Dramatic change is happening in Canada and around the world. For more than a century, the world economy has depended on oil as the sole energy source for transportation to fuel new growth and sustain our way of life. We can no longer afford that luxury.

Very real concerns with supply and harm to the environment are driving the search for viable new alternatives to oil. As the price of oil hovers around $100 (U.S.) a barrel, the necessity for alternatives has never hit closer to home.

At the same time, the bio-economy and rapid biotechnology advances are taking root. So far, one of the areas of great impact has been biofuels.
Biofuels, such as ethonal and biodiesel, have emerged as the only economically feasible and environmentally friendly alternative to oil. Biofuels are not only better for our environment, they are revitalizing farming communities, increasing our fuel supply, and moderating ever increasing prices at the pump.
By 2010, ethanol is expected to account for about 5 per cent of the world’s fuel supply. It is the first real alternative to challenge the oil monopoly. We have literally begun to grow beyond oil. Here at home, the federal government has set an average renewable content of 5 per cent ethanol and 2 per cent biodiesel in Canada gasoline and diesel fuel. This renewable fuel standard (RFS) will guarantee a future market of three billion litres of biofuels in Canada. Similar mandates exist in Ontario, Saskatchewan, Manitoba, and soon in British Columbia.

The environmental impact of the Canadian RFS amounts to the reduction of 4.2 megatonnes in greenhouse gases.

That’s the equivalent of removing more than one million cars from the country’s highways each year.

This RFS is also revitalizing farms and rural communities across the country- from wheat and canola farmers in the west, to corn and soybean farmers in the east. New world-class biofuels facilities will be built- generating more than $1.5-billion in new investment and resulting in 14 000construction and related jobs in rural communities. Once built, this industry will create 10 000 direct and indirect jobs, and generate $600-million in annual economic activity. Put in a global perspective, Canada is now part of a global trasition to biofuels. The way ahead becomes more apparent every day.
There are already six million cars and trucks in North America that can use E85- or up to 85 per cent ethanol. General Motors just announced another major boost for ethanol with a plan to make half of all their new vehicles E85 compatible by 2012; a mere four years away.

Biodiesel is equally promising.

Most manufactures already warrant up to B20- or 20 per cent biodiesel. This winter more than 60 trucks will be put to the ultimate cold weather test by Climate Change Central, an Alberta government public-private not-for-profit organization focusing on GHG reductions and new environmental technologies.

This rapid change away from oil is not without its detractors. But the most common arguments against biofuels fail to withstand close scrutiny. In truth, ehthanol and biodiesel are an environmental and economic win-win. They have a positive energy balance and reduce green house gases.

In Canada, using a variety of Canadian feedstocks, ethanol educes GHGs by 40 to 60 per cent compared to gasoline. Biodiesel GHG emission reductions are 70 to 95 per cent, depending on the feedstock.
those who suggest biofuels inflate food prices are equally hard-pressed to back up their case. In the past three years, the price of food has risen roughly 7 per cent. By contrast , the price of oil has risen 70 per cent.

To the degree to which there are upward pressures on the crop prices, the cause is rising oil prices and new demand from emerging markets like China and India.

Of course, some of the harshest cynics are those with the most at stake. As General Motors Chairman Bob Lutz recently said about powerful industry lobby, “They make it sound like ethanol is taking food out of the mouths of babes. According to them, we’re going to have taco riots in Mexico because of ethanol.” Mr. Lutz’s point is hard to deny. Big oil has little interest in losing market share.

Thankfully, the imperative of growing beyond oil has not been lost on policy makers. The high priced status quo, and the high greenhouse gas emissions, cannot continue. We need real alternatives to reduce our reliance on oil and biofuels are beginning to deliver results. Biofuels are helpin us grow beyond oil. They take stress off of our over- burdened refining systems and provide a hedge against higher gas prices. They help the environment and they are revitalizing farms. And that’s just for starters. Next generation biofuels are just coming on the market.