CALGARY, Alta. — The future of renewable fuels in Canada took a step forward with the launch of the NextGen Biofuels Fund.
The new fund, with $500 million in funding provided by the Government of Canada, will be managed by Sustainable Development Technology Canada (SDTC).
SDTC is an arm’s-length foundation which has received $1.05 billion from the federal government as part of its effort to create a healthy environment and a high quality of life for all Canadians.
SDTC operates two funds aimed at the development and demonstration of innovative technological solutions. The $550 million SD Tech Fund supports projects that address climate change, air quality, clean water and clean soil. The $500 million NextGen Biofuels Fund supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels.
“The NextGen Biofuels Fund will jumpstart the development and production of the next generation of renewable fuels in Canada,” said SDTC chairman James Stanford. “This fund will aim to take advantage of the abundance of suitable biomass materials available in Canada by funding large-scale demonstration facilities and encouraging the growth and retention of home-grown technologies and expertise in Canada.”
The NextGen Biofuels Fund will support up to 40%, of eligible project costs for the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels. The contribution will be repayable based on free cash flow over a period of 10 years after project completion.
Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as fast-growing grasses, agricultural residues and forest biomass, and produced through the use of non-conventional conversion technologies.
Producing the large-scale volumes of NextGen biofuels that are needed to gain market traction will provide superior environmental benefits and alternate sources of revenue for those in the agriculture, forestry and waste management sectors,” said Vicky Sharpe, president and CEO of SDTC. “In addition, next-generation biofuels are made from cellulose, rather than edible starch.”
The NextGen Biofuels Fund is now open for applications.
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