June 8, 2007

Biofuels Opportunities for Producers Initiative funds four 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 biofuel production facilities by agricultural producers.

The Biofuels Opportunities for Producers Initiative (BOPI), 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 per cent of the project cost must be provided by the industry, of which one third must come from producers.

BOPI funding totalling $975,000 is being provided through the Agriculture and Food Council to four central Alberta biofuels projects, including:

• $300,000 for Ceapro Inc. of Edmonton to complete a business case and feasibility study for the construction and operation of a modular ethanol plant;
• $300,000 to Harvest-Tech Bioproducts Ltd. of St. Albert to conduct engineering studies for a plant that will use straw and other carbon-based materials to make a synthetic gas;
• $300,000 to the Providence Grain Group Inc. of Fort Saskatchewan for a sensitivity analysis and business plan for the construction, operation and marketing of a biofuel business and its products; and,
• $75,000 to the Sustainable Energy Holdings Inc. of Westlock to determine the feasibility of integrating technologies to produce biofuels in the Westlock area.

Opportunities for greater involvement in biofuel production facilities allow agricultural producers to participate in this emerging industry and increase their share of the benefits from renewable fuels production beyond delivering feedstock.