ecoENERGY for Biofuels Program

About the Program

The ecoENERGY for Biofuels Initiative (which has now ended) invested up to $1.5 billion over 9 years to boost Canada's production of biofuels. Administered by Natural Resources Canada, the ecoENERGY for Biofuels program ran from April 1, 2008 to March 31, 2017. Recipients were entitled to receive incentives for up to seven consecutive years.

The initiative provided operating incentives to producers of renewable alternatives to gasoline and diesel based on production levels and market conditions. It made investment in production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices.

In accordance with Program parameters and subject to funding availability, the ecoENERGY for Biofuels Program entered into non-repayable Contribution Agreements with successful recipients meeting the Program's criteria. Payment of an operating incentive was made only to recipients who had signed a Contribution Agreement with Natural Resources Canada (NRCan) and had completed an environmental assessment to the satisfaction of a federal authority. The operating incentive was provided on a per litre basis, based on volume of renewable fuels produced in Canada and sold by such recipients, and as agreed upon in the Contribution Agreement. NRCan determined the number of litres for which a recipient could claim under the Program, according to Program parameters.

Funding

In 2008, the Government of Canada allocated $1.48B over nine years to grow a sustainable domestic renewable fuel industry, in support of Environment and Climate Change Canada’s Federal Renewable Fuels Regulation. The program ended on March 31, 2017, having provided a total of $930M in non-payable contributions to support the domestic biofuel industry.

Achievements

Over the nine-year timeframe, thanks to both Federal and Provincial support, the domestic industry grew from 786.1 million litres of ethanol and 92.8 million litres of biodiesel, to 1,700M litres of ethanol, and 430M litres of biodiesel.

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