What are the Canadian Federal Government Targets for the bio-fuels market?
Recently the Canadian Federal Government has proposed to implement a 5% Renewable Fuels Standard (RFS) for gasoline by 2010 and a 2% RFS for diesel by 2012. A 5% RFS amounts to an annual ethanol market of 2 billion litres, more than triple the current production of ethanol in Canada. Approximately 1/3 of the ethanol demand will be in the Prairie Provinces and B.C. where currently very little ethanol is produced. A 2% RFS would equal an annual Canadian market of 470 to 500 million litres depending on growth projections for diesel fuel consumption. Approximately 45% of bio-diesel demand will be within BC and the Prairie Provinces, and Alberta alone would represent more than 20% of the entire market across Canada.
