PROVINCE ENCOURAGED BY TALKS ON RENEWABLE FUELS STRATEGY

A Saskatchewan delegation has returned home from Ottawa optimistic about the establishment of a national mandate on the use of biofuels in gas and diesel blends.

The group, led by Deputy Premier and Regional Economic and Co-operative Development Minister Clay Serby believes the mandate would help Saskatchewan to extend its leadership role in Canada's renewable fuels industry.

"We are encouraged that the federal government understands the need for a national standard and we are optimistic that Canada is moving in that direction," Serby said. "We will continue to press Ottawa to make it a reality."

The delegation also pressed the need for the federal government to provide a level of support that parallels support provided to U.S. ethanol producers and agricultural producers moving into the industry.

"We believe that, by providing a level playing field with our competitors, the Government of Canada can ensure that the industry is viable in the long term," Serby said.

During talks with federal agriculture Minister Chuck Strahl and the Saskatchewan Conservative Caucus, the Province's delegation also stressed the critical need for the national standard to include provisions that promote producer and community ownership in the industry and the utilization of Western Canadian feedstocks to the greatest extent possible.

The delegation also pushed for over 50 per cent of the renewable fuel feedstock to come from Western Canada along with the provincial production facilities based on land and biomass availability, due to the fact that Saskatchewan contains 47 per cent of all of Canada's arable land.

Representatives from a wide cross section of government, industry and community groups accompanied Minister Serby and government officials on the trip. Those stakeholders are already actively engaged in creating an industry-led, strategic approach to building the renewable fuel industry in Saskatchewan.

"Our message to Minister Strahl was that we need a champion at the federal cabinet and he indicated a willingness to take on that responsibility," Saskatchewan Ethanol Development Council President Lionel Labelle said. "Our second message was that a decision to move forward is critical and time is of the essence."

"This is a huge opportunity for Saskatchewan producers to participate in the value-added chain," Saskatchewan Biodiesel Development Task Force co-chair Judie Dyck said. "Minister Strahl assured us that producer participation would be a key component of a national biofuels strategy and that Saskatchewan would be a key player. We also want a renewable fuel standard for biodiesel of two per cent, separate from the ethanol mandate."

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For More Information, Contact:

Scott Brown Regional Economic and Co-operative Development Regina Phone: (306) 787-4031

Tyler McMurchy Media Services Ottawa Cell: (306) 539-1902