Ontario’s Renewable Fuel Standard Enables New Supply

Ontario is planning to construct five new ethanol plants to fulfill the Renewable Fuel Standard (RFS) requiring 5 percent ethanol in the province’s fuel supply by 2007.

“The Renewable Fuel Standard will spur the construction of five new ethanol plants, increase our overall supply of fuel, and as a result moderate prices at the pump,” said Kory Teneycke, Canadian Renewable Fuels Executive Director. The Renewable Fuel Standard (RFS) is a flexible, market orientated means of achieving a 5 percent ethanol content in the Ontario gasoline pool by 2007. The RFS will increase the quantity of fuel produced in Ontario by 600 million liters per year. The RFS provides significant incentives for oil companies like Ottawa’s Iogen Corporation, developer of low C02 cellulose ethanol, as it includes a 2.5 to 1 bias for the use of cellulose ethanol in Ontario. “The Renewable Fuel Standard is fueling change across this country,” said Jeff Passmore, Iogen Executive VP. “This provides a considerable incentive for the construction of advanced bio-refineries, such as an Iogen cellulose ethanol plant, in western Canada.” Canadian refineries currently run at 97 percent capacity, making the nation’s fuel supply vulnerable to natural disasters and political disruptions abroad. In 1994, the Canadian Renewable Fuels Association (CRFA) formed to promote renewable fuels for automotive transportation through consumer awareness and government liaison activities. Its membership is comprised of representatives from all levels of the ethanol and biodiesel industry, including corn and cellulose ethanol producers, biodiesel producers, fuel technology researchers, agricultural associations, and environmental organizations concerned with air quality.

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