Gasoline in Canada's most populous province will contain an average of 5 percent of pollution-reducing ethanol by 2007, the Ontario government said Friday.
WINNIPEG, Manitoba − Gasoline in Canada's most populous province will contain an average of 5 percent of pollution-reducing ethanol by 2007, the Ontario government said Friday.
Gasoline wholesalers can blend with ethanol, an additive made from corn and other plants, or trade renewable fuel credits to reach the target, the provincial government said in a news release.
The ethanol mandate will reduce greenhouse gas emissions by about 800,000 tonnes, the equivalent of taking 200,000 cars off the road, Ontario said.
Canada currently produces about 274 million litres (72 million U.S. gallons) of the additive and imports another 100 million litres (26 million U.S. gallons) a year, mainly from the United States.
Ontario's mandate creates a potential market for 750 million litres (198 million U.S. gallons) of ethanol, according to industry figures.
The announcement was hailed by ethanol producers in the province, including a farmer-owned co-operative that hopes to build a C$86 million ($73 million) plant using 12 million bushels of corn per year.
Integrated Grain Processors Co-operative said the mandate will help it secure financing for its plant proposed for Brantford in southwestern Ontario.
But the Ontario Corn Producers Association warned the province still needs to develop programs to ensure the mandate encourages new production plants are built in the province.
"It will certainly expand the market for ethanol, but the question is, where will it come from?" said Brian Doidge, general manager of the farm lobby group.
"We are concerned about simply attracting more imports of ethanol, and we still have that concern," Doidge told Reuters.