Canada looks set to require ethanol in gasoline

OTTAWA (Reuters) – Canada looks set to require that
biofuels be included in all gasoline and diesel fuel sold in
the country following nearly identical election campaign
promises made by the two leading political parties.

Both Liberal Prime Minister Paul Martin, on Tuesday, and
Conservative leader Stephen Harper, on Wednesday, said they
would require that renewable fuels, such as ethanol and
biodiesel, make up 5 percent gasoline and diesel fuel.

Harper said he would do it, if elected, by 2010. Martin
pledged to do it by the end of 2010.

Three of Canada’s 10 provinces — Ontario, Saskatchewan and
Manitoba — already require some renewable fuels but there is
not a national standard.

Husky Energy Inc. is one of Canada’s biggest producers of
ethanol, which is made from grain or other plant sources.
Biodiesel is a diesel fuel made from vegetable oils such as
soybean oil or animal fats.

Harper also pledged to add C$500 million a year to farm
support programs. He said he would replace the current farm
income stabilization program with a more streamlined version
and introduce a separate disaster relief program.

Election day is January 23.