Biofuels Opportunities for Producers Initiative funds three southern 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 biofuels production facilities by agricultural producers.

On July 17, 2006, Minister Strahl announced $10 million in funding for BOPI to be delivered through the industry councils in each province and territory that administer the Advancing Canadian Agriculture and Agri-Food (ACAAF) Program.

Due to the high demand from producers and industry, on March 3, 2007, Minister Strahl announced an additional $10 million of BOPI funding. An additional $3 million was made available last fiscal year to fund additional projects and $7 million is being provided this fiscal year (2007-2008) for new BOPI project proposals, bringing the total up to $20 million over the two fiscal years.

The Biofuels Opportunities for Producers Initiative (BOPI), delivered through the industry councils in each province/territory that administer AAFC's 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 $416,138 is being provided through the Agriculture and Food Council (AFC) to three Alberta biofuels projects, including:

• $277,500 to Kyoto Fuels Corporation of Lethbridge to create a comprehensive business plan, identify the best crushing technology, evaluate seed alternatives, undertake investor consultations and develop an environmental sustainability plan;
  
  
• $93,638 to Gartley Farm Industries Inc. of Drumheller to do a feasibility study to determine the best location for a biodiesel refinery and the best feedstock to use for the operation; and,
  <2007-09-04ration of Coalhurst to carry out consultations, with the goal of developing the concept into a profitable, competitive and functioning agri-business.

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

For more information on BOPI, please visit www.agr.gc.ca/bopi.

For more information on the Agriculture and Food Council, please visit www.agfoodcouncil.com or call 1-866-955-3714 ext. 226.