BIOFUEL BILL PASSED IN COMMONS

The Liberals and Conservatives worked together to ensure passage of a bill yesterday that will ensure all gasoline sold in Canada contains 5 percent ethanol by 2010.

The legislation would create demand for an estimated 2 billion liters of ethanol and 600 million liters of biodiesel.

There are currently three biodiesel plants with a combined capacity of 97 million liters, mainly using animal fats. A plant that would produce 225 million liters of biodiesel from canola oil is under construction in Alberta.

There are concerns that the move towards biofuels is creating other environmental problems like the loss of food crops which may lead to higher prices for staples. As well the loss of tropical forests to make room for corn crops may be undoing any benefits of the fuel by eliminating natural filters of green house gases.