June 8, 2007

Biofuels Opportunities for Producers Initiative funds nine Saskatchewan 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 $1,658,537.50 is being provided through the Saskatchewan Council for Community Development to nine Saskatchewan biofuels projects, including:

• $300,000 for the Prairie Ethanol Consortium Inc. of Meadow Lake to develop a core business plan to serve five related projects;
• $300,000 to Quill Plains Biofuel Co-operative Ltd. of Watson to develop a business plan to build an ethanol production facility near Watson;
• $280,000 to Tisdale Alfalfa Dehy Ltd. of Tisdale to hire technical and business advisers to develop a business plan;
• $262,500 to Gardiner Dam Terminal Ltd., of Loreburn to create a locally owned ethanol production facility that increases the profitability of primary producers by maximizing local ownership;
• $167,250 to South Parkland REDA of Melville to conduct a pre-engineering and environmental assessment of a proposed ethanol facility;
• $155,662.50 to the Nipawin Biomass Ethanol New Generation Co-operative Ltd. of Nipawin to develop environmental and market assessments and a business plan;
• $101,250 to Cypress Agri-Energy Inc. of Shaunavon to update its business plan and carry out project development a2007-09-04aunavon;
• $73,125 to Central Sask Biofuels Ltd. of Davidson to study the feasibility of building a biodiesel production facility near Davidson;
• $18,750 to Peacock Industries of Hague to develop a business plan for the manufacturing and marketing of biodiesel fuel and additive products for a niche market.

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.