Future Fuels Initiative

The Future Fuels Initiative renews the National Biomass Ethanol Program (NBEP) to help overcome lender resistance to investing in ethanol plants because of uncertainty about excise tax policy. The NBEP provides for $140 million in contingent loan guarantees to encourage ficing for new plants that produce ethanol from biomass such as plant fibre, corn and other grains. The loan guarantee programme would come into effect only if all or part of the excise gasoline tax on ethanol were imposed before December 31, 2010. The Future Fuels Initiative also adds $3 million over five years to provide information to retail consumers. It provides for activities such as public education on fuel ethanol, analysis of fuel ethanol markets and producer economics and provides a liaison with provinces/territories and industries that are interested in ethanol plant expansion. The Future Fuels Initiative aims to boost Canadas annual ethanol production and use by four times, an increase of 750 million litres. Such growth would mean that 25 percent of Canadas total gasoline supply would contain 10 percent ethanol. The program is jointly delivered by Natural Resources Canada and Agriculture and Agri-Food Canada.

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