expansion Program, launched in October 2003, aims to reduce greenhouse gas emissions and increase the use of renewable energy in Canada.
  • A total of C$27.5 million is available for Round 2 of the program to support the construction or expansion of fuel ethanol plants.
  • The six new ethanol plants supported by Round 1 will produce a total of 650 million litres of fuel ethanol per year, more than quadrupling Canadian supply.
  • The Canadian government targets having at least 35% of Canada's gasoline contain 10-percent ethanol by 2010, facilitated by the increase in Canadian fuel ethanol production capacity.
  • Ethanol is a renewable fuel that can be produced from grain or other plant material, reducing greenhouse gas emissions when used as a gasoline substitute.

Statistics:

  • C$27.5 million available for Round 2 of the Ethanol Expansion Program.
  • Six new ethanol plants supported by Round 1, with investments totaling over $450 million and producing a total of 650 million litres of fuel ethanol per year.
  • Over 1,000 retail stations in Canada offer gasoline with up to 10% ethanol to motorists.
  • The Canadian government targets having at least 35% percent of Canada's gasoline contain 10-percent ethanol by 2010.
  • The Ethanol Expansion Program is part of a larger renewable fuels strategy, including support for research and development, exemptions from federal fuel excise taxes, and consumer awareness activities.

Sources:

  • Agriculture and Agri-Food Canada Andy Mitchell's office
  • Resource News International via COMTEX
  • Government of Canada
  • Resource News International News Provided by COMTEX (http://www.comtexnews.com)