No. H104/04 For release November 15, 2004 OTTAWA - A new project under Transport Canada's Freight Sustainability Demonstration Program has been selected to help reduce greenhouse gas emissions in the freight transportation sector. Transport Minister Jean-C. Lapierre today announced that Mechron Power Systems has been chosen to receive a maximum of $250,000 under the program to demonstrate the fuel efficiency benefits of its auxiliary power units for heavy-duty truck engines. "This program demonstrates the Government of Canada's commitment to partner with the freight industry to put new technologies and operating practices to the test in real-world situations," Mr. Lapierre said. The Freight Sustainability Demonstration Program supports the demonstration and evaluation of innovative tools, technologies and best practices that have the potential to reduce the growth of greenhouse gas emissions from the freight transportation sector in Canada. The Government of Canada will contribute up to 50 per cent of eligible project expenses, to a maximum of $250,000, with applicants and their partners contributing the remainder. Approximately $4.5 million will be allocated under the program between 2001 and 2006. This announcement brings the total funding allocated under the Freight Sustainability Demonstration Program to approximately $2.65 million for 21 projects. Funding for this program was provided for in the March 2004 federal budget. More information please visit the Freight Sustainability Demonstration Program website. Backgrounders with information on the selected project and the program are attached. -30- Contacts: Irène Marcheterre Director of Communications Office of the Minister, Ottawa (613) 991-0700 Helen Leslie Communications, Transport Canada, Ottawa (613) 993-0055 Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada. This news release may be made available in alternative formats for persons with visual disabilities. BACKGROUNDER PROJECT FUNDED UNDER THE FIFTH ROUND OF THE FREIGHT SUSTAINABILITY DEMONSTRATION PROGRAM The following project has been selected for the fifth round of funding under the Freight Sustainability Demonstration Program: Truck APU Fleet Demonstration Project Project location: Ottawa, Ontario This project entails a monitored fleet trial of 30 diesel engine auxiliary power units on large transport trucks. The unit reduces fuel use and greenhouse gas emissions by operating in place of the main engine while the truck is stopped. Auxiliary power units and main engine use will be monitored electronically to evaluate usage patterns and fuel savings. Mechron's technology offers trucking firms the potential for significant fuel savings (e.g., three litres/hour/truck), competitive cost, ease of installation and operational flexibility. It will demonstrate the potential of auxiliary power units to reduce fuel consumption and greenhouse gas emissions in a real-world setting and encourage their adoption by the trucking industry. Mechron's demonstration will also include important innovations, such as automatic startup and shutdown, and improved cold weather operations. Mechron intends to work with the original equipment manufacturers to offer the units as an option on new trucks. November 2004 BACKGROUNDER FREIGHT SUSTAINABILITY DEMONSTRATION PROGRAM The Freight Sustainability Demonstration Program supports the demonstration and evaluation of innovative tools, technologies, and best practices that have the potential to reduce the growth of greenhouse gas emissions in Canada's freight transportation sector. The Freight Sustainability Demonstration Program, announced as part of the Government of Canada's Action Plan 2000 on Climate Change, will allocate approximately $4.5 million between 2001 and 2006 for projects that meet the program's criteria. Projects are eligible for a maximum program contribution of $250,000 over two years. Government of Canada contributions will cover up to 50 per cent of eligible project expenses, with applicants and their partners contributing the remainder. Some twenty-three projects have already been approved for funding. An advisory committee including representatives of other federal departments, academic institutions, and other not-for-profit organizations makes recommendations on project funding. Transport Canada, with the agreement of Natural Resources Canada, makes the final selections on which projects receive funding. Applications are accepted twice a year, in the spring and the fall. For specific dates, please see the Applicant's Guide on the Freight Sustainability Demonstration Program website listed below. All participants in the Freight Sustainability Demonstration Program are required to monitor greenhouse gas emissions and report findings from their projects to the program secretariat at Transport Canada. Transport Canada is making information on successful technologies and best practices available at conferences and other venues, and on the Freight Sustainability Demonstration Program website. The Freight Sustainability Demonstration Program is part of the Freight Efficiency and Technology Initiative which includes a range of different initiatives designed to reduce the growth of greenhouse gas emissions in the freight transportation sector. November 2004