Government of Canada Calls on Industry to Participate in New Biofuels Initiative
Gasoline sold in Canada will require an average of five percent renewable content 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.
Under 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.