Canadian Prime Minister, Stephen Harper, has announced a substantial investment to boost Canada’s production of biofuels.  Under ecoENERGY for Biofuels, the government will provide up to $1.5 billion in the form of incentives over nine years to producers of renewable alternatives to gasoline and diesel fuel.

“With leading-edge technology and abundant supplies of grains, oilseeds, and other feedstocks, Canada is uniquely positioned to become a global leader in the production of biofuels,” said the Prime Minister.

Last December, Canada’s New Government announced a new regulation requiring a five per cent average renewable content in gasoline by 2010.  At that time, the government also signalled its intention to develop a similar requirement of two per cent renewable content for diesel and heating oil by 2012.

“With the transportation sector accounting for more than a quarter of Canada’s greenhouse gas output, increasing the renewable content in our fuel is going to put a real dent in emissions,” said Prime Minister Harper.

Close to three billion litres of renewable fuels will be needed annually to meet the requirements of the new regulations.  Canadian production in 2006 was only about 400 million litres, so the expansion will represent a tremendous economic opportunity for the country’s 61,000 grain and oilseeds producers.

“Good for the environment and good for farmers, our government’s investment in biofuels is a double win,” said Prime Minister Harper.