The ethanol market for Ontario grain will continue to grow with the announcement that the provincial government is mandating an increase to 15 per cent ethanol in regular-grade fuel.
The Ontario government is promoting the increase in ethanol as a way to reduce a megaton of greenhouse gas emissions per year by 2030, which it says is equal to removing 300,000 cars from the road each year.
“We know about one third of all greenhouse gas emissions in the province comes from transportation which is why increasing the amount of renewable content in gasoline is such an important step towards fighting climate change and driving down emissions,” said Jeff Yurek, Minister of the Environment, Conservation and Parks.
“This change will also help attract investment in ethanol production, create jobs in rural communities and assist the biofuel and agriculture sectors in their long-term economic recovery from COVID-19.”
The province is gradually phasing in the renewable content from the existing 10 per cent requirement to 11 per cent in 2025, 13 per cent in 2028 and 15 per cent in 2030.
The standard, called E-15, should increase the demand for Ontario corn.
“Ontario grain farmers look forward to working with the government and industry to meet this growing need for Ontario corn,” says Markus Haerle, Chair, Grain Farmers of Ontario.
Three million tonnes of Ontario corn are currently used for ethanol each year.
The province also recently announced a consultation process to develop a low-carbon hydrogen strategy. Hydrogen burns cleaner than fossil fuels. The strategy is aimed at reducing emissions from trucks and ships.