Ethanol production in Canada is expected to rise from 650 million litres in 2007 to more than 3 billion by 2010, according to the Canadian Renewable Fuels Association. Every day, Canada imports about 82 million litres of light crude oil for transportation fuel making up a total of several billion dollars which flows out of the country each year, and fewer jobs are available for Canadians. For example, Manitoba government loses approximately $430 million annually in income transfers for gasoline produced in other areas. If ethanol were used in 50 per cent of Canadian gasoline, it is estimated that 3,000-6,000 jobs would be created in the next 15 years.

   Ethanol production increases grain and corn prices and opens up new local markets for agricultural producers. Farmers also save transportation costs as more than 70 per cent of revenue from an ethanol plant is spent within a 150-kilometre radius of the plant site. It provides exists to a wide range of other biological materials such as forestry and municipal wastes, a problem facing every Canadian province. The by product of ethanol production from grain can be used as high-protein livestock feeds, which could help Canada save up to $200 million annually in imports of high-protein feeds. Revenue generated from renewable ethanol produced by sustainable agricultural practices can stabilize farm income, reducing overall government subsidy to agriculture.