The Government of Canada is committed to expanding the production and use of cleaner biofuels (also called renewable fuels) such as ethanol and biodiesel. The Government has a four-pronged biofuels strategy in order to:
- reduce the greenhouse gas (GHG) emissions resulting from fuel use,
- encourage greater production of biofuels,
- provide new market opportunities for agricultural producers and rural communities, and
- accelerate the commercialization of new biofuel technologies.
Accelerating the commercialization of new technologies
The 2007 Budget made $500 million available to Sustainable Development Technology Canada (SDTC) to invest with the private sector in establishing large scale demonstration facilities for the production of next-generation biofuels. Next-generation biofuels are renewable alternatives to gasoline, produced from non-traditional feedstocks such as wheat straw, corn stover, wood residue and switchgrass, and renewable alternatives to diesel, produced from non-traditional feedstocks such as waste oils and animal fats.
Next-generation biofuels have the potential to generate even greater environmental benefits than traditional biofuels. Whereas use of traditional biofuels result in 40-80% less greenhouse gas (GHG) emissions compared to gasoline or diesel, next-generation biofuels can result in up to 100% fewer GHG emissions on a life-cycle basis compared to these fuels.
Next-generation Biofuels Fund
The Government and the SDTC have signed an agreement that provides the terms and conditions under which the SDTC will manage the $500M NextGen Biofuels FundTM. The Fund will:
- facilitate the establishment of first-of-kind, large scale demonstration facilities for the production of next-generation biofuels and co-products in Canada
- improve the sustainable development impacts arising from the production and use of biofuels in Canada
- encourage retention and growth of technology expertise and innovation capacity for the production of next-generation biofuels in Canada
Who can apply?
For detailed information on the eligibility and selection criteria for the Fund and how to apply, visit SDTC's website.
An eligible project must:
- be a first-of kind facility that primarily produces a next-generation biofuel at large demonstration-scale;
- be located in Canada;
- use feedstocks that are or could be representative of Canadian biomass; and
- have demonstrated their technology at the pre-commercial pilot scale.
For the purposes of this Fund, a next-generation biofuel is produced using non-traditional renewable feedstocks such as lignocellulosic materials (including fast-growing grasses, agricultural residues and forest biomass) and non-conventional conversion technologies.
This measure complements other research and development initiatives including the following: