The Canadian government said Monday (17/07) it will give grassroots groups C$11
million (US$9.7 million) toward boosting biofuel production to meet its
2010 production target. "Well have to more than double our production,"
Agriculture Minister Chuck Strahl said at a biofuel conference in
Calgary. Ottawa wants 5 percent of Canada s transport fuel to be renewable by
2010, which will require 3 billion litres (793 million US gallons) of
biofuel from 8 million tonnes of grain, oilseeds and biomass annually,
Strahl said.
The government is developing a strategy to increase production of
biofuels -- renewable energy produced from agricultural commodities
including canola, wheat and corn -- that is expected to be introduced to
cabinet this autumn.
"These initiatives will not only help provide new opportunities to
farmers, they will also help lay the foundation for Canada s biofuels
strategy," Strahl said. Most of the funds, which are a part of the 2006 budget, will go to
farmers and rural communities, to develop business proposals and
feasibility studies for biofuel production.
"One-third of the ownership has to be producers," Strahl said at a press
conference. Farmers want to move away from being low-cost commodity producers to
value-added producers who will benefit from higher revenue, Strahl said.Doug Hooper, chief executive of Canadian Bioenergy Corp., a biodiesel
importing and distribution company based in the western province British
Columbia, welcomed Strahl s announcement. He did not, however, expect
Canadas biodiesel production to reach the government s 2010 target.
"We re looking at a minimum 2 percent biodiesel. We dont forecast that
we can either build the capacity or demand for biodiesel (by 2010),"
Hooper said.
"Our mission here is not to take food out of peoples mouths and put it
into gas tanks."
Canada will increase its capacity for biodiesel as its canola surplus
continues to escalate, Hooper said.
Several Canadian provinces already require ethanol, an alcohol fuel
additive usually fermented from corn, to be blended into gasoline.
(Por Marcy Nicholson,
Planet Ark, 18/07/2006)