In Canada, yesterday, with the IGPC farmer- owned ethanol plant in Ontario holding its official opening, Canada has now passed the one billion litres per year production level for ethanol. This marks the halfway point towards hitting the federal renewable fuel standard target of 5% renewable content in gasoline by 2010.
And, last week, Alberta (the Canadian province which produces over one million barrels of oil per day, has reserves of crude second only to Saudi Arabia in the world, and is the single largest exporter of oil to the U.S.) announced they are moving to a renewable fuel standard of 5% ethanol and 2% biodiesel by 2010; a very significant development. This province is building on their strong energy and agricultural sectors, moving towards creating new green jobs and diversifying both industries. Not only is Alberta a large producer of wheat and canola for ethanol and biodiesel production, respectively, but as was announced this past June, the Edmonton municipal landfill will see the world’s first commercial-scale waste to ethanol facility being built there next year.
Both positive announcements show Canada continues to grow beyond oil.
There’s an interesting story gaining some traction in Canada this week.
According to Reuters, officials in India are encouraging people to eat rats instead of rice to alleviate some food shortage concerns. But that’s not the most intriguing part:
“Eating of rats will serve twin purposes — it will save grains from being eaten away by rats and will simultaneously increase our grain stock,” Vijay Prakash, an official from the state’s welfare department, told Reuters.
Officials say almost 50 percent of India’s food grains stocks are eaten away by rodents in fields or warehouses.
The story has been picked up by the Canadian media. Here’s some commentary from Kevin Hursh that runs on the daily ag radio in western Canada:
It’s estimated that nearly 50 per cent of India’s grain stocks are eaten by rodents, either in the field or when the crop is being stored in warehouses. According to a report this week by Reuters news service, authorities in Bihar, one of India’s poorest states, are calling on everyone to eat rats. There are even plans to offer rats on restaurant menus. Rat meat is already eaten by some people in India. The Bihar government argues that more people dining on rats will lower human consumption of grain. Plus, there will be fewer rats to eat grain. Cultural differences pertaining to animals and food are amazing. Depending upon your faith, you may not eat pork or you may not eat beef. Most people in North America are turned off by the idea of eating dogs and horses because they’re companion animals. The aversion to rats is because they’re dirty rodents. It is an amazing statistic though that nearly 50 per cent of the grain in India is destroyed by rodents. Makes you wonder why there are so many people who obsess about the amount of grain used to produce biofuels. I’m Kevin Hursh.
A few weeks back, the C.D. Howe Institute (a think tank in Canada) released a report that generated a fair bit of news coverage. The report, ‘The Ethanol Trap: Why Policies to Promote Ethanol as Fuel Need Rethinking’, was riddled with errors and flawed assumptions.
In order to demonstrate beyond a shadow of doubt the faulty methodology and false conclusions, the CRFA commissioned an independent, arms-length analysis by (S&T)2 Consultants. It demonstrated that our concerns were very well founded. The critique highlights indisputable contradictions in logic and methodology that suggest the report was drafted to support a conclusion rather than to explore the facts in full.
This week, the CRFA has released the full report to the media and public. We have also shared the results with the C.D. Howe Institute and asked that they withdraw the work, given its many obvious errors. Key stakeholders, policymakers, and elected officials have also been provided with the report to ensure that their own impressions are balanced by rigour and fact.
With oil and gas at record prices, we have an economic and environmental imperative to grow beyond oil. That is the indisputable benefit of biofuels. The CRFA will continue to advocate for policies that meet the needs of consumers and that ensure Canada maintains and grows its position of international leadership in developing clean and green fuels for the future.
(To this end, but on a different note, give our new radio ad a quick listen. Enjoy!)
As oil hit yet another all-time high yesterday at $140 per barrel, some outstanding news came in a major announcement out west in Edmonton, Alberta, where GreenField Ethanol and Enerkem announced they are going to be building the world’s first industrial scale municipal waste-to-ethanol facility in the city of Edmonton, Alberta. The $70-million next-generation renewable fuels plant will initially produce 36 million litres of ethanol from inedible non-recyclable waste products every year.

Later in the afternoon in Canada’s capital of Ottawa, the federal renewable fuel standard (RFS) became law, which will require 5% renewable content in gasoline by 2010, and 2% renewable content in diesel by no later than 2012. The federal RFS and commercial cellulosic ethanol plant bring great news for the environment, farmers, drivers, and all Canadians.
Pull out your cheap-gas-o-meter lately? It’s pointing directly to Missouri, where gas prices are much lower than the national average. In fact, they have the cheapest gas in the nation-and cheaper than anywhere in Canada. Elsewhere, you can expect to spend over $4 at the pump. Missouri? A relatively cool $3.82.
Why the drop? According to an “Explainer” article in Slate Magazine, part of the reason is ethanol.
Yet one piece of legislation designed to help the environment may have had the unusual effect of reducing gas prices in Missouri—at least in the short term. At the beginning of this year, the state implemented a new law requiring that all gasoline include 10 percent ethanol. With the price of crude oil rising much faster than that of ethanol, the new formulation may save consumers about 10 cents per gallon (PDF) relative to regular gas.