Ethanol

Ethanol is a renewable, alcohol-based fuel made primarily from the fermentation of plant materials like corn, sugarcane, or other biomass feedstocks. It is commonly blended with gasoline to reduce emissions and enhance fuel efficiency. Ethanol is widely used as a cleaner alternative to fossil fuels in transportation.

Today, Canada has a well-established ethanol industry, with production facilities across the country producing approximately 1.7 billion liters of ethanol annually (as of 2023). The industry continues to evolve, driven by technological advancements, government policies, and growing demand for renewable energy sources.

How is ethanol made?

Ethanol is primarily produced through the fermentation of sugars. The process involves the following steps:

  • Dehydration: To increase ethanol concentration, the ethanol is dehydrated through a molecular sieve or other methods.
  • Feedstock Preparation: Starch or sugar-rich crops, such as corn or sugarcane, are processed to extract sugars.
  • Fermentation: Yeast is added to the extracted sugars, converting them into ethanol and carbon dioxide.
  • Distillation: The ethanol is separated from the fermentation mixture through distillation.

The road ahead for ethanol

The government of Canada currently requires that gasoline at the pump contains an average of five per cent ethanol. Some provinces require a higher percentage.

As the industry raises ethanol blend levels to meet Canada’s future emission targets, demand for ethanol in Canada is expected to rise by about 50% from 2022 levels, reaching around 5 billion liters per year by 2030. Canadian Fuels Association (CFA) members are leading the way in ethanol production in Canada today. Their investments in facilities and infrastructure create jobs and help local economies grow.  

With the right policies in place, our members can continue to grow their production of this important biofuel to support Canada’s climate goals and promote a more sustainable energy future. This will not only help the environment but could also position Canada as a leader in renewable energy, paving the way for a cleaner and stronger economy. 

Some Facts on E15 Ethanol

  • CFA members may start introducing higher ethanol content gasoline (higher than 10% ethanol) at some retail locations to support and meet evolving federal and provincial regulations related to renewable fuels. These changes will further contribute to decarbonizing transportation fuels in line with CFA’s Driving to 2050 vision.
  • Provincial biofuel policies are one of the main drivers for the introduction of E15 fuel at retail gas stations. This said, even with the introduction of E15 into the Canadian market, E10 and other products will remain available.
  • Fuel quality requirements for E15 are governed by the Canadian General Standards Board and as such, gasoline offered by CFA members will continue to meet regulatory requirements and Canadian gasoline quality standards.
  • In the U.S., E15 is already available at retail gas stations and the U.S. Environmental Protection Agency has approved the use of E15 in post-2001 vehicles.  
  • Always refer to your vehicle manufacturer handbook or manual to confirm the optimum fuel choice for your vehicle.   E15 should not be used in small engine applications (e.g. motorcycles, boats, lawnmowers) unless the owner’s manual states otherwise.

Contacting your local fuel retail station or the customer services of the retail station brand is the most efficient way to understand the fuel options they provide.