The case for biofuels in our energy mix
FP energy: Future now
Fossil fuels are an integral part of the global economy, and will be for many years. But that doesn’t mean we can’t continue to introduce alternatives into Canada’s energy mix or explore new, innovative fuel sources. One of the greatest hurdles we have to overcome isn’t technological or structural — it’s debunking myths and misperceptions about renewable fuels that prevent us as a society from seeing the benefits clearly.
Canada is in a unique position. We have the resources, the science, the technology and the knowledge to become a world leader in renewable fuels — meeting not only our domestic energy demands but also serving the international market, and setting a new global standard for cleaner energy in the process. To do that, we need the right support — from government, the private sector and the public.
But first those same stakeholders need good information about renewables. Still today there are people who accuse ethanol crop production of competing with food, for example. But each year there are approximately five million acres of unused prime land in Western Canada alone that could contribute to ethanol and biodiesel feedstocks. Despite the rapid expansion in ethanol production since 2004, the increase in feedstock demand has been met through surplus and higher yields, not new farmland. There have been no increases in cropped areas or land use change in Canada.
The belief that biofuels are unfairly supported by the government is also demonstrably false. Projections show that the tax revenues collected on ethanol alone will more than cover any subsidies. And safety- net payments to farmers have dropped by $1.2-billion this year thanks to the increased value of biofuel feedstock.
To make the most of Canada’s opportunity to lead the world in renewable fuels and sustainable technologies, we need to push through the myths and continue down the path of diversifying our energy mix.
Canada is in a unique position
The ‘ Growing Beyond Oil’ industry report card released in 2011 shows how far we have come in a short time. Over the past five years, we have invested more than $2.3-billion in biofuel production facilities.
The returns on that investment, and others we have made in renewable fuels, have been impressive. Twobillion dollars are flowing into the economy every year, and more than a thousand direct manufacturing jobs have been created — along with 14,000 direct or indirect jobs in the construction industry. Not only that, but over the next 25 years, Canadians will see $2.5-billion in savings at the pump.
Our agricultural industry has seen equally substantial returns. The local price for grain sold to ethanol producers has jumped between 10¢ and 25¢ per bushel, totalling more than $50-million a year, and new markets have been created for a variety of by-products.
The environmental benefits are just as significant. A Conference Board of Canada report, ‘Ethanol’s Potential Contribution to Canada’s Transportation Sector,’ highlights that every unit of energy put into ethanol production provides a 230% return. Today’s ethanol reduces GHG emissions by 60% — and the next generation could raise that to 87%. With transportation representing Canada’s primary source of emissions, moving to a 5% ethanol mix in fuel is equivalent to removing a million cars from our roads.
To transform these benefits into the foundation for Canada’s energy future, more work needs to be done.
The government’s Renewable Fuels Strategy is a step in the right direction. Investing $1.5-billion into renewable fuel production will give us the opportunity to establish ourselves as major players in the energy sector, while a mandated percentage of renewable content in gasoline and the distillate pool — the annual production/importation of fuel — will help the industry continue to grow and stabilize. But we need to go further. Advanced biofuels can be formally included in the federal alternative energy agenda to spark further investment and innovation. We know ethanol and biodiesel work, but what other ideas, approaches and technologies can propel Canada to the forefront of renewable energy research?
We also need to increase biofuel levels in the transportation fuel mix, and push for the adoption of flex-fuel vehicles, stimulating the infrastructure of blender pumps and biofueling stations we need to green Canada’s major transportation corridors.
Here in Canada, we have everything we need to lead the world in renewable energy while creating jobs, reducing emissions and growing our economy. We have the talent, the resources and the expertise to diversify and strengthen our energy mix. Most importantly, we’ve got the opportunity to change the way the world uses energy, and the responsibility to make it happen.
Tim Haig is the Interim president and chairman of the Canadian Renewable Fuels Association.