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ecoENERGY for Biofuels Overview
The ecoENERGY for Biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. The program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada.
ecoENERGY for Biofuels will invest up to $1.5 billion over nine years in support of biofuel production in Canada. Administered by Natural Resources Canada, the ecoENERGY for Biofuels program runs from April 1, 2008 to March 31, 2017. Recipients will be entitled to receive incentives for up to seven consecutive years.
Program Update
August 31, 2009 – ecoENERGY for Biofuels program
Following ecoENERGY for Biofuels' first year of operation, there continues to be a strong market interest in the program and in expanding Canada's production of renewable fuels such as ethanol and biodiesel.
To date, ecoENERGY for Biofuels has received 54 applications and the program has deemed 28 applicants to be eligible for funding. Natural Resources Canada has signed contribution agreements with 23 successful applicants, both existing and proposed facilities. Payments are being made on a quarterly basis to facilities currently in production that have signed a contribution agreement and for which all environmental requirements have been fulfilled.
The program can only sign contribution agreements within its financial authority and must operate within its annual budget. As previously announced, based on the department's current review, the ecoENERGY for Biofuels program may not be able to fund all of the applications in hand.
The ecoENERGY for Biofuels program continues to assess applications in the order in which they were deemed complete. Natural Resources Canada is processing applications as quickly as possible while still exercising the due diligence associated with providing government funds. The program is finalizing contribution agreements with companies that have been deemed eligible to date and will be in a position to deem additional companies eligible in the coming weeks.
Should some projects not move forward, additional applicants will be considered for funding. Preference could be given to renewable alternatives to gasoline or to renewable alternatives to diesel, depending on progress towards achieving program targets for each fuel type.
Incentive rates for Quarter 1, Fiscal Year 2009-2010.
For alternatives to gasoline (ethanol):
Quarter 1 FY 2009-2010 10 cents/litre
For alternatives to diesel:
Biodiesel companies receiving payments have been notified of the rates for Quarter 1. Due to the small number of companies involved, the program will not be making these rates public in order to protect commercial confidentiality.
