April 13, 2007

Biofuels Opportunities for Producers Initiative Funds Four Manitoba Projects

The Government of Canada is committed to requiring 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 agriculture sector, including ownership of biofuels production facilities by agricultural producers.

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, 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 $575,000 is being provided through the Manitoba Rural Adaptation Council to four southern Manitoba biofuels projects including:

• $264,000 to Heartland Biodiesel to explore establishing a biodiesel plant in south central Manitoba using locally-produced vegetable oil;
  
  
• $224,750 to Borderland Biodiesel to develop a business plan for a biodiesel plant in southwestern Manitoba;
  
  
• $56,250 to Ash Haven Farms Ltd. to develop a study and business plan for an oilseed crushing plant in Cyprus River; and
  
  
• $30,000 to Clean Country Resources Ltd. to develop a business plan for an ethanol plant in southwestern Manitoba.

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

For more information on the Manitoba Rural Adaptation Council, please visit www.mrac.ca.