More money to boost biodiesel and ethanol development in Canada

| Wednesday, December 20, 2006

Canada is pumping $200 million into the development of biofuels in an effort to reduce the amount of carbon dioxide pumped into the atmosphere.

Prime Minister Stephen Harper of the Conservative Party, elected in January 2006, named people to his cabinet to target a reduction in greenhouse gases with a clean-air strategy.

And it will be farmers leading the way, according to federal Environment Minister Rona Ambrose and Agriculture Minister Chuck Strahl.

The financial incentive will help farmers develop and invest in regional production plants to turn renewable energy crops like soybeans into biodiesel and corn into ethanol.

Industry insiders, according to two major Canadian news sources - canada.com and The Globe and Mail - are confident the government initiative will promote new biodiesel and ethanol standards and requirements.

The government is likely to demand by 2010 that petroleum diesel be blended with 2 percent biodiesel, and gasoline contain a similar amount of ethanol, industry insiders said.

The target is reduced greenhouse gases, namely carbon dioxide, that are produced through the burning of fuels.

Biodiesel and ethanol, since they are not petroleum-based, reduce the amount of carbon dioxide, carbon monoxide and particulate matter put into the atmosphere.

 

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