Government of Canada 2004/02 February 13, 2004 GOVERNMENT OF CANADA ANNOUNCES SUCCESSFUL PROPOSALS IN ETHANOL EXPANSION PROGRAM OTTAWA, ON - Seven projects from across Canada will receive funding to build the country's ethanol future. The Government of Canada selected the companies' proposals for construction of new fuel ethanol facilities as part of a competitive process under the Ethanol Expansion Program. The recipient companies are as follows: Commercial Alcohols, Inc., Varennes, QC; Husky Oil Marketing Company, Minnedosa, MB; Husky Oil Operations Ltd., Lloydminster, SK; NorAmera BioEnergy Corp., Weyburn, SK; Okanagan Biofuels Inc., Kelowna, BC; Seaway Grain Processors, Inc., Cornwall, ON; and Suncor Energy Products Inc., Sarnia, ON. Expanding the availability of fuel ethanol will help address climate change and create new economic opportunities for Canadians. Ethanol produced from grain reduces greenhouse gas (GHG) emissions that contribute to climate change by up to 40 percent compared to gasoline. All gasoline vehicles manufactured since 1979 can use ethanol blends of up to 10 percent . "These contributions will help provide the capital and confidence needed to make these plants a reality," said the Honourable R. John Efford, Minister of Natural Resources Canada. "By working together with the private sector to increase production of ethanol-blended gasoline, the Government of Canada will ensure that our transportation sector will reduce GHG emissions that contribute to climate change ." "This is a very exciting time for the ethanol industry in Canada," said the honourable Bob Speller, Minister of Agriculture and Agri-Food. "This is a positive announcement for Canadian agriculture, as these plants will create new markets for our farmers, boost our rural communities and support regional development." The 750 million litres of annual fuel ethanol capacity planned by these projects will more than quadruple Canadian production (currently about 200 million litres per year), increasing supply to almost 1 billion litres. There are currently more than 1,000 retail locations selling ethanol-blended gasoline in Canada. The seven projects will produce fuel ethanol from grain (corn or wheat) using proven technology. The Government of Canada is also actively working with industry to research and develop new technology that would produce ethanol from agricultural residues (including straw and corn stalks) and forestry byproducts. Ethanol produced with this technology is expected to result in even greater GHG reductions - from 60 to 80 percent compared to gasoline. The funding under the Ethanol Expansion Program is part of a larger bio-fuels strategy that also includes the extension of the National Biomass Ethanol Program, research and development under the biotechnology component of the Technology and Innovation Strategy, and an investment in biodiesel. The Government of Canada is also promoting greater use of ethanol through consumer-awareness campaigns and ongoing education initiatives. The Government of Canada's approach to climate change is focused on making the right choices for Canada. This will ensure that the actions taken contribute to long-term goals of building a sustainable economy for the 21 st century, a healthier environment and strong communities, while affirming Canada's place in the world. The first round of the Ethanol Expansion Program has a total allocation of $78 million. Funding for this program is part of the $2-billion commitment to climate change action made in Budget 2003. The Government of Canada has committed more than $3.7 billion to climate change programs and to the development of leading-edge technologies over the past five years. For more information, media may contact: Alexandra Muir Ghyslain Charron Director of Communications Media Relations Office of the Minister, Natural Resources Canada Natural Resources Canada (613) 992-4447 (613) 947-8246 Vern Greenshields Media Relations Communications Advisor Agriculture and Agri-Food Canada Minister Speller 's Office (613) 759-7972 (613) 759-1020 The following two media backgrounders and photo are also available: Ethanol Expansion Program Profiles Of Successful Proponents Video B-roll for this announcement was available by satellite February 12, 2004 through Canada News Wire. A copy can be obtained at broadcast@newswire.ca or at 416-863-9350.
