STRONGFIELD, Sask. – Reannouncing a $1.5 billion government biofuel initiative brought out 300 people in the midday sun July 5 at Strongfield, Sask., population 42.
Prime minister Stephen Harper, federal agriculture minister Chuck Strahl and Saskatchewan MPs were at the Gardiner Dam Terminal to remind those gathered of the nine year, $1.5 billion biofuel strategy that pays 10 cents a litre subsidy to ethanol producers and 20 cents per litre for biodiesel.
“With leading edge technology and abundant supplies of grains, oilseeds and other feedstocks, Canada is uniquely positioned to become a global leader in the production of biofuels,” said Harper.
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Strahl said prairie farmers would be the direct beneficiaries of the program through the creation of new markets for their cereal and oilseeds.
The federal government created regulations requiring gasoline to contain five percent renewable fuel by 2010 and diesel to have two percent renewable content by 2012.
Canadian ethanol production is expected to rise to 1.9 billion litres by 2009 from 400 million litres this year.
Strahl said the terminal project near Strongfield would provide farmers the opportunity to profit from higher commodity prices and from the expanding market for biofuel.
The Gardiner Dam Terminal has broken ground on its $115 million commitment to ethanol production. The farmer-owned terminal is expected to produce 95 million litres of ethanol annually by 2009, consuming 9.5 million bushels of locally grown cereal.
Jeff Passmore of the Canadian Renewable Fuel Association said commodity prices for corn and cereal grain continue to climb due to their use in ethanol production.
Regina Liberal Party MP Ralph Goodale said the announcement was simply a restating of Ottawa’s budget plan.
“There isn’t anything new here from the government. But farmers are working to build on an opportunity that has developed in renewable energy and that is important,” said Goodale.
