Agriculture and Agri-Food Canada’s Biofuels Programs
Agricultural Co-operative Development Initiative Conference March 8, 2007
Policy Context
• Canada’s New Government committed to 5% renewable content in gasoline by 2010 and 2% biodiesel by 2012.
– Will require approximately 2.8 billion litres of renewable fuel
• Renewable fuels can offer environmental benefits, including reduced greenhouse gas emissions. • Renewable fuels can help to diversify Canada’s energy mix. • Domestic production of renewable fuels can help create new marketing opportunities for Canadian grains and oilseeds. • Renewable fuels can boost rural economy and create jobs in agricultural communities.
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Farmer Participation in Biofuels
Canada’s New Government believes that it is important for producers to have the opportunity to participate in the biofuels opportunity.
- Capturing marketing opportunities for new value-added products - Creation of rural wealth - Deepening connections in value-chain - Promoting the agricultural industry’s innovative capacity and innovative solutions
Current challenges for producers:
- Developing feasibility and business plans for biofuels facilities - Forming the necessary capital base to construct new or expand existing biofuels facilities that use agricultural feedstocks as inputs - Accessing resources to develop and commercialize new products and technologies
Agriculture and Agri-Food Canda (AAFC) has a suite of programs that equip the sector, including producers, to take advantage of emerging opportunities created by the bioeconomy.
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AAFC’s Innovation Program Linkages
for illustrative purposes only
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INNOVATION CHAIN Basic Research Applied Research Prototype Development Demonstration Production Marketing
COMMERCIALIZATION MODEL - STAGES 1-Investigation 2-Feasibility 3-Development 4-Introduction 5-Growth 6- Maturity
AAFC’s S&I Strategy
ACAAF – advances ideas that lead to better products, processes and technologies BOPI – supports business plans & feasibility studies to create & expand biofuels production capacity Agri-Opportunities – supports commercialization of new products, processes and services CFAP – for new and expanding biofuels facilities
Universities ABIP – create networks to conduct research in support of agricultural bioproducts NSERC AIP – supports identification, development and adoption of innovation-based products BP – supports “broker” organizations to accelerate new innovation opportunities CDI – supports development of co-ops and innovative ways of using the co-op model Other CRP – supports innovative approaches to rural development Matching Investment Initiative PAVE – supports farmers to develop plans for value-added projects Other FPT Programs
CAFI – works with industry to market newly developed products internationally
Global Science Community
ACRONYMS ABIP – Agricultural Bioproducts Innovation Program ACAAF – Advancing Canadian Agriculture and Agri-Food BOPI – Biofuels Opportunities for Producers Initiative AIP – Agri-Innovation Program BP – Broker Program CAFI – Canadian Agriculture and Food International CRP – Canadian Rural Partnership CDI – Co-operatives Development Initiative Agri-Opportunities PAVE – Planning and Assessment for Value-Added Enterprises CFAP- Capital Formation Assistance Program Will link to new & existing portfolio, other federal & provincial/territorial programs to confirm gaps
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AAFC’s Suite of Biofuels and Bioproducts Programs
• Advancing Canadian Agriculture and Agri-Food (ACAAF):
• $243 million ending in March 2009 to position the sector at the leading edge and expand capacity to respond to emerging issues and capture market opportunities. • Delivered nationally by AAFC and regionally through ACAAF Regional Councils. • Program provides an opportunity to investigate and develop new, nontransportation-related biofuels.
Biofuels Opportunities for Producers Initiatives (BOPI):
• $10 million to assist farmers and rural communities hire technical, financial, and business planning advisors to develop business proposals and undertake feasibility and other studies to support biofuels production capacity. • Extra $10 million announced in March 2007. • Delivered regionally through ACAAF Regional Councils. • Co-operatives benefit through Co-operative Development Initiative (CDI).
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AAFC’s Suite of Biofuels and Bioproducts Programs– cont.
• Capital Formation Assistance Program (CFAP):
• $200 million over four years in repayable contributions to support the construction of new or expanded transportation biofuels production facilities that use agricultural feedstock. • Opportunity for primary producers, including new co-operatives, to diversify economic base and invest in the production of biofuels. • Program contributions are based on annual biofuel production capacity and level of farmer contribution to project costs. • Policy and funding announced December 20, 2006. Program details expected in early Spring 2007.
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AAFC’s Suite of Biofuels and Bioproducts Programs– cont.
• Agricultural Bioproducts Innovation Program (ABIP):
• Up to $145 million over 5 years to promote research, development, technology transfer and commercialization activity in agricultural bioproducts in Canada through research networks. • Program expected to improve the transfer of knowledge, technology and expertise to organizations that can commercialize innovations.
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For more information on AAFC’s Biofuels Programs, Visit: www.agr.gc.ca
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Questions?
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