ecoENERGY for Biofuels

What is it?

ecoENERGY for Biofuels will invest up to $1.5 billion over nine years to boost Canada's production of renewable fuels such as ethanol and biodiesel. It's intended to make it more attractive for companies to invest in their production facilities by partially offsetting the risk associated with fluctuating feedstock and fuel prices.

What is the benefit to your company?

The program will provide operating incentives to producers of renewable alternatives to gasoline and diesel. The level of funding will be based on production levels and other factors.

How does it work?

• The details of the program have not yet been finalized. The final details and information on the application process will be released later this year. However, here is some of what is being considered:
• Applicable to eligible production between April 1, 2008 and March 31, 2017.
• 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. The funding rates will decline during the following six years of the program.
• 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.
• There will be thresholds and reporting requirements of items such as plant environmental performance i.e. greenhouse gas emissions and the quality of fuel produced.

Where can I find more information?

If you have any questions or comments, please contact ecoENERGY for Biofuels by e-mail http://oee.nrcan.gc.ca/common/send-email.cfm?id=-879070946&attr=16 or fax 613-943-8169.

For more information on the federal government's strategy on renewable fuels, go to Renewal Fuel Strategy at http://www.ecoaction.gc.ca/ecoenergy-ecoenergie/renewablefuels-carburantsrenouvelables-eng.cfm

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