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