Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

June 08, 2007 13:05 ET

Canada's New Government Fuels Renewable Energy Production in Manitoba

WINNIPEG, MANITOBA--(Marketwire - June 8, 2007) - The Honourable Vic Toews, President of the Treasury Board and Member of Parliament for Provencher, 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 more than $209,000 in three projects in Manitoba that will help develop the emerging biofuels industry.

"Canada's New Government believes in the biofuel industry and its positive impact on our environment, in our communities and the opportunities it provides to our farmers," said Mr. Toews. "It's especially fitting, during this celebration of Environment Week, that we are working together through these leading-edge projects to advance the biofuels industry in Manitoba."

Through the Biofuels Opportunities for Producers Initiative (BOPI), the three participants will conduct feasibility studies and create business plans for the potential development of an ethanol plant in Killarney and biodiesel facilities in Russell and Beausejour.

"It's encouraging that the federal government is providing support to help these companies explore the vast potential for biofuel production," said Terry Hayward, Executive Director of the Manitoba Rural Adaptation Council, which administers the BOPI program in Manitoba. "These projects demonstrate how committed we are to both our environment and our agricultural sector."

BOPI is a two-year $20 million commitment by Canada's New Government designed to provide farmers and rural communities with opportunities to participate in, and benefit from, increased Canadian biofuel production. The initiative 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 industry councils in each province and territory that administer Agriculture and Agri-Food Canada's Advancing Canadian Agriculture and Agri-Food Program.

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 bio-economy through biofuels and bio-products initiatives.

See attached Backgrounder for additional information.

BACKGROUNDER

Biofuels Opportunities for Producers Initiative funds three Manitoba projects

The Government of Canada is committed to establishing regulations that will require 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 agricultural sector, including ownership of biofuel production facilities by agricultural producers.

The Biofuels Opportunities for Producers Initiative (BOPI), delivered through the industry councils in each province/territory 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 per cent of the project cost must be provided by the industry, of which one third must come from producers.

BOPI funding totalling $209,250 is being provided through the Manitoba Rural Adaptation Council to three Manitoba biofuels projects, including:

- $112,500 for Turtle Mountain Sustainable Ventures Corporation of Killarney to develop a feasibility study and business plan for the development of an ethanol plant capable of producing 100 million litres of ethanol a year;

- $55,500 for the Asessippi Parkland Economic Development Corporation of Russell to complete the pre-commercialization development and a business plan to build a 50 million-plus biodiesel facility in the Rural Municipality of Russell;

- $41,250 to Eastman Biofuels of Beausejour to develop a feasibility study and business plan for a four million litre biodiesel plant in Beausejour.

Opportunities for greater involvement in biofuel production facilities allow agricultural producers to participate in this emerging industry and increase their share of the benefits from renewable fuels production beyond delivering feedstock.

For more information on BOPI, please visit www.agr.gc.ca/bopi.

For more information on the Manitoba Rural Adaptation Council, please visit www.mrac.ca or call 204-982-4790.

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    613-759-7972
    1-866-345-7972
    or
    Manitoba Rural Adaptation Council
    Terry Hayward
    Executive Director
    204-982-4791
    or
    Minister Strahl's Office
    Ted Yeomans
    Press Secretary
    613-759-1059