As the home of Canada’s most significant existing biofuel feedstock production, ethanol processing, and biofuel consumption, Ontario should be a natural priority region for next-generation investment. However, there are challenges to be addressed in Canada’s investment ecosystem, including the capital cost to construct facilities, the ability to compete against U.S. subsidies, policy uncertainty, and the establishment of agricultural residue feedstock collection and marketing infrastructures. With this in mind, Grain Farmers of Ontario has encouraged the government to develop a Canadian biofuel strategy that considers current and future generation uses for corn ethanol, existing assets, and the significance of this market for Ontario farmers. For market and decarbonization potential to be fully realized, the government must collaborate with Ontario grain farmers and the value chain to foster an innovation and investment ecosystem that guarantees investor confidence. This will require robust enabling policy and incentives that provide regulatory predictability and make our region and crops competitive with the U.S., which is aggressively investing in biofuel infrastructure and production, generating substantive feedstock demand opportunities stateside. It is critical that the government acts immediately and addresses within the next 10 years to realize opportunities for corn and soy agricultural residue-based renewable diesel, sustainable aviation fuel, and renewable natural gas. This is required to establish competitive project returns that ensure project commissioning and allow for project development, permitting, finance, and construction time requirements. Grain Farmers of Ontario is also working with industry, maintaining regular engagement with all our biofuel processors. We recently supported industry efforts to secure a Bioeconomic Development Opportunity Zone rating for Sarnia-Lambton, which will support further investment into the region. This year, our Grains Innovation Fund established five strategic priority investment themes, including one focused on developing next-generation bio-economy grainsbased solutions such as renewable diesel, sustainable aviation fuel and bio-based materials. While the future market and policy landscape is never crystal clear, the potential prospects for Ontario biofuels are coming into focus. The policy, cooperation and farmer-centric strategies that led to the creation of Ontario’s ethanol industry provide an excellent roadmap for a nextgeneration biofuel sector in the province. Grain Farmers of Ontario will continue to track this market closely, engaging with industry and government to share that message and ensure a bright future for Ontario agriculture. Dana Dickerson is Grain Farmers of Ontario’s manager of market development and sustainability. l ONTARIO GRAIN FARMER 19 OCTOBER 2023 For market and decarbonization potential to be fully realized, the government must collaborate with Ontario grain farmers and the value chain. HARVEST the WAVE Maizex offers high-performance corn, soybean, and forage seed developed for Canadian farmers by a company owned by Canadian farmers. FIELD by FIELD | maizex.com Ride the wave to higher yields. Maizex_OGF_Harvest_3.46X8.865_8_23.indd 1 8/28/23 10:36 AM
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