Ottawa, Ontario – Ethanol and biodiesel add $2 billion to the Canadian economy each year, according to a new report by the Canadian Renewable Fuels Association.
The assessment, which studied 28 ethanol and biodiesel plants across Canada and was conducted by econometric firm Doyletech Corporation, concluded that the annual positive economic impact of renewable fuels is $2.013 billion.
The economic impact included a total direct investment of $2.326 billion, total net economic activity of $2.949 billion and 14,177 direct and indirect jobs during the construction phase of the plants. During operation, the 28 plants produced 2.25 billion litres of renewable fuels annually, resulting in a net annual economic benefit of $1.473 billion, the creation of a net 1,038 direct and indirect jobs annually, and an estimated annual benefit of $540 million in additional oil exports due to biofuels production in Western Canada.
The report concluded that even making allowance for the opportunity costs of alternate investments and feedstock sales, renewable fuel plants in Canada represent a positive net economic benefit.