May 25, 2007

Biofuels Opportunities for Producers Initiative Funds Five Alberta 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 agricultural sector, including ownership of biofuels production facilities by agricultural producers.

The Biofuels Opportunities for Producers Initiative (BOPI), which is delivered through the industry councils in each province/territory 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 $1,048,510 is being provided through the Agriculture and Food Council (AFC) to five southern Alberta biofuels projects including:

• $300,000 for Sears Ranches Group to do a business plan and feasibility study for a proposed ethanol plant with a capacity of approximately 25 million litres;
  
  
• $294,500 for BTE Biotrend Energy Inc. to assess, develop and demonstrate mobile diesel refining opportunities for western Canadian farms ($30,750 of the total provided by the Manitoba Rural Adaptation Council);
  
  
• $262,500 for the Western Barley Growers Association to evaluate barley's potential in Canada's rapidly evolving biofuels industry;
  
  
• $126,510 for the Ag Energy Corporation for a feasibility study and business plan to build an ethanol plant in the Foothills, Willow Creek and Vulcan County area;
  
  
• $65,000 for the Olds College School of Innovation to determine the overall feasibility of on-farm biodiesel production.

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.