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Canada: Biofuel Makers Critical of Government Study

Shawn McCarthy of Globe and Mail Update reports that Canadian biofuel makers have fired back after a critical Environment Canada analysis suggested the cost of government support for the ethanol and biodiesel industries far exceeds the environmental benefits.

The Canadian Renewable Fuels Association (CRFA) released a report Wednesday that calculates the industry is providing $2 billion of economic impacts, over and above the costs that taxpayers and motorists will incur to support it.

According to the report, over the next 30 years, the economic benefit from 28 biofuel plants either built or in the planning stages would be $24 billion.

The report concludes:

The major benefits of renewable fuels plants are not merely the provision of transport fuels, but also they provide vehicles for rural revitalization, increased oil exports from Western Canada, industrial development, and valuable options for rebalancing fuel mix.

More on the dispute between biofuel makers and the government report.

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