No. H257/05
For release November 24, 2005

THREE FREIGHT SUSTAINABILITY
PROJECTS IN BRITISH COLUMBIA
ANNOUNCED TO REDUCE
GREENHOUSE GAS EMISSIONS

VANCOUVER — Three new projects in British Columbia under Transport Canada's Freight Sustainability Demonstration Program were announced today by David L. Emerson Minister of Industry and co-Senior Minister responsible for British Columbia on behalf of Transport Minister Jean-C. Lapierre.

The Government of Canada is investing $520,046 in these projects. The organizations selected to receive funding are Azure Dynamics Inc., BC Ferries and M.A. Turbo / Engine Ltd.

"Projects such as the ones announced today demonstrate the Government of Canada's commitment to supporting environmental sustainability, innovation and development," said Mr. Emerson. "Today's announcement will enable members of the transportation industry in British Columbia to continue to do their part to protect the environment."

The Freight Sustainability Demonstration Program supports the demonstration and evaluation of innovative tools, technologies and practices that have the potential to reduce the growth of greenhouse gas emissions from the freight transportation sector in Canada. The Government of Canada will contribute up to 50 per cent of eligible project expenses, to a maximum of $250,000, with applicants and their partners contributing the remainder. Approximately $4.7 million will be allocated under the program between 2001 and 2007.

"I'm pleased to see that members of the freight transportation industry are coming up with innovative ways to reduce greenhouse gas emissions," said Mr. Lapierre. "The Government of Canada is dedicated to funding industry projects that will ultimately benefit all Canadians by helping the environment."

To date, the government has announced approximately $4.4 million in funding for 31 projects across Canada under the Freight Sustainability Demonstration Program. This program is part of the Freight Efficiency and Technology Initiative that was established under the Government of Canada Action Plan 2000 on Climate Change.

More information on the Freight Sustainability Demonstration Program is available at www.tc.gc.ca/FSDP.

Backgrounders with information on projects and the program are attached.

-30-

Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.

This news release may be made available in alternative formats for persons with visual disabilities.

BACKGROUNDER

PROJECTS FUNDED UNDER THE
SEVENTH ROUND OF THE FREIGHT
SUSTAINABILITY DEMONSTRATION PROGRAM

The following projects in British Columbia have been selected for the seventh round of funding under the Freight Sustainability Demonstration Program:

Parallel hybrid electric delivery vehicles
Project location: Burnaby-New Westminster, British Columbia
Azure Dynamics will receive $200,000 to demonstrate the fuel efficiency improvements possible through the use of parallel diesel-electric hybrid technology in both the urban and rural environments. This technology uses both a diesel engine and electric motor and batteries to supply power to the drive wheels simultaneously. This project involves testing in the lab and in an operational environment. And as such, Azure Dynamics will design and build the trucks, and Purolator Courier will use these trucks as part of their fleet for approximately six months.

Fuel Saving / Emission Reductions System for marine diesel engines
Project location: Vancouver, British Columbia
M.A. Turbo / Engine Ltd.will receive $125,000 to demonstrate the potential reduction of carbon dioxide, nitrogen monoxide and PM emissions through the Fuel Saving / Emission Reductions System. The system maintains the improvements in turbocharger performance realized through cleaner turbocharger components by injecting water into the combustion air. The project will install the system, and the fuel consumption and the condition of the turbocharger components will be monitored to determine the effectiveness of the system.

Operating performance indicators
Project location: Victoria, British Columbia
BC Ferries will receive $125,000 to determine the impact of operational best practices on fuel consumption and engine emissions. The project will identify the best operational parameters for ferry manoeuvres, engine setting and cargo loading through simultaneous measurement of power, position and emissions. This project will enable optimum voyage profiles to reduce total fuel consumption and engine emissions.

November 2005

BACKGROUNDER

FREIGHT SUSTAINABILITY DEMONSTRATION PROGRAM

The Freight Sustainability Demonstration Program supports the demonstration and evaluation of innovative tools, technologies and practices that have the potential to reduce the growth of greenhouse gas emissions in Canada's freight transportation sector.

The program, announced as part of the Government of Canada's Action Plan 2000 on Climate Change, will allocate approximately $4.7 million between 2001 and 2007 for projects that meet the program's criteria. Projects are eligible for a maximum program contribution of $250,000 over two years. Government of Canada contributions will cover up to 50 per cent of eligible project expenses, with applicants and their partners contributing the remainder. Some 31 projects have already been approved for funding.

Transport Canada, together with Natural Resources Canada, selects projects to receive funding under the program, taking into account the recommendations of an advisory committee including representatives of other federal departments, academic institutions and other not-for-profit organizations. Applications are accepted twice a year, in the spring and the fall. For specific dates, please see the Applicant's Guide on the Freight Sustainability Demonstration Program website listed below.

All participants in the Freight Sustainability Demonstration Program are required to monitor greenhouse gas emissions and report findings from their projects to the program secretariat at Transport Canada.

Transport Canada will make information on successful technologies and best practices available at conferences and other venues and on the Freight Sustainability Demonstration Program website at www.tc.gc.ca/FSDP.

The Freight Sustainability Demonstration Program is part of the Freight Efficiency and Technology Initiative which includes a range of different initiatives designed to reduce the growth of greenhouse gas emissions in the freight transportation sector.

November 2005