Ethanol in Ontario will now have a required amount of Canadian content.
The provincial government outlined the requirements in an August 8 update, stating “we are introducing domestic content requirements under the Cleaner Transportation Fuels regulation mandating that at least 75 per cent of the renewable content required in diesel fuel and 64 per cent of the renewable content required in gasoline be produced in Canada.”
The requirements follow the advocacy of groups like the Farms and Fuels Alliance (FFA) formed last year of the Grain Farmers of Ontario (GFO) and several Ontario ethanol producers, who aimed to present a unified voice for the biofuel sector. The Ontario government specifically cited feedback from biofuel providers in the details of its decision, saying they raised concerns over the U.S. clean fuel production credit, which gives American providers a competitive edge.
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Ontario generates 70 per cent of Canada’s ethanol. Around one third of corn grown in the province is used for ethanol production.
Andrea Kent, vice-president, Industry and Government Affairs for FFA member organization Greenfield Global, called the content requirements critical to Ontario’s clean energy future.
“This regulation demonstrates the government’s commitment to practical, local solutions that protect our renewable fuel capacity and strengthen rural Ontario communities,” said Kent in a FFA release.
“We’re pleased that Ontario has recognized the vital role of domestic biofuel producers by including Canadian ethanol in the final regulation.”
In a follow-up email interview, Kent told Farmario this announcement does not change FFA’s goals but reinforces them.
“The (FFA) was created to connect farmers and ethanol producers and to make sure Canadian crops power Canadian fuels,” Kent wrote. “This announcement reinforces that mission. It gives us a stronger policy framework to point to, but our goal stays the same: building a sustainable domestic industry that supports farmers, rural jobs, and clean fuels for drivers.”
GFO Chair Jeff Harrison said in the release the benefits from the new rules will be especially welcome amidst losses from this year’s poor weather.
“This commitment by our provincial government provides a welcome and needed stability for this vital market for Ontario grains,” said Harrison.
Kent said, “the domestic content provision reflects today’s market realities and helps create a more balanced and stable environment for Ontario producers and growers, while maintaining strong overall demand for renewable fuels.”
She said the rules will directly impact rural Ontario communities as “most plants source corn from within 100 kilometres” and this initiative will ensure more domestic corn is used.
She added Greenfield already sources “the vast majority” of its corn from within that 100-kilometer radius.
