PROVINCE CALLS FOR ACTION ON NATIONAL RENEWABLE FUELS STRATEGY

Released on November 20, 2006

A delegation led by Deputy Premier and Regional Economic and Co-operative Development Minister Clay Serby is heading to Ottawa tomorrow to discuss Saskatchewan's role in the future of Canada's renewable fuel industry with federal Environment Minister Rona Ambrose.

"We are calling on Minister Ambrose to fulfil her Government's commitment to have a meeting of federal, provincial and territorial governments to finalize Canada's renewable fuels development package before the end of November 2006," Serby said. "We will again offer Saskatchewan as a host location."

Saskatchewan will continue to push for a 10 per cent standard by 2010, for the federal government to separate ethanol from biodiesel and create separate mandates for each fuel. 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 create further markets for Saskatchewan's oilseed producers and crushing facilities, stimulate the rural economy and help make life better for Saskatchewan families," Serby said.

The delegation is calling on the federal government to ensure primary producer and rural community-based participation in renewable fuel projects, which would allow local producers to choose their own production processes, manage the selling of their products and benefit from the greater returns on investment in their communities.

"Renewable fuels must benefit Canadian farmers," Tisdale Ethanol Development Group chief business development officer James Leier said. "We want to see a commitment to a requirement that 25 per cent of all total renewable fuel produced in Canada will come from facilities owned by agricultural producers."

Saskatchewan also looks forward to establishing itself as a renewable fuels centre of excellence. The Province was the first in Canada to mandate the use of ethanol and has four renewable fuel facilities in operation.

"In addition to being a major producer of raw materials, Saskatchewan has also been building its expertise in renewable fuels," University of Saskatchewan College of Agriculture and Bioresources Dean Dr. Ernie Barber said. "Ongoing work at our universities, Innovation Place, the Petroleum Technology Research Centre, the Saskatchewan Research Council and within industry has increased our capacity for biofuel research and is securing our position as a major player in the emerging global renewable fuel market."

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For More Information, Contact:

Donna Rehirchuk Regional Economic and Co-operative Development Regina Phone: 306-787-2359	James Leier Tisdale Ethanol Development Group Tisdale Phone: 306-873-2605
Dr. Ernie Barber U of S College of Agriculture and Bioresources Saskatoon Phone: 306-966-4050