Additional $10 million for Biofuels Opportunities for Producers Initiative

March 3, 2007

The Government of Canada is committed to requiring five per cent average renewable fuel content in transportation fuels by 2010 and intends to regulate a two per cent requirement for renewable content in diesel fuel and heating oil by 2012. Environment Canada is leading the development of the strategy to reach this goal, with support from Natural Resources Canada and Agriculture and Agri-Food Canada (AAFC).

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.

On July 17, 2006, Minister Strahl announced $10 million in funding for 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. The councils undertook this expanded role as it is consistent with their mandate to position the sector at the leading edge to seize new opportunities.

Due to the high demand of producers and industry, up to $3 million of the additional BOPI funding will be made available immediately under ACAAF to fund approved projects. Another $7 million will be provided in 2007-2008 fiscal year for round two of BOPI funding.

Funding is provided for agricultural producers in the following key areas:

1. hiring technical, financial, and business planning advisors to assist in developing sound business proposals to support the creation and expansion of biofuels production capacity with significant ownership by agricultural producers;
2. undertaking feasibility and other studies required to support business proposals;
3. investigating the pre-commercialization of biofuels related research; and
4. gathering information to help identify opportunities and provide necessary input to generate industry involvement in biofuels capacity building.

Individual project funding will be capped at $300,000 and at least 25 per cent of the project cost must be provided by the industry.

Opportunities for greater involvement in biofuels production facilities will 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, the ACAAF program and the councils, please visit the web site at www.agr.gc.ca/bopi/.