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Ethanol use cuts GHG emissions: CBOC

The Canadian ethanol industry produces two billion litres a year, while driving $900 million in government revenues


November 7, 2011
by CanadianManufacturing.com Staff

OTTAWA—A new report by the Conference Board of Canada (CBOC) suggests ethanol can reduce green-house gas emissions and that federal renewable fuel standards will likely increase Canadian production, which is currently about  two billion litres a year.

The study assesses the economic impact of the ethanol industry in Canada, its environmental and health effects and the balance between the energy required to produce ethanol and the amount of energy generated.

It also looks at the economic impact of the ethanol industry, examining the policy objectives underpinning government support of the ethanol industry and its future opportunities.

Ethanol blends of 10 per cent reduce GHG emissions by four to six per cent compared to gasoline.

If a 100 per cent ethanol blend were available, GHG emissions could be reduced by 62 per cent, depending on production technologies and energy sources.

The economic impacts of ethanol production and use come from plant construction and operations as well as government financial support of the industry. Canada’s ethanol industry is worth about $1.2 billion a year to the Canadian economy.

Government support is estimated to average $260 million annually from 2006 through 2012.

An estimated $925 million in government revenues is generated during the construction of ethanol plants, while annual operations bring another $240 million into government coffers.

The biofuels industry accounts for more than 14,000 person-years of employment during construction phase and over 1,000 permanent jobs once plants are in operation.

Click here for Ethanol’s Potential Contribution to Canada’s Transportation Sector.