Economic Reasons for
Using Ethanol
Ethanol blended fuels used in Manitoba are produced with made in Manitoba ethanol.
Producing and consuming ethanol has a number of economic benefits for Manitoba:
Reducing imports of gasoline produced in other provinces.
Stabilization of agricultural income.
Creating alternative markets for agricultural products.
Stimulating sustainable economic development and job creation in rural
areas.
Government Initiatives
The federal government incentives include an exemption of the excise tax
on the ethanol portion in gasohol. This amounts to 1 cent per litre of gasohol sold in
Manitoba.
The Manitoba Government provides a reduction in the gasoline tax of 2.5
cents per litre for gasohol containing a 10 per cent blend of ethanol produced and sold in
Manitoba.
Gasohol (10 per cent ethanol blend)
Ethanol blended gasoline or gasohol is a mixture of gasoline and ethanol. In Manitoba
gasohol contains 10 per cent ethanol and 90 per cent gasoline.
Gasohol can be used in vehicle engines that use gasoline. Since 1988, all vehicles sold
in Canada have been warranted to use gasohol.
Gasohol is considered to have positive environmental effects. Studies show that using
gasohol, instead of regular gasoline, reduces carbon monoxide (CO) emissions by as much as
17 per cent, carbon dioxide (CO2) emissions by 4.2 per cent, and hydrocarbon emissions by
5 per cent. Furthermore using gasohol also reduces emissions of benzene (a known
carcinogen) and 1,3 butadiene.
The downside of gasohol use can be increased emissions of nitrogen oxides (NOx),
volatile organic compounds (VOCs), and aldehydes. The degree to which emissions increase
depends on the vehicle and emission control technology used. The Environmental Choice
Program of Environment Canada grants certain products the right to use the EcoLogo
trademark. This trademark identifies products that help reduce the burden on our
environment. Ethanol blended gasoline has been approved to carry this trademark. Mohawk
Oil, the only producer and distributor of gasohol in Manitoba, displays the EcoLogo on
their gas pumps.
In Manitoba, Mohawk and some Husky stations are currently the only suppliers.
E85 (85 per cent ethanol blend)
E85 is a mixture of 15 per cent gasoline and 85 per cent ethanol.
E85 can be used in vehicle engines that have been modified for the fuel. Some of the
major automobile manufacturers offer some of their vehicle models as "flexible fuel
vehicles" that can detect whether E85, gasohol or gasoline is placed in the tank and
adjust themselves accordingly.
The benefits of using this fuel include reduced greenhouse gas emissions of up to 37.1%
and reduced emissions of some air pollutants (notably particulate matter, carbon monoxide
and nitrogen oxides).
Currently there are no suppliers of E85 in Manitoba. The nearest source would be
service stations in the United States.
Ethanol Blended Diesel Fuel
Ethanol blended diesel fuel is a mixture of ethanol and diesel fuel. The ratio of these
two fuel components varies with the manufacturer. In addition, a co-solvent is added to
allow for the diesel to mix with the ethanol. The fuel E-Diesel that is currently being
used in a pilot project of Husky Energy Ltd., Octel-Starreon/AAE, and Winnipeg Transit
combines 91.5 per cent diesel fuel, 7.5 per cent ethanol, and 1 per cent co-solvent.
Currently ethanol blended diesel fuel is used by a variety of users in the United
States and Europe. Winnipeg is the location of the first pilot demonstration of an
ethanol-blended diesel fuel in Canada. This demonstration was facilitated by Manitoba
Conservation and started in October of 2001. It involves 10 Winnipeg Transit buses that
are used on regular routes. Users in other localities have introduced the fuel into
regular use in both heavy vehicles (e.g. dump trucks) and transport trucks.
The benefits of using this fuel include a 3 per cent reduction in greenhouse gas
emissions and reduced emissions of some air pollutants (notably particulate matter, carbon
monoxide and nitrogen oxides).
At the moment there are no gas stations that sell ethanol blended diesel fuel. In a few
years we may see it marketed to large fleet users such as transit systems and highway
transport trucks.
Manitoba Energy, Science & Technology, Energy Development Initiative ©
2003
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