The Canadian government is proceeding with regulations requiring a minimum 5% ethanol blend (E5) in the country’s gasoline by September 2010, according to a report in the Globe and Mail.
Environment Minister Jim Prentice has won cabinet approval to proceed with regulations requiring refiners to include at least 5 per cent ethanol in their gasoline by September, 2010, sources say...The department has invited the industry to a briefing this week in which officials will outline how the government intends to proceed.
...Ottawa claims Canadian grain-based biofuels can reduce emissions by 40 per cent compared to gasoline. But it has not begun to factor in indirect land-use emissions, a highly controversial measure of greenhouse gas emissions that result from deforestation and increased land cultivation needed to feed the demand for biofuels.
A 5% mandate would represent about 2 billion liters (528 million gallons US) annually—a volume that is 50% higher than Canada currently produces.