Canada Proposes Plan for Altfuels; Sets 2% Biodiesel Target

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anadian officials are proposing a C$345-million program requiring biofuel content of 5% in gasoline by 2010 and 2% in diesel fuel and heating oil by 2012, the Associated Press reported.

The package includes C$200 million to subsidize new factories to produce ethanol, biodiesel and other biofuels, and $145 million for research and development, AP reported, citing Canadian officials.

Environment Minister Rona Ambrose said the plan will cut greenhouse gas emissions by about 4.4 tons per year, equivalent to taking a million vehicles off the road, AP reported.



Biofuels are produced from organic materials such as wheat, canola and soy.

The ruling Conservative government has a minority in Canada’s Parliament and would need opposition parties to vote in favor of legislation that would include the targets, Reuters reported.

The regulations could take at least two years to develop, and the government plans consultations and studies through 2007, Reuters said.