Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 30, 2007 16:03 ET

AAFC: Canada's New Government Invests $900,000 for Biofuels Initiatives In Alberta

LEDUC, ALBERTA--(CCNMatthews - March 30, 2007) - James Rajotte, Member of Parliament for Edmonton-Leduc, on behalf of the Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that Canada's New Government is investing $900,000 in three Alberta companies to bring them closer to biofuel production.

"Investing in these projects will help to ensure that farmers and rural communities have a chance to participate in and benefit from increased biofuels production in Canada," said James Rajotte. "Increasing the use of biofuels is good news for this emerging industry, and the agricultural sector as a whole, and will also mean a reduction in greenhouse gases and smog."

Projects being funded by the Biofuels Opportunities for Producers Initiative (BOPI) include:

- $300,000 for a feasibility study of construction of a biodiesel plant in Sturgeon County by Canadian BioEnergy Corporation;

- $300,000 for preliminary analysis of the construction of a biodiesel crusher and refinery in central Alberta by BioStreet Canada Inc.; and

- $300,000 for production analysis of a biofuel complex in Strathmore by CR Fuels Inc.

"The Agriculture and Food Council is pleased to be able to provide Albertans with funding to explore opportunities in biofuel production," said Paul Thiel, Chair of the Alberta Advancing Canadian Agriculture and Agri-Food (ACAAF) Program. "We were impressed with the significant number and calibre of proposals submitted."

BOPI is a $20 million commitment by Canada's New Government that is designed to provide farmers and rural communities with opportunities to participate in, and benefit from, increased Canadian biofuels production. The program helps agricultural producers develop sound business proposals, as well as undertake feasibility or other studies to support the creation and expansion of biofuel production capacity. It is delivered through the regional industry councils that administer Agriculture and Agri-Food Canada's ACAAF Program. In Alberta, the funding for these projects is administered by the Agriculture and Food Council.

In Budget 2007, Canada's New Government allocated $2 billion over seven years to support the production of renewable fuels. In addition, since coming to office this government has announced $500 million to assist farmers and rural communities to seize new market opportunities in the agricultural bio-products sector through biofuels and bio-products initiatives.

BACKGROUNDER

Biofuels Opportunities for Producers Initiative Funds Three Alberta Projects

The Government of Canada is committed to requiring 5 percent average renewable fuel content in transportation fuels by 2010 and intends to regulate a 2 percent requirement for renewable content in diesel fuel and heating oil by 2012. Agriculture and Agri-Food Canada (AAFC) wants to ensure that these targets are implemented in ways that result in the greatest possible benefit to the agriculture sector, including ownership of biofuels production facilities by agricultural producers.

The Biofuels Opportunities for Producers Initiative (BOPI), which is delivered through the regional industry councils that administer AAFC's Advancing Canadian Agriculture and Agri-Food (ACAAF) Program, was developed to help meet this goal. Individual project funding is capped at $300,000 and at least 25 percent of the project cost must be provided by the industry, of which one third must come from producers.

Three innovative projects in Alberta have received BOPI funding through the Agriculture and Food Council:

- Canadian Bioenergy Corporation will receive $300,000 in BOPI funding to complete a feasibility study for a biodiesel plant in Sturgeon County, Alberta. They intend to construct, own and operate the biodiesel production plant capable of 114 million litres per year, by 2008. If markets for the biodiesel, glycerine, and by-products support industry growth, the company intends to investigate additional plant locations.

- BioStreet Canada Inc. will use the $300,000 received through the BOPI program to further its plans to build a 175 million litre per year biodiesel crusher and refinery in central Alberta. The "From Field to Refinery Business Planning" project was born in recognition of the growing biofuels demand in Canada and around the world.

- CR Fuels Inc. has been approved for $300,000 of BOPI funding that will be used for a production analysis to build a biofuel complex in Strathmore, Alberta. Their main objective is to design a biofuels complex that incorporates three technologies: ethanol production, biodiesel fuels, and biogas. This facility will maximize the efficiency of each process.

Opportunities for greater involvement in biofuels production facilities allow agricultural producers to become participants in the value chain and increase their share of the benefits from renewable fuels production beyond delivering feedstock.

For more information on BOPI and the ACAAF program, please visit www.agr.gc.ca/bopi. For more information on the Agriculture and Food Council of Alberta, please visit www.agfoodcouncil.com.

Contact Information

  • Agriculture and Agri-Food Canada
    Media Relations
    613-759-7972
    1-866-345-7972
    or
    Minister Strahl's Office
    Conrad Bellehumeur
    Director of Communications
    613-759-1059
    or
    Alberta ACAAF and BOPI
    Agriculture and Food Council
    Tom Switzer
    Executive Director
    780-955-3714 ext. 226
    1-866-955-3714 ext. 226