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News Release

Federal Government invests in the Alberta biodiesel industry
Backgrounder

Western Biodiesel Inc. is an Alberta company incorporated for the sole purpose of producing and wholesale marketing of biodiesel fuel. The company will produce a high quality biodiesel fuel using multiple feedstocks like fresh canola oil, recycled vegetable oil and animal fat.

The ecoABC initiative is a $200 million, four-year program that provides repayable contributions for the construction or expansion of transportation biofuel production facilities. Funding is conditional upon agricultural producer investment in the biofuel projects and the use of agricultural feedstock to produce the biofuel. The initiative is part of more than $500 million announced by the federal government to assist farmers and rural communities seize new market opportunities in the agricultural bioproducts sector through biofuels and bioproducts initiatives.

The ecoABC initiative is delivered nationally by Agriculture and Agri-Food Canada. It is designed to provide an opportunity for agricultural producers to diversify their economic base and participate in the biofuel industry through equity investment/ownership in biofuel production facilities.

The Government of Canada is investing a total of $2.2 billion toward the goal of reaching an average of 5 per cent renewable content in gasoline by 2010 and 2 per cent renewable content in diesel fuel and heating oil by 2012.

For more information on the ecoABC initiative, please visit www.agr.gc.ca/ecoabc. For more information on the Government of Canada's ecoAction plan, please visit www.ecoaction.gc.ca.