PROVINCE COMMITS $80 MILLION TO DEVELOPMENT OF BIOFUEL PRODUCTION FACILITIES

Premier Lorne Calvert today unveiled an $80 million strategy to assist producers and communities in the construction and expansion of transportation ethanol or biodiesel (biofuels) production facilities in the province.

The Saskatchewan Biofuels Investment Opportunity (SaskBIO) Program was announced at the North East Saskatchewan Ethanol Forum in Tisdale. It's a four-year, $80 million provincial program that provides repayable contributions of up to $10 million per project. An additional $2 million will also be provided for biofuels and bioproducts research and development.

"The further development of a biofuels industry is an extraordinary opportunity for Saskatchewan, and we are taking the necessary steps to ensure the opportunity is realized," Calvert said. "We created SaskBIO to provide an opportunity for farmers and communities to participate in the value-added biofuels industry in Saskatchewan through ownership of biofuels facilities. This program will also ensure that Saskatchewan is an attractive jurisdiction in which to build a sustainable biofuels industry."

Corporations, individuals or partnerships, including co-operatives, are eligible to apply for funding to construct new or expand existing biofuels production facilities. Program applicants must have a minimum of five per cent farmer-community investment, and a minimum production capacity of two million litres per year for both new and expanding facilities.

The expansion of a biofuels industry in Saskatchewan is expected to create more jobs and economic spin-offs in rural Saskatchewan; develop new markets for Saskatchewan agricultural producers; increase activity in the Saskatchewan economy; decrease our impact on the environment; and create new opportunities for Saskatchewan's premiere research community.

"The Government and people of Saskatchewan have embraced ethanol and biodiesel as a means to help end our reliance on non-renewable oil, bring new prosperity to rural areas and contribute to the fight against climate change," Minister of Regional Economic and Co-operative Development Lon Borgerson said. "Today's announcement will help us maintain our leadership role in the Canadian renewable fuels industry."

Saskatchewan is well-suited for the production of biofuels. The province has approximately 45 per cent of all the arable land in Canada, more than 40 per cent of the nation's agricultural feedstock and a significant forest resource. Saskatchewan was also the first province to make a legislative commitment to ethanol use.

Total funding for the capital program will be $80 million over four years, starting in 2008-09. Applications will be accepted upon completion of program details.

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For more information, contact:

Scott Brown
Regional Economic and Co-operative Development
Regina
Phone: 306-787-4031
Email: sbrown@agr.gov.sk.ca