AAFC: Canada's New Government Invests an Additional $10 Million for Biofuel Development
MARCH 3, 2007 - 13:52
FREDERICTON, NEW BRUNSWICK--(CCNMatthews - March 3, 2007) - The
Honourable Chuck Strahl, Minister of Agriculture and Agri-Food
and Minister for the Canadian Wheat
Board, today announced an additional
$10 million in funding for the Biofuels Opportunities for Producers
Initiative (BOPI).
"Canada's New Government is serious about achieving real results on the environment, and to create new opportunities for our farmers. Expanding this program is part of our commitment to getting that job done," said Minister Strahl. "The additional $10 million investment will give producers the boost needed to develop new market opportunities for the agricultural sector."
"Today's announcement recognizes that farmers are critical to the success of developing and bringing to market alternative fuels for the benefit of our citizens and environment," said the Honourable John Baird, Minister of the Environment. "This initiative will help ensure farmers have a chance to participate in and benefit from helping Canada meet its target of 5 per cent biofuel content in fuels by 2010."
In July 2006, Canada's New Government announced $10 million BOPI. High producer demand to participate in this program led to today's announcement of $10 million which doubles the total BOPI funding up to $20 million over two years.
BOPI helps agricultural producers develop sound business proposals, as well as undertake feasibility or other studies to support the creation and expansion of the biofuel production capacity. This initiative will continue to be delivered through the regional industry councils that administer AAFC's Advancing Canadian Agriculture and Agri-Food (ACAAF) Program.
In addition to this initiative, in December 2006 Canada's New Government announced it would regulate the use of renewable fuels in Canada and has put in place $500 million in programs to assist farmers and rural communities seize new market opportunities in the agricultural bioproducts sector.
BACKGROUNDER
Additional $10 million for Biofuels Opportunities for Producers Initiative (BOPI).
The Government of Canada is committed to requiring five per cent average renewable fuel content in transportation fuels by 2010 and intends to regulate a two per cent requirement for renewable content in diesel fuel and heating oil by 2012. Environment Canada is leading the development of the strategy to reach this goal, with support from Natural Resources Canada and Agriculture and Agri-Food Canada (AAFC).
AAFC wants to ensure that these targets are implemented in ways that result in the greatest possible benefit to the agriculture sector, including ownership of biofuels production facilities by agricultural producers.
On July 17, 2006, Minister Strahl announced $10 million in funding for the Biofuels Opportunities for Producers Initiative (BOPI), which is delivered through the regional industry councils that administer AAFC's Advancing Canadian Agriculture and Agri-Food (ACAAF) Program. The councils undertook this expanded role as it is consistent with their mandate to position the sector at the leading edge to seize new opportunities.
Due to the high demand of producers and industry, up to $3 million of the additional BOPI funding will be made available immediately under ACAAF to fund approved projects. Another $7 million will be provided in 2007-2008 fiscal year for round two of BOPI funding.
Funding is provided for agricultural producers in the following key areas:
1. hiring technical, financial, and business planning advisors to assist in developing sound business proposals to support the creation and expansion of biofuels production capacity with significant ownership by agricultural producers;
2. undertaking feasibility and other studies required to support business proposals;
3. investigating the pre-commercialization of biofuels related research; and
4. gathering information to help identify opportunities and provide necessary input to generate industry involvement in biofuels capacity building.
Individual project funding will be capped at $300,000 and at least 25 per cent of the project cost must be provided by the industry.
Opportunities for greater involvement in biofuels production facilities will allow agricultural producers to become participants in the value chain and increase their share of the benefits from renewable fuels production beyond delivering feedstock.
For more information on BOPI, the ACAAF program and the councils, please visit the web site at http://www.agr.gc.ca/bopi/.
CONTACT INFORMATION
Agriculture and Agri-Food Canada
Ottawa, Ontario
Media Relations
613-759-7972
1-866-345-7972
or
Minister Strahl's Office
Jeff Howard
Press Secretary
613-759-1059
or
Office of the Minister of the Environment
Eric Richer
Press Secretary
819-997-1441
or
Environment Canada
Media Relations
819-934-8008
1-888-908-8008
