Canadian government provides $1.5 billion worth of biofuels incentives
The Canadian government has announced program details and eligibility requirements for $1.5 billion in biofuel production incentives available through the 'ecoENERGY for Biofuels' initiative.
The incentives are meant to achieve the goal of getting a five percent renewable content in all gasoline sold in Canada by 2010. Diesel fuel and heating oil will require an average of two percent renewable content by 2012. To meet those requirements, it is estimated that Canada will need three billion litres of renewable fuel a year. Canadian production is currently about 800 million litres per year.
The ecoENERGY for Biofuels initiative is one part of Canada's comprehensive biofuels strategy. In addition to regulating renewable content in gasoline and diesel fuel, the strategy also includes a $500-million investment in advancing Canada's leadership in next-generation biofuel technologies. Biofuel production is receiving a further boost through the $200-million ecoAgriculture Biofuels Capital incentive that provides farmers with the opportunity to invest directly in the industry:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: subsidies :: Canada ::
As well, the $20-million Biofuels Opportunities for Producers initiative will assist farmers and rural communities in seizing new market opportunities in the agricultural sector.
The following parameters for the program are under consideration but subject to finalization and approval:
Canadian Government, ecoAction: ecoENERGY for Biofuels, program overview.
Canadian Government, Natural Resources: ecoENERGY for Biofuels.
Canadian Government, Natural Resources: Government of Canada Calls on Industry to Participate in New Biofuels Initiative - December 3, 2007.
The incentives are meant to achieve the goal of getting a five percent renewable content in all gasoline sold in Canada by 2010. Diesel fuel and heating oil will require an average of two percent renewable content by 2012. To meet those requirements, it is estimated that Canada will need three billion litres of renewable fuel a year. Canadian production is currently about 800 million litres per year.
This government strongly supports the development of biofuels, which will lead to new markets for our farmers, help reduce greenhouse gas emissions, and create new jobs for our cities and towns. The biofuels production incentive is a perfect example of our government's practical, balanced approach to tackling climate change. - Gerry Ritz, Minister of Agriculture and Agri-FoodUnder the ecoENERGY for Biofuels initiative, which the Prime Minister announced in July 2007, the Government of Canada will invest up to $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 litre of production; biodiesel producers can receive incentives of up to 20 cents per litre, for the first three years.
The ecoENERGY for Biofuels initiative is one part of Canada's comprehensive biofuels strategy. In addition to regulating renewable content in gasoline and diesel fuel, the strategy also includes a $500-million investment in advancing Canada's leadership in next-generation biofuel technologies. Biofuel production is receiving a further boost through the $200-million ecoAgriculture Biofuels Capital incentive that provides farmers with the opportunity to invest directly in the industry:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: subsidies :: Canada ::
As well, the $20-million Biofuels Opportunities for Producers initiative will assist farmers and rural communities in seizing new market opportunities in the agricultural sector.
We owe it to future generations to take action on climate change. The ecoENERGY for Biofuels initiative shows our commitment to taking real action towards a healthier environment and a stronger economy for all Canadians. - Gary Lunn, Minister of Natural ResourcesThe biofuel production incentive program runs from April 1, 2008, to March 31, 2017, and is administered by Natural Resources Canada.
The following parameters for the program are under consideration but subject to finalization and approval:
- Available to eligible facilities constructed before March 31, 2011, subject to program volume limits.
- Incentives for up to seven years per eligible facility.
- Program volume limits of 2 billion litres of renewable alternatives to gasoline and 500 million litres of renewable alternatives to diesel, potentially increasing over time, subject to funding availability.
- Incentive rates of up to $0.10 per litre for renewable alternatives to gasoline and up to $0.20 per litre for renewable alternatives to diesel for the first three years of the program, declining over the following 6 years in the following manner:
- Incentive rates also based on average industry profitability, determined on an annual or semi-annual basis.
- A cap of 30 per cent of program volume limits per eligible recipient.
- A minimum production volume per eligible facility.
- Certain thresholds for, and reporting of, plant environmental performance such as greenhouse gas emissions, and the quality of fuels produced.
Canadian Government, ecoAction: ecoENERGY for Biofuels, program overview.
Canadian Government, Natural Resources: ecoENERGY for Biofuels.
Canadian Government, Natural Resources: Government of Canada Calls on Industry to Participate in New Biofuels Initiative - December 3, 2007.
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