Ontario to reconsider 10 percent biofuels mandate, premier says

In Canada, Premier Dalton McGuinty said that the province will reconsider a previously announced move to a 10 percent biofuels mandate in light of rising food prices and the controversy over ethanol. The province has had a five percent mandate in place since January 2007.

Canada background

A study by a University of Guelph researcher concluded that first generation biofuels are up to seven times more expensive than other methods to reduce greenhouse gas emissions, while second-generation biofuels are not economical to produce. The report prompted a critical review by the Vancouver Sun of the Canadian government’s biofuels strategy.

The Canadian Renewable Fuels Association said that Canadian biofuel capacity would reach 265 Mgy this year with production at 238 Mgy. Production capacity will increase to 350 Mgy in 2009, the group said.

Last month, the House of Commons passed the C-33 Biofuels Bill, by a vote of 173 to 64, and the bill now moves to the Canadian Senate for consideration. The bill establishes an E5 mandate for gasoline commencing in 2010 and a B2 biodiesel mandate commencing in 2012.

“Natural Resources Canada’s GHGenius lifecycle model finds that the renewable fuel standard as outlined in Bill C-33 will result in a 4.2 megatonne reduction in harmful greenhouse gas emissions – the equivalent of removing over one million cars and their CO2 emissions from Canadian roads, every year” said Don O’Connor, President, S&T squared Consultants.

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