The Canadian federal government announced plans today that require the country to use ethanol and biodiesel in the nation's energy supply. Environment Minister Rona Ambrose and Agriculture Minister Chuck Strahl announced a renewable fuels standard that would require 5 percent renewable content in gasoline by 2010 and a 2 percent renewable content in diesel and home heating oil by no later than 2012.
 
 The announcement was made today in Saskatoon, Saskatchewan. The biodiesel requirement appears to make Canada one of the first countries to specifically require a nationwide biodiesel blend.
 
 Strahl also announced CAN$345 million (US$300 million) in two programs—the Agricultural Bioproducts Innovation Program (ABIP) and the Capital Formation Assistance Program for Renewable Fuels Production—aimed at assisting farmers and rural communities seize market opportunities in the agricultural bioproducts sector. "These programs are an important step in achieving the government's objective of 5 percent renewable content in transportation fuels by 2010, while also creating new economic opportunities for our farmers and agricultural sector," Strahl said.

 
 The requirement for 5 percent renewables in gasoline is expected to require approximately 2.1 billion liters (555 million gallons) of ethanol by 2010. The 2 percent diesel and home heating oil requirement will require an additional 600 million liters (156 million gallons) of renewable fuel by 2012. "Requiring the use of renewable fuels fulfills a commitment by our government," Ambrose said. "Through these regulations, we are keeping with our approach toward meaningful action, and we will ensure that our objectives are met."
 
 Renewable fuels groups and other stakeholders welcomed the announcement. "(The announcement) sets solid targets and gives farmers a chance to benefit from the growing renewable fuels industry year after year," said Robin Speer, director of public affairs for the Canadian Renewable Fuels Association. "This is a good day for farmers and a good day for the environment."
 
 The Canola Council of Canada, which is working with the Canadian petroleum industry to ensure biodiesel meets performance standards in the country, said the announcement was a critical step toward the development of a made-in-Canada biodiesel industry. "The 2 percent standard and access to funds for farmers to invest in biodiesel production are key steps in getting this industry off the ground," said Barb Isman, president of the Canola Council of Canada. "But without government investments that put Canada on par with the U.S. there is no biodiesel industry in Canada. We need to ensure this piece of the puzzle is in place as soon as possible or the opportunity for Canadian farmers and the economy will be lost."
 
 Isman said she expects Canadian biodiesel producers and distributors could build the necessary infrastructure to meet the 2 percent requirement by 2010. "Our longer term goal is to achieve a minimum of 5 percent biodiesel in the fuel supply by 2015," she said.
 
 Several speakers at the <a target="_blank" href="http://www.canadianrenewablefuelssummit.com">Canadian Renewable Fuels Summit</a> held in Banff, Alberta, earlier this month said they supported a 10 percent renewable fuels goal in Canada. Supporters included Saskatchewan Premier Lorne Calvert and Saskatchewan Ethanol Development Council President Lionel LaBelle.
 
 A press release broke down the CAN$345 million (US$300 million) funds. Of the CAN$345 million, CAN$200 million (US$174 million) will be used through the Capital Formation Assistance Program for Renewable Fuels Production to provide producers with incentives for participation in new renewable fuels production capacity.
 
 The four-year program will provide repayable capital funding arrangements to renewable fuels projects based on agricultural producers' contributions to biofuels facilties. The individual arrangements will be based on the level of producers' contributions to eligible project costs and be capped at of CAN$25 million (US$22 million) per project.

 
 The remaining CAN$145 million (US$126 million) will go through the ABIP to provide support for cross-sector research networks conducing scientific research and development related to the advancement of a Canadian biobased economy.
 
 ABIP is a five-year program, and each bioproduct research network may receive a total of up to CAN$25 million (US$22 million). Eligible network participants include universities, the private sector, federal government departments and agencies, and other public sector research organizations.
 
 The release also stated that the regulations are expected to take two year to develop. "Design and implementation of a regulation will require consultation with provinces, territories, affected sectors and other stakeholders," the release said.
 
 Canada currently has eight operational ethanol plants with capacity for 615 MMly (162 MMgy). Two more plants are under construction that would add an additional 250 MMly (66 MMgy).
 
 Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at <a href=mailto:"dnilles@bbibiofuels.com">dnilles@bbibiofuels.com</a> or (701) 373-0636.
 
 Posted: 12:36 p.m. CST Wednesday, December 20, 2006

Canadian government unveils renewable fuel requirement plans

Upcoming Events

2025 International Fuel Ethanol Workshop & Expo

Carbon Capture & Storage Summit

Sustainable Fuels Summit: Sustainable Aviation Fuel & Renewable Diesel

North American SAF Conference & Expo

Canadian government unveils renewable fuel requirement plans.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Upcoming Events

2025 International Fuel Ethanol Workshop & Expo

Carbon Capture & Storage Summit

Sustainable Fuels Summit: Sustainable Aviation Fuel & Renewable Diesel

North American SAF Conference & Expo

Canadian government unveils renewable fuel requirement plans