July 9, 2007


Federal government announces $1.5 billion in incentives for biofuels

Strongfield, Saskatchewan – Prime Minister Stephen Harper has announced up to $1.5 billion in incentives over nine years to the ecoENERGY for Biofuels program. The incentives will be offered to producers of renewable alternatives to gasoline and diesel fuel.

“With leading-edge technology and abundant supplies of grains, oilseeds, and other feedstocks, Canada is uniquely positioned to become a global leader in the production of biofuels,” Harper says. “With the transportation sector accounting for more than a quarter of Canada’s greenhouse gas output, increasing the renewable content in our fuel is going to put a real dent in emissions.”

Last December, the federal government announced a new regulation requiring a five per cent average renewable content in gasoline by 2010; it also signalled its intention to develop a similar requirement of two per cent renewable content for diesel and heating oil by 2012. Almost three billion litres of renewable fuels will be needed annually to meet the new requirements, but Canadian production in 2006 was only around 400 million litres. Canada has approximately 61,000 grain and oilseed producers.

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