Agriculture and Agri-Food Canada
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June 25, 2007 13:36 ET
Canada's New Government Invests Over $416,000 in Alberta's Emerging Biofuels Industry
LETHBRIDGE, ALBERTA--(Marketwire - June 25, 2007) - Rick Casson, Member of Parliament for Lethbridge, 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 $416,000 in three southern Alberta projects to help the emerging biofuels industry.
"Canada's New Government is helping to ensure that producers are able to participate in and benefit from increased biofuels production in Canada," Mr. Casson said. "The renewable energy industry holds great potential for enhancing the economic prosperity of the communities of Lethbridge, Drumheller and Coalhurst."
Through the Biofuels Opportunities for Producers Initiative (BOPI), the three firms will receive funding to prepare feasibility studies and business plans to study the suitability of biofuels production according to location and needs in the industry.
"It's encouraging to see the federal government provide support to help these companies explore the vast potential for biofuel production and use," said Dee Ann Benard of the Agriculture and Food Council, which administers the BOPI program in Alberta. "These projects demonstrate how committed the Council is to our environment and to 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 biofuels production. The initiative helps agricultural producers and others 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 southern Alberta 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 biofuels production facilities by agricultural producers.
On July 17, 2006, Minister Strahl announced $10 million in funding for BOPI to be delivered through the industry councils in each province and territory that administer the Advancing Canadian Agriculture and Agri-Food (ACAAF) Program.
Due to the high demand from producers and industry, on March 3, 2007, Minister Strahl announced an additional $10 million of BOPI funding. An additional $3 million was made available last fiscal year to fund additional projects and $7 million is being provided this fiscal year (2007-2008) for new BOPI project proposals, bringing the total up to $20 million over the two fiscal years.
The Biofuels Opportunities for Producers Initiative (BOPI), delivered through the industry councils in each province/territory that administer AAFC's 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.
BOPI funding totalling $416,138 is being provided through the Agriculture and Food Council (AFC) to three Alberta biofuels projects, including:
- $277,500 to Kyoto Fuels Corporation of Lethbridge to create a comprehensive business plan, identify the best crushing technology, evaluate seed alternatives, undertake investor consultations and develop an environmental sustainability plan;
- $93,638 to Gartley Farm Industries Inc. of Drumheller to do a feasibility study to determine the best location for a biodiesel refinery and the best feedstock to use for the operation; and,
- $45,000 to Refuel Bioproducts Corporation of Coalhurst to carry out consultations, with the goal of developing the concept into a profitable, competitive and functioning agri-business.
Opportunities for greater involvement in biofuels production facilities allow agricultural producers to participate in this emerging industry and increases 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 Agriculture and Food Council, please visit www.agfoodcouncil.com or call 1-866-955-3714 ext. 226.