September 13, 2007
Federal government pledges $500 million to support renewable fuels
Calgary, Alberta – The federal government has provided $500 million in funding to launch the NextGen Biofuels Fund, which will provide support for next-generation renewable fuels. The fund will be managed by Sustainable Development Technology Canada (SDTC), an arm’s-length foundation committed to creating a healthy environment and high quality of life for Canadians.
The fund will support up to 40 percent of eligible project costs for the establishment of first-of-kind, large demonstration-scale facilities for the production of next-generation renewable fuels. The contribution will be repayable, based on free cash flow over a period of ten years after project completion.
“The NextGen Biofuels Fund will jump-start the development and production of the next generation of renewable fuels in Canada,” said SDTC Chairman James Stanford. “This fund will aim to take advantage of the abundance of suitable biomass materials available in Canada by funding large-scale demonstration facilities and encouraging the growth and retention of home-grown technologies and expertise in Canada.”
To be eligible for application, a project must be a first-of-kind facility that primarily produces a next-generation renewable fuel at large demonstration scale; be located in Canada; use feedstocks that are, or could be, representative of Canadian biomass; and have demonstrated their technology at the pre-commercial pilot scale.
Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as fast-growing grasses, agricultural residues and forest biomass, and are produced through the use of non-conventional conversion technologies.