|Policy Status||In force|
|Date Announced||5 July 2007|
|Date Effective||1 April 2008|
|Agency||•Natural Resources Canada|
|Funding||Budget 2007: CAD1.5 billion|
|Related Policies||Government of Canada Renewable Fuels Strategy|
|Stated Objective||•Climate Change Mitigation
•Biofuels for Transport
|Description||The ecoENERGY for Biofuels programme supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. The programme provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada.
Administered by Natural Resources Canada, the ecoENERGY for Biofuels program runs from April 1, 2008 to March 31, 2017, and will invest up to CAD1.5 billion over nine years in support of biofuels production in Canada.
The programme makes investment in production plants and facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices. ecoENERGY for Biofuels provides directly to producers of renewable fuels variable operating incentives aimed at helping industry reach up to a rate of return of 20 percent. The incentive rates are variable and depend on market conditions and average industry profitability. When market conditions result in high industry profitability, a lower incentive will be paid. When market conditions are poor (e.g., high feedstock cost, low fuel price), a higher incentive will be paid.
For the first three years, incentive rates will be up to CAD 0.10/litre (L) for renewable alternatives to gasoline and up to CAD 0.20/L for renewable alternatives to diesel. After three years these maximum rates will decline.