OTTAWA - The Government of Canada announced today that its vehicle fleet is the first in the world to use cellulose ethanol on an ongoing basis. The Honourable R. John Efford, Minister of Natural Resources Canada (NRCan), and Mr. Brian Foody, President and Chief Executive Officer of Iogen Corporation, helped fill up vehicles from the federal fleet with cellulose ethanol at NRCan's pumps. Iogen makes the ethanol from wheat straw at its demonstration facility in Ottawa. Iogen is a world leader in cellulose ethanol technology. NRCan, Agriculture and Agri-Food Canada and other Government of Canada departments are now using Iogen's cellulose ethanol at a rate of about 100,000 litres per year. The Government of Canada operates 13 E-85 (85 percent ethanol and 15 percent gasoline) fuelling stations and approximately 900 flex-fuel vehicles, which can use up to 85 percent ethanol. It places a high priority on lower-emissions fuels because transportation accounts for about 25 percent of all greenhouse gas (GHG) emissions in Canada. "I'm proud that the Government of Canada is showing the world that this type of ethanol works and will help us lower GHG emissions that contribute to climate change," said Minister Efford. "Ethanol is a clean, renewable transportation fuel that will help ensure a sustainable future for Canadians, and cellulose ethanol is a leading-edge technology, helping Canada remain at the forefront of the next generation of biofuels." Cellulose ethanol is made from the non-food portion of agricultural or wood residue and has the potential to reduce GHG emissions further than traditional grain-based fuel ethanol. Like traditional fuel ethanol, cellulose ethanol can be added to gasoline and used in all gasoline vehicles today. Iogen has been producing cellulose ethanol for commercial use since April 2004. Iogen's technology is a result of more than 25 years of research and development and $130 million in investment by Iogen and its partners, including more than $21 million from the Government of Canada. "The cellulose ethanol E-85 fleet is the fruit of years of positive collaboration between NRCan and Iogen. The Government of Canada's investment in Iogen technology was critical to the development of this low-carbon-dioxide fuel, and we are proud to see that NRCan is the world's first fleet powered by this leading Canadian technology," said Brian Foody, Iogen's President and CEO. "Production of cellulose ethanol will help add to economic growth in rural areas, offer alternative markets for our farmers and increase the use of renewable energy in Canada," said the Honourable Andy Mitchell, Minister of Agriculture and Agri-Food. As part of a larger renewable fuels strategy, the Government of Canada has supported ethanol research and development since the mid-1980s and has exempted ethanol from the federal excise tax on gasoline since 1992. The $100‑million Ethanol Expansion Program was launched in October 2003 under Canada's climate change plan and is a key initiative in support of the Government of Canada's target of having 35 percent of its gasoline contain 10 percent ethanol by 2010. Under Round 1 of the Ethanol Expansion Program, six new ethanol plants across Canada are eligible for up to $72 million in contributions toward construction costs. These plants plan to produce a total of 650 million litres of fuel ethanol per year and more than quadruple Canadian supply. A total of $27.5 million is available in Round 2, which was announced December 6, 2004. The proposal submission requirements as well as eligibility and evaluation criteria for Round 2 are described in the program's Invitation to Proponents - Round 2. The deadline for proposals is February 22, 2005. All gasoline vehicles manufactured since the 1980s can use gasoline with up to 10 percent ethanol and more than 1,000 retail stations in Canada offer this fuel to motorists today. For further information on ethanol and the Government of Canada's support for renewable fuels, please visit http://www.vehiclefuels.gc.ca/. For further information on Iogen Corporation, please visit the company's Web site at http://www.iogen.ca/. FOR BROADCAST USE: The Government of Canada today announced that its vehicle fleet is the first in the world to use cellulose-based ethanol. Iogen Corporation produces the ethanol from wheat straw at its leading-edge demonstration facility in Ottawa. For more information, media may contact: Ghyslain Charron Media Relations Natural Resources Canada (613) 992-4447 Tom Ormsby Director of Communications Office of the Minister Natural Resources Canada (613) 996-2007 Geneviève Gareau-Lavoie Media Relations Agriculture and Agri-Food Canada (613) 694-2735 Tania Glithero Marketing and communications Iogen Corporation (613) 733-9830 Ext. 2005
