Government legislation that will require all gasoline sold in Canada to contain 5 per cent ethanol by 2010 passed the House of Commons yesterday.

The bill, which also calls for diesel to contain 2 per cent renewable fuels by 2012, won the support of the main opposition Liberal Party. Opposition was voiced by other parties over concern about food-crop production being diverted to fuel.

The governing Conservatives and the Liberals argued that only a small portion of food crops such as corn will be used to make the biofuel.

The legislation must now be approved by the Senate, where passage is likely.

The bill would create demand for an estimated 2 billion litres of ethanol and 600 million litres of biodiesel.

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