Saskatchewan is the first province in Canada to pass a law requiring ethanol in its gasoline. Saskatchewan's ethanol mandate started on November 1, 2005.

Saskatchewan's ethanol legislation is a two-step approach. From November, 2005 to January, 2007 fuel distributors were required to blend 1% ethanol into their gasoline sales. The second step, effective January 15, 2007, increased that blend to 7.5%. The blend percentages are based on averages. Distributors have the flexibility to blend at any ratio under 10% (the current standard) to meet that overall goal. Distributors also have discretion over the locations of their ethanol pumps.

At a blend rate of 7.5%, the province is expected to use at least 105 million litres of ethanol per year.

Distributors are also eligible for a grant of 15 cents for every litre of ethanol produced and sold here in Saskatchewan. That amount equals the provincial gasoline fuel tax.

Saskatchewan's ethanol production capacity is expected to increase from 168 million litres to 318 million litres in 2008. The province will soon have four fully operational ethanol plants. One in Lanigan (Pound-Maker Agventures), NorAmera BioEnergy is operating a plant in Weyburn, Husky Energy's Lloydminster ethanol plant opened in the fall of 2006, and Terra Grain Fuels will open a plant near Belle Plaine in 2008.