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Western Canadian wheat growers anticipate ethanol will energize their wheat market in the same way it has the U.S. corn market by creating a new use for the dominant grain crop. Using wheat to produce ethanol, however, has its challenges. (http://www.biofuelsmagazine.ca/article.jsp?article_id=84&article_title=Move%20Over%20Corn,%20Wheat%e2%80%99s%20Kingin%20Western%20Canada)

http://www.cleanmpg.com/photos/data/500/wheat_farmer.jpgSusanne Retka Schill - Biofuels Canada - May 2008

For more than 25 years, ethanol has been produced in a small way on the Canadian prairies. This year, two new plants coming on line will boost total ethanol capacity. In 2006, when Husky Energy Inc. brought its 130 MMly ethanol plant at Lloydminster, Saskatchewan, on line, it more than doubled western Canada’s ethanol output, which was 79 MMly.

Ethanol capacity will more than double again this year with Husky’s second 130 MMly plant commissioned in December at Minnedosa, Manitoba, and Terra Grain Fuels Inc.’s 150 MMly plant at Belle Plaine, Saskatchewan, scheduled to start up this spring.

While eastern Canada relies on corn for ethanol, western Canada’s growing industry is turning to wheat as the primary feedstock. “We really are in the early stages of a large-scale biofuels industry in western Canada so it’s difficult without a crystal ball to predict the full impacts,” says Cherilyn Jolly-Nagel, president of the Western Canadian Wheat Growers Association. But it’s not too soon to foresee the possible benefits of an increase in ethanol capacity. In her presentation at the Canadian Renewable Fuels Association’s fourth annual Canadian Renewable Fuels Summit in December, she listed five reasons wheat growers welcome the ethanol industry growth. ...http://www.biofuelsmagazine.ca/article.jsp?article_id=84&article_title=Move%20Over%20Corn,%20Wheat%e2%80%99s%20Kingin%20Western%20Canada

“We really are in the early stages of a large-scale biofuels industry in western Canada so it’s difficult without a crystal ball to predict the full impacts,” says Cherilyn Jolly-Nagel, president of the Western Canadian Wheat Growers Association.

Too bad Jolly-Nagel has such a myopic, selfish view of the subject.

The full impacts will include hunger, starvation, and higher grocery bills for those fortunate enough to still be able to buy food.

Great!

Harry

You can get a few large energy dependent countries to war over oil. But, as food supplies shrink, I would think a lot of countries might begin to fight for food (China being one. But, then again, I'm not sure the Chinese gov't wouldn't be glad to let some of their people starve in order to control population.)

Greg

Agreed, I think ultimately biofuels could pose a threat to global security when we have food-hungry nations coming into conflict with energy-hungry nations (like, uh, ours).

So the big question in my mind is whether wheat ethanol production is as horribly energy inefficient as corn ethanol production. It does concern me that, as mentioned in the article, yields per acre are far lower than with corn.

On a side note, if you have not seen the documentary King Corn it is worth watching. It focuses more on the use of corn starch in the majority of foods but it does reference ethanol and gives you a good idea of a farmer's multiple incentives to continue growing corn.