GFO welcomes proposed increase to ethanol mandate in Ontario


Grain Farmers of Ontario (GFO) is welcoming the Ontario government’s proposal to increase its ethanol mandate in gasoline from 5 to 10 percent in 2020.

The province’s environment ministry published draft amendments last week to update the renewable fuel regulations under the province’s Environmental Protection Act.

“We are pleased to see the Ontario government committed to growing the ethanol market in Ontario,” said GFO chair Mark Brock in a statement on Monday. “Corn ethanol produced in Ontario increases market opportunities for local farmers. It is also an effective way to reduce greenhouse gas emissions from cars on the road and the ethanol industry generates jobs and economic activity for the province.”

The amendment would require ethanol emit significantly fewer (e.g. 35%) greenhouse gas emissions on a lifecycle basis than regular gasoline.

“In moving to a 10% ethanol requirement, Ontario is showing leadership in the fight against climate change. This policy will generate a substantial reduction in GHG emissions, while creating jobs and economic growth. This is what clean growth is all about,” noted Jim Grey, chair of Renewable Industries Canada.

The province says it’s also exploring options “to support biofuel production and innovation through a Blenders Support Program (BSP) including potential funding of up to $155 million for fuel refiners to make infrastructure upgrades…”

GFO and biofuel industry groups are highlighting a study completed earlier this fall by Doyletech Corporation that said raising the provincial ethanol mandate to 10 percent would add $638 million per year to Ontario’s economy.

The federal government is also considering raising its 5 percent biofuel mandate for gasoline, as it’s working on a new “Clean Fuel Standard.”

Related: Why the Canadian ethanol industry could be set to grow

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