Agriculture and Agri-Food Canada

Agriculture and Agri-Food Canada

March 28, 2008 15:15 ET

Government of Canada Gives $3.9 Million Boost to Biofuels in Ontario

AYLMER, ONTARIO--(Marketwire - March 28, 2008) - The Government of Canada is working hard to provide all Canadians with technological advances that protect our environment and boost our economy. Mr. Joe Preston, Member of Parliament for Elgin-Middlesex-London, on behalf of the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced nearly $4 million in funding under the federal ecoAgriculture Biofuels Capital (ecoABC) initiative for IGPC Ethanol Inc., a subsidiary of the Integrated Grain Processors Co-operative, in Aylmer, Ontario.

"The Government of Canada is committed to biofuels production," said Mr. Preston. "Biofuels not only offer new markets for farmers, but new jobs for our cities and towns, and a new source of cleaner renewable energy."

The 150 million litre ethanol plant, expected to be completed this November, has also received equity investment from farmers totalling close to $15.5 million. In addition to ethanol, the plant will produce distillers dried grains with solubles and distillers wet grains, sources of protein for dairy and beef cows, hogs and poultry, and carbon dioxide for use in carbonated beverages, freezing foods and making chemicals. This is the third ethanol plant funded under the ecoABC initiative and its opening is expected to create 35 new jobs in the region.

"We are very grateful for the federal government's support for our project," said IGPC chairman, Tom Cox. "And we are excited about possible spin-off benefits for the entire agricultural sector."

The ecoABC initiative was launched by the Government of Canada in April 2007. The initiative is part of the comprehensive Government of Canada renewable fuels strategy that focuses on increasing the demand for renewable fuels through regulation, expanding production capacity in Canada by offering an operating incentive, assisting farmers to participate in this sector of the economy and accelerating the commercialization of new technologies.

More information on AAFC's ecoABC program is available online at


IGPC Ethanol Inc. is a wholly-owned subsidiary of Integrated Grain Processors Co-operative, an Ontario farmer and community-owned co-operative. The Co-operative is committed to the reduction of greenhouse gas emissions through the production of renewable fuels.

The ecoABC initiative is a $200 million, four-year program that provides conditionally repayable contributions for the construction or expansion of transportation biofuel production facilities. Funding is conditional upon agricultural producer investment in the biofuel projects and the use of agricultural feedstock to produce the biofuel. The initiative is part of more than $500 million announced by the federal government to assist farmers and rural communities seize new market opportunities in the agricultural bioproducts sector through biofuels and bioproducts initiatives.

The ecoABC initiative is delivered nationally by Agriculture and Agri-Food Canada. It is designed to provide an opportunity for agricultural producers to diversify their economic base and participate in the biofuel industry through equity investment/ownership in biofuel production facilities.

The Government of Canada is investing a total of $2.2 billion toward the goal of reaching an average of 5 per cent renewable content in gasoline by 2010 and 2 per cent renewable content in diesel fuel and heating oil by 2012, and advancing next generation biofuel technologies.

For more information on the ecoABC initiative, please visit For more information on the Government of Canada's ecoAction plan, please visit

Contact Information

  • Agriculture and Agri-Food Canada
    Ottawa, Ontario
    Media Relations
    The Office of the Honourable Gerry Ritz
    Margaux Stastny
    Press Secretary