May 28, 2010
by Plant Staff
Biofuels are having a positive impact on the Canadian economy: about $2 billion worth, according to a Canadian Renewable Fuels Association (CRFA) study.
The third-party assessment of renewable energy investments, conducted by the Doyletech Corp research firm, analyzed data from 28 ethanol and biodiesel plants across Canada and concluded that the annual positive economic impact of renewable fuels is $2.013 billion.
CRFA, a non-profit organization that promotes the use of renewable fuels for transportation, cited major benefits as “rural re-vitalization, increased oil exports from western Canada, industrial development and valuable options for re-balancing fuel mix.”
Even making allowance for the opportunity costs of alternate investments and alternate feedstock sales, the report concludes renewable fuels plants still represent a positive net economic benefit.
Operating the plants produced 2.25 billion litres of renewable fuels annually with a net economic benefit of almost $1.5 billion and the creation of 1,038 direct and indirect jobs.
The study also noted an estimated annual benefit of $540 million in additional oil exports that are possible because of biofuels production in western Canada.
Constructing the 28 plants at 2010 replacement cost prices amounts to an investment of almost $2.33 billion with net economic activity reaching just under $3 billion (including $100.2 million to municipal governments, $492.1 million to provincial governments, and $679.9 million to the federal government), plus the creation of more than 14,000 jobs.
Click here for a copy of Total Economic Impact Assessment of Biofuels Plants in Canada.
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