I continue to work with my fellow Conservative MPs on energy issues. This is an immense subject area—one that covers more than just gasoline prices and home heating costs, two issues that have been prominent in the news lately. Last week, I had the opportunity to learn a bit more about ethanol and biodiesel, two fuels which have particular relevance to Saskatchewan.

Ethanol has been talked up a lot in the past but, has not always quite delivered everything that had been promised. Ethanol is more economical now, for the following reasons:

First, the price of oil is over $60 U.S. per barrel and not the $20 that it had been only a few years ago. Since ethanol is competitive at $40 per barrel (roughly), it is now a more economical fuel.

Secondly, the United States’ new energy bill mandates more ethanol in American gasoline. This will drive up demand and create a spill over effect in Canada, feeding demand for ethanol here as well.

Third: provincial governments in Canada, most recently in Ontario, have mandated more ethanol, thus increasing local demand. (Most new vehicles run most efficiently with a 10% ethanol blend.)

These three factors combined with the location of the prairies as a low cost producer of ethanol– should provide some much needed development in our province. A successful ethanol industry may well provide better returns for farmers and a new source of employment in rural Saskatchewan. In addition, biodiesel production will provide a new market for growers of canola and other oilseeds.

Ethanol and biodiesel could be one component of a successful energy policy for Canada—and it’s another area where Saskatchewan can shine if we’re prepared to take advantage of the factors which make so-called “green fuels” more economical.

I’m Brad Trost your Member of Parliament. I welcome your feedback. Contact my offices anytime.