Renewable energy, such as ethanol and bio-diesel fuel, presents Canada with unique opportunities for improving air quality in our urban centres, working towards the commitments outlined in the Kyoto Protocol, and provides value added processing opportunities for our grains and oilseed farmers.
We believe that this is an area in which Canada can excel on the international stage. Unfortunately this is not the case. For example, Canada 's current production of ethanol falls far short of domestic demand, forcing the importation of ethanol from abroad.
On average the United States builds a new ethanol plant every month. This compares with one new Canadian ethanol plant in the last ten years. Clearly Canada is at risk of falling behind our largest trading partner in this field.
It is also important to note that the technology for bio-diesel fuel production has also made significant progress. We are now in a position to commercially provide bio-diesel (e.g., made from soybeans or canola). Bio-diesel fuel is a value-added opportunity that needs to be pursued.
The bio-products industry extends beyond ethanol and bio-diesel fuel. Commercial opportunities also exist for the production of polylactic acid from cornstarch used to make clothing and films, wheat straw fiberboard, etc. We believe that the Government of Canada can assist in the development of the bio-products sector with appropriate policy developments.
Effective policies would encourage the creation new infrastructure necessary for the development of Canada 's bio-products industry and ensure that the business climate of Canada is geared for proactive innovative opportunities with supportive research and development.
We must emphasize that an effective bio-products policy would encourage the development of bio-products that are made in Canada and derived from Canadian feedstocks. Policies that encourage the development of an industry that processes foreign grains and oilseeds would not be considered a success.
