World Grain - May 2012 - 84

BIOFUELS BUSINESS QUARTERLY

Canada’s push
for biofuels
by Susan Reidy

hile Canada’s projected ethanol capacity has increased more than 60% in the last ﬁve years, in order to keep following that upward trajectory the nation will need to develop next-generation technologies that use cellulose as a feedstock. Ethanol production in 2011 was estimated at 1.35 billion liters, an increase of 12.5% from 2010. This year, total production is estimated at 1.375 billion liters, according to a report from the U.S. Department of Agriculture’s (USDA) Foreign Agriculture Service (FAS). Capacity, however, is expected to reach 1.833 billion liters this year, an increase of 61% from 2007. Corn and wheat are the largest sources of feedstock, but Canada has great potential for cellulose ethanol production given the availability of forest residues and other waste. Several companies are working toward commercialization and hope to be the ﬁrst across the ﬁnish line. Second-generation technologies will be key to further expanding Canada’s production capacity and greatly enhance ethanol’s contribution to the nation’s transportation fuel mix, according to a report from the Conference Board of Canada. “Expanding the market will create new supply opportunities. Next-generation technologies that are currently at the demonstration stage are expected to meet a large share of market growth,” the board said. “Canadian governments can support clean energy innovation by partnering with the industry to support continued technology development.” EXISTING PRODUCTION Existing government policies, including funding programs and mandates at the federal and provincial level, have played
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Nation increases traditional renewable fuel production while moving toward cellulose commercialization
a large role in ethanol’s advancements in Canada thus far. As of Dec. 15, 2010, Canada has required a 5% blend of ethanol in its gasoline pool. Many provinces have their own mandates, many higher than the nationwide requirement, including Saskatchewan that requires 7.5% of fuel be ethanol and Manitoba that requires 8.8%. Multiple funding programs were introduced with the government’s renewable fuels strategy including: per liter production incentives; repayable loan programs; research funding; and a next-generation fuel fund. Provincial governments also have provided funding programs. Corn is the leading feedstock, accounting for 77% of Canadian ethanol production in 2011 and 2012. Ontario is the largest corn-producing province, producing 58% of the nation’s ethanol. Wheat accounts for most of the remaining production at 23% in 2011 and 2012. The newer wheat ethanol plants have more ﬂexibility, the FAS said, so other feedstocks can be used when wheat is too expensive. For example, Husky Energy’s plant in Minnedosa, Manitoba uses corn when wheat is unMay 2012 / World Grain / www.World-Grain.com

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World Grain - May 2012

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