The Canadian Renewable Fuels Association is investigating whether the United States is dumping ethanol into Western Canada.
“We’re certainly monitoring it and if we feel that there is any indication that producers here are being placed at some form of unfair disadvantage, we’ll act swiftly to correct the situation,” said CRFA president Gord Quaiattini.
The association is responding to concerns raised by some of its members about the volume of ethanol coming in from the U.S. and the price of that imported fuel.
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Data from the U.S. Renewable Fuels Association shows Canada was the top importer of U.S. corn ethanol, buying 449 million litres in 2010.
That represents 21 percent of the estimated 2.1 billion litres of ethanol blended in Canada last year, up from 17 percent in 2009.
“Those numbers are high and we are taking a look at the data and trying to determine the reasons of that volume of ethanol coming into the market,” said Quaiattini.
European ethanol producers are also upset about the amount of U.S. product Europe is importing. The industry estimates 12 percent of the five billion litres of ethanol consumed in the European Union in 2010 came from the U.S.
Reuters News Agency reports that European ethanol producers will know by the end of the month whether they have a strong enough case to file a legal complaint with the European Commission over subsidized U.S. imports.
Quaiattini said his members’ main concern is whether American ethanol plants are receiving the 45 cents US per gallon blender’s credit for imported ethanol, which is not allowed.
“We’re not trying to be alarmist or anything but we’re going to take a look at it. We want to make sure it’s fair,” he said.
Quaiattini suspects the vast majority of imported U.S. ethanol is used to fill provincial mandates in Western Canada. He acknowledged that part of the problem is a lack of Canadian supply. Construction of wheat ethanol plants has been disappointing.
Kevin Bender, president of the Western Canadian Wheat Growers Association, supports an open border for trade but said he would rather see Canadian produced ethanol fill the mandates.
“Ideally, we’d like to see that happen here, that we’d be able to supply all of our needs here at home because that would use up more of the wheat that we grow,” he said.
Quaiattini anticipated there will be new ethanol plant construction in Western Canada in 2011.
“It’s certainly our expectation that there will be a large-scale ethanol plant that will be realized in Alberta.”
Alberta Ethanol and Biodiesel GP Ltd. signed an ecoEnergy for Biofuels contribution agreement with Natural Resources Canada March 8, paving the way for construction of a plant near Innisfail, Alta.
