OTTAWA - The Government of Canada today issued its invitation to industry to submit proposals under Round 2 of the Ethanol Expansion Program for contributions toward the construction of new fuel ethanol plants or the expansion of existing plants. A total of $27.5 million is available in this round. The $100‑million Ethanol Expansion Program was launched in October 2003 under Canada's climate change plan to reduce greenhouse gas (GHG) emissions and is part of a larger renewable fuels strategy that also includes support for research and development, exemptions from federal fuel excise taxes and consumer awareness activities. Under Round 1, six new ethanol plants across Canada are eligible for up to $72 million in contributions toward construction costs. These plants, for which investments will total over $450 million, plan to produce a total of 650 million litres of fuel ethanol per year and more than quadruple Canadian supply. Projects that receive funding under Round 2 of the program will build on these amounts. "The new ethanol plants across Canada supported by this program will help us reduce transportation-related greenhouse gas emissions as well as create new economic opportunities," said the Honourable R. John Efford, Minister of Natural Resources Canada. "Promoting clean, renewable energy and greater energy efficiency will help ensure a sustainable future for Canadians and will play a key role in helping our country address climate change. " Ethanol is a renewable fuel that can be produced from grain or other plant material. Using gasoline with ethanol is one way to reduce GHG emissions and take action against climate change. All gasoline vehicles manufactured since the 1980s can use gasoline with up to 10 percent ethanol and over 1,000 retail stations in Canada offer this fuel to motorists today. "I am encouraged by the success of the projects supported by the first round of the program. We expect that the projects supported by the second round of the program will 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 Canada. The increase in Canadian fuel ethanol production capacity facilitated by the Ethanol Expansion Program is supporting current and proposed programs for ethanol content in gasoline, and is an important step toward the Government of Canada's target of having at least 35 percent of Canada's gasoline contain 10-percent ethanol by 2010. The selection process for the Ethanol Expansion Program is competitive and is based on factors relating to how effectively contributed funds will expand fuel ethanol production and reduce GHG emissions. 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. To obtain a copy of the Invitation to Proponents - Round 2, or for further information on the Ethanol Expansion Program, please visit http://www.vehiclefuels.gc.ca/. FOR BROADCAST USE: Alternative biofuels like ethanol are giving motorists a cleaner gasoline while creating an emerging market for Canada's farmers. Today in Ottawa, the Government of Canada announced $27.5 million in funding for a second round of projects that will support the construction of new fuel ethanol plants, or the expansion of existing ones, across Canada. 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
