SASKATCHEWAN PRESSES FOR NATIONAL RENEWABLE FUELS POLICIES

Saskatchewan continues to call on the federal government to ensure national policies that shape the future of Canada's renewable fuels industry help establish the emerging biodiesel sector and encourage primary producer involvement.

To date, the federal government has committed to a mandate of five per cent use of biofuels by 2010. The federal mandate combines ethanol and biodiesel, without specifying a target for each fuel type. While Saskatchewan continues to push Ottawa for a ten per cent renewable fuels standard by 2010, the province wants the federal government to implement a two per cent biodiesel allocation by 2010 that would increase to five per cent by 2015.

"As the national renewable fuel standard progresses further, it is vital that the federal government separate ethanol from biodiesel, and create separate mandates for each fuel," Deputy Premier and Regional Economic and Co-operative Development Minister Clay Serby said. "Because the ethanol industry in Canada is further developed than the emerging biodiesel industry, ethanol proponents are in a better position to capture the market that will be created by a national mandate. A mandate which does not separate the two fuels could ultimately be captured by ethanol alone. If nurtured and provided the opportunity to grow, the biodiesel industry will contribute to economic development in rural Saskatchewan and create further markets for Saskatchewan's oilseed producers and crushing facilities."

Saskatchewan is also calling on the federal government to legislate primary producer participation and rural community-based renewable fuel projects.

"We want to see legislation wherein there will be at least 25 per cent of all total renewable fuel produced in Canada dedicated to primary producers or community groups," Serby said. "There is tremendous potential for local producers to benefit when they become active participants in the renewable fuels industry, including opportunities to choose their own production processes, manage the selling of their products and benefit from the greater returns on investment in their local community."

"Saskatchewan looks forward to continued work with the federal government to develop national renewable fuel policies," Serby said.

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For More Information, Contact:

Donna Rehirchuk Regional Economic and Co-operative Development Regina Phone: (306) 787-2359