18 ONTARIO IS HOMEto bountiful and sustainable biofuel feedstocks with an established legacy and strong prospects for biofuel production. In 2022, corn and soybeans were Canada’s third and fifth largest field crops, respectively. Ontario farmers led over 60 per cent of Canada’s production of these crops, growing nearly 10 million metric tonnes of corn and four million metric tonnes of soybeans. Ontario corn has played a significant role in first-generation Canadian biofuel production, and Ontario grain farmers have actively collaborated with industry and government to build the Ontario ethanol market. Ethanol provides critical market diversification for Ontario agriculture, giving use to downgraded crops, and it supports a circular economy, with one-third of the grain going back into animal feed as dried distiller’s grains and oils. Ontario’s six ethanol plants use local corn as a feedstock, collectively making up over a third of Ontario’s corn end-use market. However, with half of Canada’s ethanol currently being imported, a proportion of our grain currently being exported, and nextgeneration demand opportunities crystalizing globally, there is scope for greater onshoring of value-added biofuel production. PROSPECTS FOR BIOFUELS IN CANADA Grain Farmers of Ontario’s Strategic Plan has a market development objective explicitly focused on ensuring the viability of the biofuels and bio-products industries as a market for our grains. Over the last few years, the focus has been on Canada’s Clean Fuel Regulations, which incentivize fuel producers to purchase liquid biofuels through a crediting system to reduce emissions from the fuel supply. Grain Farmers of Ontario has worked to ensure these regulations work for farmers and create value for the sector without adding undue complexity or administration and has also advocated for Ontario’s E15 mandate, which is due to be transitioned into force by 2030. Another policy change set for the 2030s is Canada’s proposed regulated sales target for zero-emission vehicles. This policy creates uncertainty for the ethanol sector and corn farmers." create uncertainty for the ethanol sector and corn farmers. It also provides significant uncertainty for future consumer equity and affordability when it comes to transportationoptions. Grain Farmers of Ontario has encouraged the government to pursue strategies that allow for technologyagnostic decarbonization of transportation so that all potential pathways, including corn ethanol, can continue to contribute while creating value for farmers. Grain Farmers of Ontario has continuously advocated that Ontario corn ethanol is a proven, immediate, clean, affordable, and accessible biofuel that supports the decarbonization of the Canada’s industrial biofuel strategy ONTARIO’S CROP-BASED CLEAN FUEL POTENTIAL Dana Dickerson transportsector while ensuring energy security, affordability, and equity for Canadians. Despite this uncertainty, there is reason to remain bullish on Ontario corn ethanol, which, despite being associated with lightduty transportation, has diverse applications. Last year, Kawartha Ethanol invested $37 million into an expansion to produce highquality alcohol, including grain-neutral spirits, in addition to fuel ethanol. In August 2023, Greenfield Global announced a new purposebuilt warehouse in the Greater Toronto Area to help them meet escalating demands for high-purity solvents and alcohols for the pharmaceutical, food and beverage, and industrial product industries In September, they completed a 30 million gallon alcohol upgrade at their Johnston distillery. And when it comes to fuel ethanol, any transition to a zero-emissions vehicle consumer fleet is going to take place over decades and is expected to include plug-in hybrids. DRIVING FORWARD FUTURE MARKET OPPORTUNITIES That said, Grain Farmers of Ontario is actively taking up the challenge to explore and encourage new market opportunities for Ontario corn ethanol and crop-based biofuels. Looking ahead, there is strong potential for a new generation of agriculture-based biofuels tobe produced in Ontario using Ontariogrown feedstocks, particularly corn- or soybased renewable diesel, sustainable aviation fuel (SAF), ethanol-based hydrogen fuel, and renewable natural gas. The future global demand for SAF is projected to be significant. While the production of renewable diesel and SAF from hydrotreated esters and fatty acids is today’s focus, if Ontario’s corn ethanol production is maintained, it could play a significant future role as technologies scale. As an abundant, clean, and transformationready product, Ontario’s corn ethanol production has potential in SAF with alcoholto-jet technology. Market Development
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