Canadian Renewable Fuels Association (CRFA)

Canadian Renewable Fuels Association (CRFA)

September 22, 2005 12:30 ET

The Canadian Renewable Fuel Association: Fuel Change Would Moderate Gas Prices

OTTAWA, ONTARIO--(CCNMatthews - Sept. 22, 2005) -

Federal fuel standard requiring 10% ethanol will help deliver relief

The Canadian Renewable Fuel Association today called for a federal renewable fuel standard requiring 10% ethanol content in gasoline by 2010 to help moderate severe gas price spikes and offer consumers some relief at the pump.

"A significant part of the solution to today's high gas prices lies within our grasp," said Executive Director Kory Teneycke. "The time has come for a national renewable fuels standard requiring 10% ethanol content in gasoline by 2010. It is a realistic and achievable goal. It would diversify our energy supply, add to our refining capacity and help moderate price."

Teneycke made the so-called "E10 by 2010" proposal appearing before a Special Parliamentary committee studying the recent surge in gas prices. Ethanol-blended gasoline can be used in every car on the road today and can be easily integrated into our existing fuel infrastructure. It is made from homegrown commodities like corn, wheat, and even straw.

Of the 40 billion litres of gasoline consumed in Canada everyday only 300 million litres are renewable - less than 1%. A virtual crude monopoly and a severely limited gasoline refining capacity have made Canadian consumers extremely vulnerable to disasters such as Katrina and Rita.

"If Canada were to embrace a national fuel strategy to expand the use of ethanol, we would break the crude monopoly," added Teneycke. "Such a mandate would spur the construction of an entire new series of ethanol plants. These plants would be the equivalent of building a new, 200,000 bbl/day petroleum refinery. A fuel change would deliver relief."

Ontario is implementing a renewable fuel standard requiring 5% ethanol be blended in gasoline by 2007. Similar requirements are being implemented in Saskatchewan and Manitoba. The federal government has just completed the Ethanol Expansion Program, providing $100 million in grants to increase Canadian ethanol production. The United States just passed a new energy bill requiring 28 billion litres/year. Similar fuel standards are being implemented around the world - China, India, Japan, Brazil and the EU.

Contact Information

  • Canadian Renewable Fuel Association
    Christine Albee
    (416) 304-1324