$500M Fund Launched to Support Next-Generation Renewable Fuels



    CALGARY, Sept. 12 /CNW/ - The future of renewable fuels in Canada took a
big step forward today with the launch of the NextGen Biofuels Fund(TM). The
new fund, with $500 million in funding provided by the Government of Canada,
will be managed by Sustainable Development Technology Canada (SDTC).
    "The NextGen Biofuels Fund will jumpstart the development and production
of the next generation of renewable fuels in Canada," said SDTC Chairman James
M. Stanford. "This Fund will aim to take advantage of the abundance of
suitable biomass materials available in Canada by funding large-scale
demonstration facilities and encouraging the growth and retention of
home-grown technologies and expertise in Canada."
    The NextGen Biofuels Fund will support up to 40%, of eligible project
costs for the establishment of first-of-kind large demonstration-scale
facilities for the production of next-generation renewable fuels. The
contribution will be repayable based on free cash flow over a period of
10 years after project completion.
    The NextGen Biofuels Fund is now open for applications. Applicants are
able to submit applications at any time during the year. To be eligible, a
project must:

    
    -   be a first-of-kind facility that primarily produces a next-generation
        renewable fuel at large demonstration-scale;
    -   be located in Canada;
    -   use feedstocks that are or could be representative of Canadian
        biomass; and,
    -   have demonstrated their technology at the pre-commercial pilot scale.
    

    "Next-generation biofuels technologies have the potential to generate
even greater environmental benefits," said the Honourable Gary Lunn, Minister
of Natural Resources. "The biofuel strategy of Canada's New Government is a
double win - good for farmers and good for the environment."
    Next-generation renewable fuels are derived from non-traditional
renewable feedstocks, such as fast-growing grasses, agricultural residues and
forest biomass, and produced through the use of non-conventional conversion
technologies.
    Canada is well-positioned to capitalize on next-generation renewable
fuels. In Canada, there is an abundance of cellulose-based feedstocks, which
have an energy content that is significantly higher than conventional biofuel
feedstocks. Such cellulosic feedstocks consist largely of materials that are
currently considered waste, can be grown on low-grade soil, and have greater
potential for co-products.
    "Producing the large-scale volumes of NextGen biofuels that are needed to
gain market traction will provide superior environmental benefits and
alternate sources of revenue for those in the agriculture, forestry, and waste
management sectors," said Vicky J. Sharpe, President and CEO, SDTC. "In
addition, next-generation biofuels are made from cellulose, rather than edible
starch."

    SDTC is an arm's-length foundation which has received $1.05 billion from
the Government of Canada as part of its commitment to create a healthy
environment and a high quality of life for all Canadians. SDTC operates two
funds aimed at the development and demonstration of innovative technological
solutions. The $550 million SD Tech Fund supports projects that address
climate change, air quality, clean water, and clean soil. The $500 million
NextGen Biofuels Fund supports the establishment of first-of-kind large
demonstration-scale facilities for the production of next-generation renewable
fuels. SDTC operates as a not-for-profit corporation and has been working with
the public and private sector including industry, academia, non-governmental
organizations (NGOs), the financial community, and all levels of government to
achieve this mandate.




For further information:

For further information: Media Relations: Patrice Breton, Director,
Communications, Sustainable Development Technology Canada, Tel: (613) 234-6313
ext. 295, media@sdtc.ca; Application Process: Manager, Applications,
Sustainable Development Technology Canada, Tel: (613) 234-6313 ext. 250,
nextgenapplications@sdtc.ca

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SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA

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