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Posted on  

September 18, 2000

Ethanol Expansion Continues in Canada

According to the Canadian Renewable Fuels Association (CRFA), domestic ethanol manufacturers are continuing to expand their facilities in order to meet a growing demand for the fuel additive. CRFA said that Canada's annual ethanol production capacity is expected to boom from current levels of about 238 million liters to almost 675 million liters in about three years.

CRFA spokesperson Terry Boland credited the predicted expansion on growing fuel and industrial alcohol markets. Additionally, Boland said that Canadian manufacturers are not producing enough ethanol to serve the market of almost 1,000 stations that provide fuel ethanol.

"Canada currently imports about 25 million liters of ethanol annually to make up for the shortfall," said Boland. Additionally, Boland said that government sponsored programs to combat global warming are expected to contribute to the expansion and increased use of ethanol. "The simplest way for governments to tackle those issues will be the development of ethanol-based fuels."

Boland said that many Canadian ethanol manufacturers have plans to expand facilities in order to take advantage of the expected rise in demand. However, many new or foreign companies are also investigating the possibility of expanding interests into the Canadian ethanol production industry.

"We have to be accepted by investors, by bankers and we have to eventually be accepted by the major oil companies who have probably hoped that [the ethanol] industry would not succeed," said Boland. "We have started to be accepted quite well by customers and that is the most important thing of all."


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