“The grand total of the annual positive economic impact of renewable fuels is $2.013 billion.” This according to a new biofuels economic report, “Total Economic Impact Assessment of Biofuels Plants in Canada,” released today. The report was commissioned by the Canadian Renewable Fuels Association (CRFA) and conducted by econometric firm Doyletech Corporation. The report studied 28 ethanol and biodiesel plants across Canada and added that there were major benefits from renewable fuels in “rural revitalization, increased oil exports from western Canada, industrial development, and valuable options for re-balancing fuel ‘mix’.”
“This is the first report of its kind to study the economic impact of Canadian renewable fuel plants, and the results are undisputable, ethanol and biodiesel in Canada are driving growth,” added Gordon Quaiattini, President of the CRFA. “It’s overwhelmingly clear that Canada’s new renewable fuel standard is delivering on its promise of jobs, investment and growth.”
Here are a few highlights of the report.
The economic impact of operating the 28 Canadian renewable fuels plants was assessed to include:
- A total direct investment of $2.326 billion.
- The total net economic activity of $2.949 billion, including $100.2 million to municipal governments, $492.1 million to provincial governments, and $679.9 million to the federal government.
- And the creation of 14,177 direct and indirect jobs during the respective construction periods.
The economic impact of operating the 28 Canadian renewable fuels plants was assessed to include:
- The production of a total of 2.25 billion litres of renewable fuels annually.
- A net annual economic benefit of $1.473 billion to the Canadian economy across Canada, including $14.1 million to municipal governments, $108.8 million to provincial governments, and $111.8 million to the federal government.
- The creation of a net 1,038 direct and indirect jobs annually.
- An estimated annual benefit of $540 million in additional oil exports that are possible because of western Canada biofuels production (using value of CDN $80/barrel).
“Even making allowance for the opportunity costs of alternate investments, and the opportunity costs of alternate feedstock sales, renewable fuels plants in Canada represent a positive net economic benefit,” the report concludes.
Click here to download the report.