Canada Sets Biofuels Targets
22 December 2006
Canada’s government has announced its targets for renewable fuel content in gasoline and diesel. The government also announced C$345 million (US$299 million) in assistance to farmers and rural communities to help them develop biofuels and other bioproducts.
Rona Ambrose, Minister of the Environment, announced that the Government will require an annual average renewable content of 5% in gasoline by 2010 and a 2% requirement for renewable content in diesel fuel and heating oil by 2012.
The requirement for 5% of gasoline will amount to a requirement for about 2.1 billion liters (555 million gallons US) of renewable fuel per year in 2010; 2% of diesel fuel and heating oil will require almost another 600 million liters (159 million gallons US) in 2012.
The regulations are expected to be complex and take at least two years to develop, according to the government. Design and implementation of a regulation will require consultation with provinces, territories, affected sectors and other stakeholders. A Notice of Intent will be issued in early 2007, with discussions, consultations and studies undertaken throughout 2007.
The C$345 million will fund two programs: The Agricultural Bioproducts Innovation Program and the Capital Formation Assistance Program for Renewable Fuels Production.
Of the C$345 million:
$200 million through the Capital Formation Assistance Program for Renewable Fuels Production will provide producers with incentives for participation in new renewable fuels production capacity; and
$145 million through the Agricultural Bioproducts Innovation Program will provide support for cross-sector research networks conducting scientific research and development related to the advancement of a Canadian bio-based economy. The ABIP program is focused on:
- Feedstock production through the development of crop platforms and cropping systems suitable for conversion to bioproducts;
- Developing effective and efficient technologies for biomass conversion; and
- Product diversification through technologies relevant to production of bioproducts (e.g. industrial chemicals, biomaterials and health products).
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