Canada pushing for B2 biodiesel blend by 2012

| 1/3/2007

Diesel fuel in Canada will be blended with a minimum of 2-percent renewable biodiesel by 2012, if federal environment officials get their way.

The country's proposed Clean Air Act - a work in progress - includes an alternative fuels package as environmental analysts had predicted.

The measure also includes a mandate for a minimum of 5-percent ethanol in gasoline.

Canadian Environment Minister Rona Ambrose and Agricultural Minister Chuck Stahl announced a $345 million package divided up into biodiesel plant subsidies and research and development.

The $200 million in plant subsidies, reported Dec. 20, 2006, will ensure farmers play a key role in developing regional biodiesel.

The second part of the package - the $145 million for research and development - will involve laboratory testing to standardize biodiesel in terms of quality.

Biodiesel will be put through the rigors of testing over the road in Alberta, a province of prairie and mountains where extreme climates can be found.

The Alberta demonstration project will help the Canadian General Standards Board generate standards to be used in the rest of the country, according to environmental officials.