(CN issued the following press release on April 30.)
MONTREAL — CN announced today its alternative fuels strategy focused on generating new business from the transportation of ethanol and ethanol feedstock, wood pellets, and biodiesel fuel.
James Foote, CN’s executive vice-president, Sales and Marketing, said: “Industries and consumers throughout North America and overseas are increasingly looking to alternative fuels to reduce energy costs, fuel-related emissions and greenhouse gases.”
Foote said CN’s geographic franchise in Canada and the United States is particularly well positioned to take advantage of growing markets for:
Ethanol
CN’s rail network has extensive access to the U.S. Midwest Corn Belt, source of much of the ethanol produced in the United States. From the Midwest, CN also offers corn farmers direct access to ethanol producers in Ontario, while in Western Canada CN is positioned to transport wheat for use as feedstock for ethanol production.
More than 30 per cent of gasoline in the U.S. is blended with ethanol, with the blended product used in 28 states. In Eastern Canada, the Ontario government on Jan. 1, 2007, mandated a five per cent blend of ethanol with gasoline.
Wood Pellets
Major power plants in North America, Europe and Asia are turning to wood pellets as an alternative to fuel oil, gas or electricity to heat homes. CN’s North American network and direct access to export terminals on the Pacific, Atlantic and Gulf coasts position the company perfectly to serve growing markets for wood pellets, which do not contribute to global warming because they
emit the lowest greenhouse gases of any fuel burned. In addition, because wood pellets are made from scrap wood, they are a natural fuel that is completely recycled.
Biodiesel
Biodiesel is a clean burning fuel produced from renewable resources such as vegetable oil, animal fats or waste greases, and in its pure form is commonly blended with petroleum diesel or heating oil, resulting in an alternative fuel that is biodegradable, non-toxic and essentially free of sulphur and aromatics. CN serves two biodiesel facilities in Iowa and will serve further facilities that are planned for development in the U.S. Midwest.