News Release - March 21, 2002
PLAN TO DEVELOP ETHANOL INDUSTRY
The provincial government has unveiled its plan to grow a vibrant ethanol
industry in Saskatchewan.
The Greenprint for Ethanol Production in Saskatchewan was released today by
Energy and Mines Minister Andrew Thomson. The strategy, which is the
result of extensive consultations, outlines several key actions the
government intends to take to create an environment for private sector
development of an ethanol industry in the province. These actions include:
effectively eliminating the provincial fuel tax on ethanol produced
and consumed in Saskatchewan by way of a rebate;
approving legislation to permit the mandating of ethanol-blended
gasoline to be sold in Saskatchewan;
working with the federal and provincial governments to remove
barriers on ethanol exports;
calling on the federal government to legislate a mandatory blending
of ethanol gasoline in Canada;
working with ethanol producers to encourage the establishment of
ethanol facilities in the province; and
working with wholesalers and retailers to develop a market for
ethanol-blended fuel in Saskatchewan.
"Saskatchewan has many natural advantages when it comes to producing
ethanol and we are committed to maximizing this opportunity," Thomson
said. "Our strategy will support the development of ethanol in
Saskatchewan, it will support efforts to reduce the effects of global
warming and it will support the rural economy with new value-added
opportunities for farmers."
Ethanol offers both environmental and economic benefits for the people of
Saskatchewan. Ethanol is a high-octane, water-free alcohol that is made
from the fermented sugar or converted starch found in many Saskatchewan
products including wheat, straw and wood by-products. It is a renewable
resource that burns cleaner than gasoline. When blended at ten per cent
with traditional fuels, it can reduce carbon monoxide and carbon dioxide
emissions by as much as 30 per cent.
"The development of the ethanol industry holds tremendous potential for the
growth and diversification of our rural economy," Deputy Premier and
Agriculture and Food and Rural Revitalization Minister Clay Serby
said. "The Action Committee of the Rural Economy identified the expansion
of the ethanol industry as a prime opportunity, and our strategy will focus
on maximizing the economic benefits for rural Saskatchewan and for the
province as a whole."
Thomson also noted the private sector will play a significant role in
defining what the ethanol industry will look like and how it will operate.
"Government realizes the need for the private sector to take the lead in
developing Saskatchewan's ethanol industry. Our role will be to create the
right climate for growth and provide support through tax incentives and
legislation," Thomson said.
For more information, contact:
Economic and Co-operative Development
Phone (306) 787-1691