Canadian Government Announces Details for Biofuel Production Incentives
03 December 2007
The Government of Canada has announced program details and eligibility requirements for C$1.5 billion in biofuel production incentives available through the Government of Canada’s ecoENERGY for Biofuels initiative. (Earlier post.)
Gasoline sold in Canada will require an average of 5% renewable content by 2010. Diesel fuel and heating oil will require an average of 2% renewable content by 2012. To meet those requirements, it is estimated that Canada will need three billion liters (793 million gallons US) of renewable fuel a year. Canadian production is currently about 800 million liters (211 million gallons US) per year.
Under the ecoENERGY for Biofuels initiative, which the Prime Minister announced in July 2007, the Government of Canada will invest up to C$1.5 billion over nine years in incentives to encourage greater private sector investment in biofuel production. Producers of ethanol and other renewable alternatives to gasoline will be eligible for incentives of up to 10 cents per liter of production; biodiesel producers can receive incentives of up to 20 cents per liter, for the first three years.
The ecoENERGY for Biofuels initiative is one part of Canada’s biofuels strategy. In addition to regulating renewable content in gasoline and diesel fuel, the strategy also includes a C$500-million investment in advancing Canada’s leadership in next-generation biofuel technologies. Biofuel production is receiving a further boost through the C$200-million ecoAgriculture Biofuels Capital incentive that provides farmers with the opportunity to invest directly in the industry.
A $20-million Biofuels Opportunities for Producers initiative will assist farmers and rural communities in seizing new market opportunities in the agricultural sector.
The biofuel production incentive program runs from April 1, 2008, to March 31, 2017, and is administered by Natural Resources Canada. Details of the program, including eligibility requirements and a description of the application process, are now available at http://ecoaction.gc.ca/biofuels.
This may not look like much of an effort but it is from a country currently producing 150% of its oil consumption with reserves for another 250+ years.
Canada has enough land mass to switch to 100% agrofuel but what would happend to the existing and planned oil/gas infrastructures?
Canada doesn't not have to rush into corn ethanol and could afford to wait for the arrival of more efficient second generation agrofuel plants.
Posted by: Harvey D | 04 December 2007 at 11:26 AM
Food derived biofuels must be reconsidered in the face of world wide food price increases.
Canada could fill its country with its very safe and low operating cost CANDU reactors, so that all excess natural gas, coal and oil can be shipped to the US. Even water heating and house heating could be done with heat-pumps to save the natural gas for export. CANDU reactors could be modified to produce mostly hot water at low pressures to produce the heat needed for modern cities. Modernised hundred year old technology can turn the heat into air-cooling as well. The cost of Nuclear Electricity is in the very high pressure steam turbo generator system and not in the fuel. A similar situation exists to a lesser degree with Coal fired plants. Even $100 a ton coal represents less than 8 cents per KWH. Coal may only cost $5 a ton at the mine.
Posted by: Henry Gibson | 11 June 2008 at 01:44 PM