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Feds plan to change the makeup of diesel by 2012

SASKATOON, Sask. -- In a move to aid the agriculture sector and improve the environment, the federal government unv...


SASKATOON, Sask. — In a move to aid the agriculture sector and improve the environment, the federal government unveiled plans to require a biodiesel blend of 2% in diesel fuel by 2012.

At a news conference in Saskatoon, Canada’s federal government announced it would regulate the use of renewable fuels in Canada and deliver $345 million to assist farmers and rural communities seize new market opportunities in the agricultural bioproducts sector.

The government plans to regulate an annual average renewable content of 5% in gasoline by 2010 and intends to have a 2% requirement for renewable content in diesel fuel and heating oil by 2012.

This is a win-win-win situation, said Environment Minister Rona Ambrose. Canadians will reap environmental benefits, our farmers and rural communities will profit, and by continuing to work towards a viable domestic biofuels industry we will secure Canada’s place in the growing bio-economy.

The $345 million funding will be put towards two agriculture programs that will help bolster the development of biofuels and other bioproducts: The Agricultural Bioproducts Innovation Program and the Capital Formation Assistance Program for Renewable Fuels Production.

These programs are an important step in achieving the government’s objective of five per cent renewable content in transportation fuels by 2010, while also creating new economic opportunities for our farmers and agricultural sector, said Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board.

Of the announced funding, $200 million will go towards the Capital Formation Assistance Program for Renewable Fuels Production to provide producers with incentives for participation; and $145 million will go towards the Agricultural Bioproducts Innovation Program to support scientific research and development.


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