BEIJING - China is unexpectedly emerging as a major exporter of ethanol as record crude oil prices and a U.S. deficit in the biofuel have pushed up its international price, triggering an investment boom.

Industry officials said China's 2006 exports of ethanol, or ethyl alcohol made largely from corn or cassava, were set to exceed 500,000 tons.

Shipments may reach 900,000 tons, some traders say. It had virtually no ethanol exports for fuel last year.

Most of the ethanol cargoes go directly or indirectly to the United States because of a switch this year to use ethanol as an additive for cleaner gasoline. Some cargoes are dehydrated in Caribbean countries for use in the United States, helped by favorable taxes.

"We predict it may reach 900,000 tons," said a trader at an international house, referring to exports in 2006. "But due to recent softening in the international market, maybe we will revise the number down, possibly by around 100,000 tons."

However, not many are convinced that China can maintain a competitive edge for fuel ethanol exports in the future, especially if it has to keep importing cassava and since there is a building boom of ethanol plants in the United States.

China is the world's third-largest ethanol producer, behind Brazil and the United States, but in the past has used most of its output domestically, largely for use in alcohol or chemicals but increasingly as a gasoline blend in agricultural provinces.

For many, Chinese exports of fuel ethanol came as a surprise, as there were only four ethanol fuel plants until 2005.

The product is heavily subsidized by Beijing, which is eager to develop alternative fuels to cut China's dependence on imported oil.

Officials said a window of opportunity had emerged because of a surge in global ethanol prices, spurred in part by a U.S. shortfall estimated at two million tons this year. Prices climbed above $5 a gallon in May before receding toward $2.50.

Coupled with high oil prices, this has encouraged small producers who process ethanol for use as food to dehydrate it for use as fuel, they said. Many have expanded capacity and built new plants.

Data and details of the trade are patchy, partly because it is difficult to distinguish between fuel ethanol and other alcohols.

But an official from China Songyuan Ji'an Biochemical Sales, based in the country's top corn-producing province of Jilin in the northeast, said it alone would export 300,000 tons of ethanol - all of its output - this year.

Customs data showed exports of ethanol had risen 336 percent in the first seven months of this year from a year earlier.

The officials said ethanol plants were also sprouting across the country, especially with the National Development and Reform Commission, the country's top planning body, predicting Chinese consumption of ethanol as fuel would reach six million tons by 2020.

It was unclear how much ethanol China was producing this year, in addition to 1.02 million tons by the four government-sponsored plants in the provinces of Jilin, Henan, Heilongjiang and Henan. Ji'an is also expanding its capacity to 450,000 tons by the end of 2006.

Yet the Ji'an official said China's total alcohol capacity, including fuel ethanol, would climb by three million tons to reach 10 million in 2006. It rose by two million tons last year.

"A lot of plants are being built," said a trader, adding that some of the new plants were focused on the export business.

Another trader at a Beijing-based international house estimated there were now a few thousand producers.

To avoid undermining the country's food security, Beijing is encouraging a shift in feedstocks away from grains, like corn, to non-grain crops, like cassava, which is also known as tapioca.

In a sign of rising fuel ethanol production, one cassava trader said China's cassava imports were heading toward 4.4 million tons in 2006, up about 36 percent from a year earlier.

China National Cereals, Oils & Foodstuffs Import & Export, the country's top state-owned trader, is also building an ethanol plant with production capacity of 200,000 tons a year in the southern region of Guangxi, China's biggest cassava-producing province.

State media have said it was part of a plan by the Guangxi government to build annual production capacity of a million tons.

"You have to think if this export will last," said the second trader. "In the United States, they have lots of projects under way. The demand gap will narrow significantly next year."

Copyright © 2006 the International Herald Tribune

WASHINGTON (Reuters) - Biotechnology might be used to boost the energy output of crops used in making renewable fuels, a U.S. Agriculture Department advisory committee said on Wednesday, noting the sharp rise in demand for the fuels.

The rapidly growing U.S. fuel ethanol industry has the capacity to distill 4.8 billion gallons of the motor fuel this year, mostly from corn (maize). Federal law sets a target of using 7.5 billion gallons (28.4 billion liters) of renewable fuels annually by 2012.

"Crops with energy-specific traits may be developed to help meet the growing demands for renewable alternative fuels," said USDA's Advisory Committee on Biotechnology and 21st Century Agriculture in a report looking at possible paths for genetically modified crops in the coming decade.

It said genetic engineering could be used to add traits to food crops, such as corn and soybeans, and nonfood crops, like grasses and trees, to enhance energy production.

"The large-scale production of such energy crops could have tremendous implications for U.S. agricultural systems," said the report. "Bioenergy uses will be visible to consumers and their scale alone could raise concerns for them, although meeting bioenergy needs using genetically engineered crops could be seen by consumers as a benefit as well."
© Reuters 2006

Plutonic to become BC's largest independent renewable power developer

VANCOUVER, BRITISH COLUMBIA AND STAMFORD, CONNECTICUT--- Plutonic Power Corporation announced August 30, 2006 that it has granted a Canadian affiliate of GE Energy Financial Services (NYSE:GE) the exclusive right to provide CAN$100 million of project equity as well as lead a CAN $400 million debt financing for construction of the East Toba/Montrose Creek run-of-river hydroelectric project located 190 kilometres northwest of Vancouver.

In return for the CAN $100 million equity investment, Plutonic will provide GE with a 49% equity and 60% economic interest in the East Toba/Montrose Project. Following a 35 year term, the economic interests of GE will convert to 49%. GE will also have the right to match any equity investment offer that Plutonic receives for a second hydroelectric project, Rainy River.

The 196 megawatt East Toba River and Montrose Creek Project is located at the headwaters of the Toba Inlet north of Powell River in British Columbia and is expected to produce enough electricity to meet the annual energy needs of over 75,000 homes. The 15 MW Rainy River Project is located in Howe Sound, 10 km north of Vancouver, and could produce enough electricity for over 5,000 homes.

Another GE Energy Financial Services affiliate has provided Plutonic with $2.5 million of credit support for the East Toba River/Montrose Creek project. In consideration of the credit support, Plutonic has issued to the Canadian affiliate of GE Energy Financial Services 375,000 two-year common share purchase warrants with an exercise price of $2.50 per share (the "Warrants").

"This agreement with Plutonic helps pave the way for us to achieve our goal of investing more than $3 billion in renewable energy globally by 2008," said Kevin Walsh, Managing Director and leader of GE Energy Financial Services' renewable energy team. "In addition, this project aligns nicely with GE's ecomagination initiative to expand the company's cleaner energy products and reduce greenhouse gas emissions, and it reinforces our portfolio in Canada."

The credit support was issued to BC Hydro as part of performance security aggregating $12.66 million, required to back 35-year Energy Purchase Agreements for the East Toba/Montrose Creek and Rainy River projects. To supplement the credit support and its own treasury, Plutonic has issued debt instruments totaling $9.70 million with a private group of investors (the "Investors"). The Investors will be issued 150,000 Warrants per million dollars received. GE and the Investors will be paid an annual interest rate of 10% for the first 60-day period and 12% thereafter.

"The agreement with GE Energy Financial Services provides Plutonic with a very strong partner," said Donald McInnes, President of Plutonic Power Corporation. "It will allow us to focus on the execution of a fixed-price engineering, procurement and construction contract, and finalize permitting and First Nation relationships. The agreement also paves the way to complete a debt package for construction financing of the East Toba/Montrose Creek project as well as to work towards a debt and equity package for Rainy River." Plutonic expects to achieve these milestones this year, allowing for construction to begin in early 2007.

The East Toba River/Montrose Creek and Rainy River projects require an estimated $550 million in capital (including interest) and will create more than 300 full-time construction jobs over three years. This represents the largest single private sector renewable energy investment in the history of British Columbia, generating enough green electricity to meet the needs of more than 80,000 homes, along with $60 million - $70 million annually in revenue.

"Plutonic was the largest capacity bidder in BC Hydro's 2006 request for proposals for power projects in the province. With the support of financial partners such as GE, we expect to continue to aggressively develop our next generation of projects for future BC Hydro tenders," said McInnes.

Plutonic Power is committed to working cooperatively with First Nations in their traditional territories to provide jobs, training and economic benefits not just in the construction phase, but also over the lifetime of these projects. Discussions with First Nations concerning the development of the projects are ongoing.

The production of crude oil and equivalent hydrocarbons rose 1.2% in June from the same period last year. This increase was a result of recovered synthetic production levels after a fire at a major oil refinery last year. The production of crude oil and equivalent hydrocarbons declined 3.8% in June from the previous month. This was the result of declining Alberta synthetic crude production in June, and a major turnaround at an oil sands field in Alberta.

Crude oil exports, which accounted for 70.6% of total production, advanced 8.1% over the same month last year. Since the beginning of 2006, exports have grown 13.0% compared to the first six months last year. In June, exports of crude oil mostly went to the Chicago refining area.

Marketable natural gas production grew 3.7% in June over the same period last year. Domestic sales of natural gas edged up 0.3% compared to the same period last year. A 9.7% decline in residential sales due to warmer temperatures was offset by higher sales to the industrial sector (+2.9%), according to the June Natural gas sales release in The Daily of August 24, 2006.

Exports of natural gas, which made up 62.2% of marketable natural gas, increased 8.9% over June 2005.

Preliminary data are available on CANSIM at the national level to June 2006 inclusive. At the national and provincial level, detailed information is available for crude oil (126-0001) up to April 2006 inclusive, and for natural gas (131-0001) up to January 2006 inclusive.

OAKVILLE, ON - Halton Regional Chairman Joyce Savoline has issued a statement to correct the ongoing media coverage regarding Halton's proposed Energy from Waste Facility:

"The primary purpose of exploring options for an EFW, which we announced August 2nd, is to ensure Halton Region continues to be a leader in managing its own waste. The media coverage in the Toronto Star regarding Halton's proposed Energy from Waste facility and Toronto waste is a bit of a stretch. The issue is a Halton focused issue - not a Toronto issue.

The need to manage our current and future waste disposal is becoming increasingly important. Regional Council is moving forward on the direction of the Joint Board Decision established in 1989 to implement an Energy from Waste (EFW) facility at the Halton Waste Management Site. The development of a business case will set out the options for the facility.

While we are doing a business case that looks at our own capacity to manage Halton's waste, it is our responsibility and in our interest, given the waste problem and energy crisis in the Province, to look further and explore whether Halton could handle waste for production of energy from other municipalities. Through the business case, ranges of facility sizes will be considered - the largest being up to 1.2 million tonnes. While our primary focus is not on the larger facility, it is responsible to consider all options. Any decision would be made in the best interest of the Halton community.

An EFW facility in Halton will be a safe, clean, green, state-of-the-art facility using world class technology. We will look in great detail at the range of technologies available and come up with the one that is best for the environment and best for the Halton community.

I want to specifically clarify that the EFW will not eliminate the need for Halton to achieve or improve on the 60% diversion rate from the landfill set out by the Minister of the Environment. Only materials that cannot be re-used, reduced, recycled or composted will be considered targeted for the EFW. The 3RS will continue to play a major part of the overall waste strategy for Halton.

Halton Region has a responsibility and an obligation to continue to take a leadership position and find solutions to manage its own waste and to become more self-sufficient on this front. By taking this leadership position, Halton Region is demonstrating to communities throughout the Province that there are solutions to ensure self-sufficiency in managing waste."

KINGSTON - Fuel Cell Technologies Ltd. ("FCTL"), a leading manufacturer of solid oxide fuel cell (SOFCs) systems reports on the quarter ended June 30, 2006, with financial results, management discussion and analysis, and highlights of corporate activity. FCTL Directors approved the financial statements during the meeting of the board on August 18, 2006. These financial statements are available on SEDAR and on FCT's web site.

Operations Highlights

On April 19, 2006 four of FCTL's solid oxide fuel cell systems ("SOFC") systems were commissioned at the opening of the solid oxide fuel cell facility at the University of Toronto at Mississauga (UTM). This marked Canada's first installation of solid oxide fuel cells in a university student residence, as well as the world's first multi-unit SOFC installation. The systems have accumulated over 6,300 hours of operation, and generated 25 MW of electricity along with 18 MW of heat. The output from these systems has been used to heat and power 12 townhouse units in the UTM student residence complex. FCTL delivered two Balance of Plants ("BOPs") to Siemens Power Generation Inc. ("Siemens") as part of a contract signed in January and expects that it will deliver the remaining three BOPs in the third quarter.

The statutory Arrangement between Madison and Fuel Cell Technologies Corporation ("FCTC") was completed on April 1, 2006 following fulfillment of the conditions of closing. The Arrangement and three supporting resolutions with respect to the Arrangement were previously approved by an overwhelming majority of shareholders and optionholders at a Special Meeting held on March 22, 2006, after which FCTC obtained Court approval of the Arrangement on March 23, 2006.

As a result of the transaction, FCTC's operating subsidiary sold all of its operating assets and business, including Madison's investment of $1,550,000, to FCTL in exchange for assumption of specified liabilities. FCTL is now continuing the solid oxide fuel cell business with the same management and employees, owned by the same shareholders, but with a cash influx of $1.55 million to go forward. FCTC has changed its name to MP Western Properties Inc., and neither Madison nor MP Western Properties Inc. retains any interest in FCTL.

FCTL is now treated as a reporting issuer in Ontario, and may be treated as a reporting issuer in the other jurisdictions in Canada with substantially the same regulatory provisions as those in Ontario.

The proceeds of the transaction with Madison have provided the company with additional funds to continue the fuel cell business and meet existing contractual obligations. In order to commercialize the 5kW system additional funding is necessary. Over the last year, Management, with the support of the Board, has spent considerable effort evaluating the business strategy and actions to date. The outcome is a consensus that FCTL's chances of success are maximized by focusing on FCTL's core strengths, which include control system and balance of plant expertise, system integration and alliance management.

FCTL's systems currently incorporate Siemens Power Generation's industry leading, innovative tubular cell stacks that have demonstrated unsurpassed stack life and stability. Though considered by customers to be "best in class", FCTL's systems remain expensive, and the current system is not a commercially viable product in its current state.

New cell stacks and generators are now being developed by many companies. The probability that in 2-3 years there will be low cost generators available that would allow the production and sales of systems that incorporate these generators at a price that will meet consumer price expectations is increasing steadily. In order to accommodate such generators FCTL is extending the flexibility of its Balance of Plant (BOP) to develop a more generic system capable of integration with different generators with only minimum modifications required. <<

FCTL's strategy is based on the following key tenets:

- there is a large and growing market for small scale SOFCs in stationary applications;

- FCTL's leadership in the development of SOFCs can be parlayed into brand equity to protect its position in the supply chain;

- FCTL is well positioned to take advantage of its significant BOP and control systems expertise; and

- the company will consolidate and protect its existing intellectual property to further secure its leadership in the SOFC market. >>

During the second quarter, discussions with several leading stack/generator suppliers have commenced with a view towards putting in place supply agreements that would provide FCTL the option of incorporating these generators into FCTL systems should they meet performance and price criteria. Management believes that this strategy will allow FCTL to leverage its leadership in SOFC systems to capture a significant market share of the stationary power market.

Summary of Financial Results

Total revenue for the three months and six months ended June 30, 2006 was $643,573 and $893,539 respectively. Second quarter revenue includes the revenue from the two BOPs delivered to Siemens as well as the majority of the revenue from the Data Package Agreement signed with Siemens in January 2006 and does not reflect the shipments to the Hydrogen Village site at UTM. The revenue from this project will not be recognized until the entire project is largely completed, anticipated for later this year.

Expenses for the three months ended June 30, 2006 were $444,773, comprised mainly of general and administrative expenses of $320,035 and research and development expenses of $74,423. A foreign exchange gain of $32,939 was realized in the quarter.

FCTL's current assets as of June 30, 2006 were $3,227,101, comprised of $311,640 of accounts receivable, a cash balance of $861,341 and inventories of $1,750,501.

During the quarter ending June 30, 2006, there was a net cash inflow of $811,487 as a result of the cash acquired through the Arrangement. The monthly average net cash utilization during the quarter ended June 30, 2006 was $105,480 per month.

FCTL's cash balance raises substantial doubt about the Company's ability to continue as a going concern. In order to continue operations the Company must obtain additional financing through the issue of shares and/or from loans, and management continues to pursue various avenues with the objective of providing funds to the business.

Application filed with CNSC to help company evaluate new build, refurbishment options

TIVERTON - Bruce Power has filed an application with the Canadian Nuclear Safety Commission (CNSC) to prepare a site for the potential construction of new reactors at its Bruce County facility.

In doing so, the company entered the next phase of a wide-ranging study that began in January of 2004, when it announced it would consider the feasibility of restarting Bruce A Units 1 and 2, refurbishing its four Bruce B reactors when needed and potentially building Canada's first new reactors in a generation.

Since then, Bruce Power has:

<< - Conducted a successful environmental assessment and launched a multi-billion dollar project to restart Units 1 and 2 and return 1,500 MW of electricity to Ontario by the end of the decade.

- Invested heavily in the long-term future of Bruce B by installing new turbine rotors and developing new fuelling techniques that have already resulted in power increases on two of the station's four units.

- Introduced a new fuel design at Bruce B that will enhance safety margins. Upon the successful conclusion of another environmental assessment, four new fuel bundles were loaded into Unit 7 last month and will remain in the reactor for approximately one year to test their design. >>

"We have done a lot of analysis work over the last two years, but to better define our options we now have to embark upon a more formal evaluation process," said Duncan Hawthorne, Bruce Power's President and Chief Executive Officer.

Bruce Power understands any application to build new reactors will be subject to review under the Canadian Environmental Assessment Act and Hawthorne anticipates an environmental assessment could take up to three years to complete. Having filed its initial site license application, Bruce Power will now await further direction from the CNSC on the next steps in the regulatory process.

As Canada's only private nuclear generating company, Bruce Power currently operates six units and is in the process of restarting two more at its 2,300-acre site, which is already the source of more than 20 per cent of Ontario's electricity.

However, all four Bruce B units and one at Bruce A will need to be refurbished or replaced between 2015 and 2020. Since those units currently generate nearly 4,000 megawatts (MW) of Ontario's electricity, Bruce Power will consider the impacts of replacing that same amount of power during its extensive environmental assessment and business case analysis.

During that time, the company will determine whether it makes economic sense to refurbish its existing units when required, replace them with new reactors or augment their output by building a third generating station at the Bruce Power site. When first developed more than 40 years ago, the site was configured to support at least three multi-unit generating stations.

Hawthorne described today's announcement as being consistent with Ontario's current supply-mix plans. Earlier this year, the province directed the Ontario Power Authority (OPA) to proceed with a 20-year plan that includes 14,000 MW of installed nuclear capacity.

"Since more than 4,700 MW of that now comes from the Bruce Power site, and more than 6,200 MW will come from us following the restart of Units 1 and 2, it's entirely reasonable for us to consider all options to meet that requirement," Hawthorne said.

As part of its directives to the OPA, the province has also said that new reactors should be built on existing sites and that decisions be made based on the best technology offered at the best price to Ontario ratepayers. Accordingly, Bruce Power will consider the potential safety, environmental, social and commercial impacts of several reactor designs. Currently, all of Bruce Power's reactors are Canadian-designed CANDU units.

"Embarking on a technology-neutral assessment of next generation reactors gives us the best possible opportunity to compare and contrast what the market has to offer," Hawthorne said. "Having said that, Bruce Power is an all-Canadian company and the impact on Canadian jobs will be a big part of our decision-making process. I would encourage all vendors, both foreign and domestic, to consider this when bringing their designs to us for consideration."

While an ultimate decision on new build is still a few years away, Hawthorne said involving the public in that decision will be a vital part of the process.

"While I believe we have many of the attributes that make our site a good location for new build, it's really important, given the magnitude of this decision, that we go through the formal process to confirm that is the case," Hawthorne said.

Accordingly, Bruce Power will discuss its plan further with area residents during a Community Open House at its Visitors' Centre on Wednesday, Aug. 30 at 7 p.m. The company will also conduct a series of Open Houses in local communities throughout September.

Given gasoline-oriented Japan's limited diesel consumption and lack of incentives, however, the take-up from consumers and refiners is likely to be tepid at first, officials conceded.

"The legislation is expected to be passed by the end of this year, and the law will become effective by the end of this fiscal year (to March 2007)," an official at the Agency for Natural Resources and Energy, a unit of the trade ministry, told Reuters.

Japan now allows oil companies to blend about 3 percent of ethanol, another biofuel produced from crops such as sugar or corn, into gasoline, the motor fuel of choice for most drivers.

It does not have rules to regulate biodiesel quality, deterring potential retailers from offering it and limiting its use to voluntary efforts by some local municipalities using waste vegetable oil for public transport, officials say.

Tokyo will not require retailers or refiners to blend a minimum percentage of pure biodiesel into their motor fuel, as some nations and governments have done. But it may consider tax incentives in future to encourage consumers to use biofuels, said the official, who asked not to be named.

The government will also offer financial support for companies that are developing ethanol blending technologies.

Faced with opposition from its powerful refiners and limited domestic crops, Japan has been slow to join the biofuel demand boom, which got a boost this year when President Bush made it a cornerstone of his energy policy.

Oil prices that stay stubbornly above $70 a barrel have also made alternatives more economic, while a global push for cleaner fuels has aided momentum toward the cleaner fuel.

But for the moment, no bio-transportation fuel -- diesel or gasoline -- is sold at pumps at Japanese gas stations at all.

Malaysian Golden Hope Plantations Bhd.'s first export cargo of biofuel is due to be shipped to Japan this month, although Europe is expected to be the top market.

High hopes, no incentives

Japan hopes to replace about 500,000 kiloliters (3.14 million barrels) of transportation fuels with bio-ethanol a year by 2010, another official said, but did not say how it would achieve that goal, which is less than 0.2 percent of Japan's total oil demand.

"Writing up the specifications of biodiesel can define the standard quality of the fuel and help introduce the industry and consumers to biodiesel," the official said.

Refiners feared that bio-blended fuels could damage cars and oil production systems, although proponents say that as much as 10 to 20 percent of biofuel is safe in standard engines.

There are signs they are coming around, if slowly.

Japan's largest refiner Nippon Oil Corp. is working with auto giant Toyota Motor Corp. to develop commercial biofuel, but is not expecting immediate results.

"We do not have a fixed timetable but the industry as a whole targets at 2010," a spokesman for Nippon Oil said.

The Petroleum Association of Japan, the industry's lobby, said earlier this year it hoped a gasoline blended with 3 percent of ethyl tertiary butyl ether (bio-ETBE) would meet about 20 percent of the country's total demand by 2010.

Diesel is mostly used to fuel trucks and buses in Japan, with demand totaling 37.34 million kl (643,000 barrels per day) last year. Gasoline demand was 61.6 million kl (1.1 million bpd).

While countries like Thailand and the United States enjoy double benefits from biofuel -- curbing oil imports and lifting rural incomes -- Japan is unable to feed itself, meaning it must still relay on crops in Malaysia or Brazil to provide it with most of its imported biodiesel or ethanol.

But officials see limited demand for the time being.

"I would expect to start with blending used vegetable oils like some local governments have been doing," said one official.

Crude oil and equivalent production declined 2.0% in 2005, primarily on lower output from the conventional sector (-3.0%). Production in the non-conventional sector edged down 0.5%, as a result of unplanned interruptions in synthetic crude oil production. On the other hand, natural gas marketable production rose by 1.9% in 2005.

The value of crude oil and equivalent hydrocarbons produced in 2005 totalled an estimated $49.2 billion, up 20.8% from $40.7 billion in 2004. This jump was attributable exclusively to sustained increases in wellhead prices in 2005. The value of natural gas marketable production was estimated at $51.1 billion in 2005, up 34.0% from 2004.

By Peter Love - Ontario's Chief Energy Conservation Officer

The August 14th 2003 Blackout has emerged as one of the most powerful instruments shaping our attitudes toward energy conservation in Ontario.

Just before 4:11 p.m. that day, the failure of three transmission lines in northern Ohio triggered a cascade of shutdowns at more than 100 generating stations throughout eight U.S. states and Ontario. Just nine seconds later, 50 million had the plugged pulled.

Wherever I speak about energy conservation, Ontarian's remind me about how this event taught them how much our everyday activities rely on a steady, secure supply of electricity, delivered safely into our homes, schools and businesses.

Ironically, the Blackout, caused by a natural event -- a falling tree -- not over consumption of electricity, reminded each of us what life would be like without electricity.

The summer of 2006 has given us even more opportunities to understand the importance of energy conservation when a new all-time record for electricity demand in Ontario was set on August 1st.

This year, a new phenomenon has emerged. Municipalities are accepting a Province-wide challenge to reduce energy consumption on the anniversary. This elegantly simple idea was proposed by the City of Woodstock, and is being adopted by other cities and towns such as Burlington, Guelph, London, Ottawa, Parry Sound and Owen Sound. Some communities will mark the day on Sunday and others on Monday the 14th. Go to
www.city.woodstock.on.ca to learn more.

Here are some easy ways to reduce your electricity consumption and help meet the 4% reduction target of the voluntary blackout day:
Turn up the thermostat two degrees - you will be just as comfortable. You'll save money on your air conditioning bill and decrease the demand on Ontario's power grid. Try fans instead of AC.
Let a programmable thermostat be your "energy caretaker" when you're not at home by regulating your cooling systems as needed.
Do the math…compact fluorescent bulbs are four times more efficient and last eight times as long. Use them whenever possible - even outside.
Pull the plug or turn off any lights, TVs and other appliances when they're not needed.
The Voluntary Blackout Day will try to reduce electricity use by 4%. If all municipalities in Ontario participated at this rate, Provincial demand would be cut by 845 megawatts, enough to power 680,000 homes. Whether your municipality formally marks this event is not important. Thinking twice before flipping the switch is.

"This order confirms the continuing strong relationship that has been developed between TurboSonic and the large ethanol customer and further strengthens the Company's position as a leading provider of air pollution control equipment," stated Edward Spink, TurboSonic's Chairman and CEO.

TurboSonic Technologies (www.turbosonic.com) designs and markets air pollution control technologies to industrial customers worldwide. Its products help companies in the Cement and Mineral Processing, Ethanol, Metals & Mining, Petrochemicals, Power Generation, Pulp & Paper, Waste Incineration, and Wood Products industries comfortably meet the strictest emissions regulations, improve performance, reduce operating costs and recover valuable by-products where possible.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in general economic conditions, interest rates, government regulations, and competition. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statement, see the annual report on Form 10-KSB and other documents the Company files from time to time with the Securities and Exchange Commission.

Sales of refined petroleum products totalled 8 535 100 cubic metres in June, down 1.6% from June 2005. Sales decreased in five of the seven major product groups, with heavy fuel oil sales down 22.6% or 148 400 cubic metres. Motor gasoline sales edged down 0.2% or by 6 600 cubic metres while diesel fuel oil sales rose 4.2% or by 94 400 cubic metres.

Sales of regular non-leaded gasoline edged up 0.3%, while sales for mid-grade (-6.6%) and premium (-4.1%) gasoline were down from June 2005.

Year-to-date sales of refined petroleum products at the end of June totalled 48 524 200 cubic metres, down 3.0% from the same period of 2005. Sales decreased in four of the seven major product groups, with the largest decrease in heavy fuel oil (-1 014 300 cubic metres or down 24.8%).

Preliminary domestic sales of refined petroleum products data are no longer available on CANSIM.

Definitions, data sources and methods: survey number 2150.

NIAGARA FALLS, ON - Ontario Power Generation announced that the world's largest hard rock tunnel boring machine, "Big Becky", has been fully assembled and will soon be ready to begin boring the 10.4 kilometre Niagara Tunnel. When completed the Tunnel will add more renewable electricity from Ontario Power Generation's Sir Adam Beck generating stations located at Queenston.

The Niagara Tunnel project is expected to be completed and supplying
water for the generation of more electricity by late 2009. Big Becky will bore
a tunnel 14.4 metres in diameter at a depth of up to 140 metres below the City of Niagara Falls. The tunnel will enhance the original engineering
accomplishment of the Sir Adam Beck stations by transporting water beneath the Niagara Escarpment so that this water can be used to increase the stations' electricity output.

"We're proud of this project and the contribution it will make to
Ontario's energy supply," said OPG President and CEO Jim Hankinson. "When
completed, the Niagara Tunnel will enable our Sir Adam Beck stations to
produce an additional 1.6 billion kilowatt-hours of electricity per year, or
enough for 160,000 homes."

"A clean, reliable and sustainable energy supply is key to our economic
growth - our very way of life," said Premier McGuinty. "By creating the
Niagara Tunnel, we're increasing our province's power supply, strengthening
our prosperity and building opportunity for Ontario families."
Average annual energy output from the Sir Adam Beck Complex is expected
to be increased by 14 per cent.

Ontario Power Generation Inc. is an Ontario-based electricity generation
company whose principal business is the generation and sale of electricity in
Ontario. Our focus is on the efficient production and sale of electricity from
our generation assets, while operating in a safe, open and environmentally
responsible manner.

Ontario homeowners, businesses say going green makes more 'cents' than ever

GUELPH, ON, - As oil, gas and electricity costs continue to climb with no end in sight, more Ontario homeowners and businesses are discovering that 'going green' with renewable energy solutions from Selectpower Inc. is paying off for both the environment and the bottom line.

Homeowner Brian Cowan of Puslinch, Ontario, recently installed a Selectpower geothermal heating system to heat, cool and provide hot water in his 3600-square-foot house and swimming pool. Cowan has typically paid about $1,000 a month in energy costs for his home but the switch to Selectpower will slash his bills to between $400 and $500 a month.

That represents savings of $500 to $600 every month - or $6,000 to $7,200 a year - now that Cowan has stopped using all electricity to heat and cool his house and propane to heat the pool.

"The main reason we wanted a geothermal system was to save energy," says Cowan. "Our bills were getting higher and higher. Now, as energy costs rise, we know that the payoff with a renewable energy system like this from Selectpower can only get better."

Geothermal heating and cooling systems have long been known to benefit the environment by eliminating greenhouse gas emissions produced by traditional oil and gas systems.

But what more and more Canadians are discovering - as they seek relief from consistently rising energy costs - is that today's affordable geothermal systems can dramatically reduce energy bills at the same time.

"Selectpower is helping consumers and businesses reduce their energy costs while they conserve energy," says Suzanne Wiltshire, President of Selectpower. "Today's affordable energy solutions not only help customers to conserve energy for a greener world, they also pay financial dividends as customers cut energy bills to a fraction of what they were."

Using geothermal technology in one home today eliminates greenhouse gas emissions equivalent to taking two cars off the road every year, says Wiltshire. "That's a big step but to be able to do that while generating a financial payback at the same time is remarkable - and we are doing it right now with our customers."

Geothermal technology is one of the fastest-growing applications ofrenewable energy in the world right now for heating and cooling, Wiltshireadds, and as more people seek out affordable and sustainable alternatives to increasingly costly oil and gas systems, the market will continue to soar.

"The word is spreading rapidly as more homeowners and businesses discover geothermal technology as a truly sustainable and affordable solution that literally pays for itself," Wiltshire said.

"Traditionally seen as an alternative solution, geothermal technology is
quickly turning into a mainstream solution designed to generate dramatic
benefits over the long term. We have more people calling us every day with new questions about how to put a geothermal system to work for them and for the environment," she added.

While more homeowners are choosing geothermal systems to save energy and cut costs, many others are discovering similar advantages with Selectpower's high-efficiency heating and cooling systems.

Guelph accountant Karen Mewhiney says that since upgrading her home's
furnace and central air systems last year with Selectpower technology, she has cut her home's heating, cooling and hot water bills in half - even after
increasing the size of her water heater. "My only regret is that I did not
make the switch to Selectpower sooner," says Mewhiney. "The cost savings
really add up at the end of the year."

More details on how homeowners and businesses are using Selectpower Inc. services and products today to save energy and cut costs are available online at www.selectpower.ca.

TORONTO - Ontario set a new all-time record for electricity demand of 27,005 megawatts (MW) at 5:00 p.m., exceeding the previous record of 26,160 MW set on July 13, 2005, reported Ontario's Independent Electricity System Operator (IESO).

"Today's events clearly demonstrated how all parts of the system work closely together to ensure reliability," said Paul Murphy, IESO Chief Operating Officer. "Ontario's generators and transmitters performed exceptionally well and we worked with neighbouring jurisdictions to coordinate reliable operation throughout the region. We would also like to thank those consumers who were able to respond to our request to curtail their use of electricity."

Increased generation over the past 12 months has improved Ontario's overall supply picture this summer. In addition the IESO has introduced new market mechanisms to better manage the reliability of the system including the Emergency Load Reduction Program (ELRP).

Toronto Hydro-Electric System, Hamilton Specialty Bar Corporation, St. Marys Paper Ltd., and Washington Mills Electro Minerals Corp., all participants in the ELRP, committed to reduce up to 69 MW if called upon to do so. Georgia-Pacific Canada Inc., Flakeboard Company Limited and Saint-Gobain Ceramic Material Canada Inc. are also participants in the program.

The power warning currently in effect will end at 8:00 p.m. tonight. Tomorrow, Ontario demand is forecast to peak at approximately 26,500 MW.

Unit 6 leads the way with 98 per cent capacity factor

TIVERTON - Bruce Power generated more electricity during the first half of 2006 than any time in its five-year history, increasing production by nearly 15 per cent compared to the first six months of 2005.

The company's six operating units combined to generate 17.8 terawatt hours (TWh) during the first six months of this year, an increase of 2.3 TWh from the first half of 2005. Generation during the second quarter was 8.7 TWh, up from 7.3 TWh during the second quarter of 2005. Bruce Power also continued to lead the industry in industrial safety performance, working the first half of 2006 without a single acute lost-time injury.

With planned maintenance at Bruce A earlier this year, the four Bruce B units have been extremely reliable performers, running at an average 95 per cent capacity. Unit 6 has led the way, operating at 98 per cent availability heading into what has been a hot summer of relatively high demand.

During the second quarter, Bruce Power generated revenues of $450 million, up from $393 million during the same period in 2005. The increase primarily reflects increased production, partially offset by electricity prices that have been slightly lower so far this year than in 2005.

Meanwhile, Bruce Power and its team of contractors continue to progress the $4.25 billion project to restart Bruce A Units 1 and 2 and refurbish Units 3 and 4 on time and budget. To the end of June, $645 million had been invested in the massive engineering project that will return 1,500 MW of electricity to Ontario by the end of the decade.

"To this point, I'm extremely pleased with how the restart project is coming together," said Duncan Hawthorne, Bruce Power's President and Chief Executive Officer. "Together with our team of contractors, we have met all of our regulatory milestones and are where we expected to be with our costs and schedule."

Earlier this month, the Canadian Nuclear Safety Commission accepted the company's Environmental Assessment for the restart, making Bruce Power the first nuclear utility in Canada to successfully complete an EA on a major life extension project.

With that assessment in place, the project has moved beyond the preparatory phase and into the heart of restart activities. Already, more than 800 contract workers are on site, which will ramp up to an expected peak of about 1,700 by 2007.

Construction on a new simulator to train current and future nuclear operators is well underway and the first of 16 new steam generators destined for Units 1 and 2 is expected to arrive from Babcock and Wilcox in Cambridge, Ont. in early August.

Among other recent highlights: <<

- Four demonstration bundles of an enhanced fuel design were loaded in Unit 7 earlier this month. The new bundles, which will remain in the reactor for approximately a year, are designed to enhance safety margins.

- On May 11, Bruce Power celebrated its fifth anniversary by raising the reactor power on Unit 7 by three per cent, which has translated into an approximately 25 MW increase in output.

- Bruce Power workers recently celebrated 4.2 million hours without an acute lost time injury and have seen the industrial accident rate on site fall by 92 per cent over the last six years.

- On July 18, the company became the first electricity generating company in Canada to become a Sustaining Member of the Canadian Hydrogen Association (CHA).

- Bruce Power also contributed $500,000 to help fund a multi-year safety project by the Institute of Electrical and Electronics Engineers, Inc. and the National Fire Protection Association. The initiative is intended to gain a better understanding of arc flash hazards and how to protect electrical workers against them.

ODESSA, ON - Loyalist Township today approved an agreement to sell approximately 150 acres of industrial zoned land in the Taylor Kidd Industrial Park to Upper Canada Ethanol Inc. ("UCE"). UCE is intending to construct a $200 million fuel ethanol plant. The plant will produce 400 million litres of ethanol annually and will be one of the largest ethanol production facilities in Canada.

The Taylor Kidd Industrial Park is owned by Loyalist Township and is located on Lake Ontario, south east of Napanee, Ontario. Current tenants of the Taylor Kidd Complex include Invista, Bombardier and NPIF Kingston Co-gen. Clayton McEwen, Reeve of Loyalist Township said "This project will be a huge economic boost to the economy of Loyalist Township and will make a significant contribution to Ontario's and Canada's renewable fuels industry. The local construction industry will benefit, farmers will benefit and the environment will benefit. In turn, all residents of Loyalist Township will benefit from this development."

"We are very pleased that UCE has chosen our community for the location of its ethanol plant. Economic Development is a priority for the County of Lennox and Addington; we have worked extremely hard to establish a proactive business environment. The decision today by UCE illustrates that Lennox and Addington is an excellent location for business" added Doug Bearance, Warden of the County of Lennox and Addington.

The owners of Upper Canada Ethanol Inc. have a proven track record in the development of other ethanol projects, including a 400 million litre facility in Moses Lake in the state of Washington. Mark Hamelin, UCE Chairman, said, "We are very pleased by Council's decision and the leadership and co-operation shown by Reeve McEwen and his Council and the staff of Loyalist Township and the County of Lennox and Addington. This is an exciting investment that will add significantly to Canada's ethanol production capability and to the economy of this region."

"I am delighted that Upper Canada Ethanol has chosen to invest in Eastern Ontario, and in Lennox & Addington County in particular," said Leona Dombrowsky, MPP for Hastings-Frontenac-Lennox & Addington and Minister of Agriculture, Food and Rural Affairs. "This worthy initiative will contribute to our local economy, and will help Ontario expand its ethanol production."

Ethanol is a gasoline octane enhancer and a gasoline extender. It is becoming an increasingly important ingredient in the battle to reduce greenhouse gas emissions and to moderate the price of gasoline in Canada and the United States. The Government of Ontario has mandated that all transportation gasoline in the province must contain a minimum of 5% ethanol by January 1, 2007.

Corn-based ethanol production has other benefits for the local economy. It produces a very useful co-product, Distillers Dried Grains and Solubles (DDGS), a high protein feed supplement that will be available to local dairy and beef cattle farmers as well as swine and poultry operations.

The UCE plant will consume approximately 42 million bushels of corn annually and produce over 410,000 tonnes of DDGS annually. The UCE plant will be a modern, highly efficient and environmentally compliant facility incorporating state-of-the-art process technology.

"The regional economic benefits will be significant, "added Mr. Hamelin. "The plant will employ approximately 50 skilled workers and create between 200-300 indirect jobs in the region. In the construction phase there will be a significant requirement for local construction materials and services. Construction will provide direct and indirect employment for approximately 300 workers including many skilled trades. The plant will contribute to the local tax base, and will be a potential large buyer of corn from local farmers. The plant will provide a significant and reliable source of DDGS for local consumption at competitive prices."

In the coming months UCE will initiate the permitting process for the plant's construction. The company is targeting for construction to proceed in 2007.

Up To $2 Billion In Total Investment Helps Ensure Reliable And Affordable Energy Supply

QUEEN'S PARK - The McGuinty government is helping ensure Ontario has a safe, clean, reliable and affordable supply of electricity by directing the Ontario Power Authority to invest an additional $400 million in energy conservation programs over three years, Energy Minister Dwight Duncan announced July 13, 2006.

"Energy conservation is a central part of our plan for Ontario's energy future, and it's something that all of us can do," said Duncan. "This additional funding will help local distribution companies deliver more and better conservation programs to all Ontarians."

This new funding brings the total available to LDCs for conservation initiatives to more than $550 million, supporting the government's target of 6,300 megawatts of conservation by 2025.

"Ontario's electricity distributors play a critical role in the delivery of conservation and demand management programs," said Charlie Macaluso, president and CEO of the Electricity Distributors Association. "We're proud to announce that, by 2007, our members will have delivered over 500 such programs. The government's renewed financial commitment to expanding these programs is to be commended."

Some of the conservation programs planned or implemented across Ontario include Ottawa Hydro's Fridge Bounty program, Toronto Hydro's peakSAVER program and London Hydro's Chill Out program.

"Toronto Hydro has successfully launched a number of conservation programs in support of the government's challenge to reduce electricity use in the province," said Anthony Haines, Chief Administrative Officer of Toronto Hydro. "Today's announcement provides us with long-term financial support for conservation and demand management initiatives."

The new funding will provide support for a wide range of residential, commercial and industrial programs. These could include, among others:

<< - Replacement of incandescent lights with compact fluorescent lights

- Promoting Energy Star-compliant appliances

- Energy audits

- Load shifting to reduce peak demand

- Farm energy efficiency initiatives

- Energy-efficient LED traffic lighting for municipalities. >>

"Our government is giving Ontarians the tools they need to conserve electricity and save money on their energy bills," said Duncan. "The programs delivered by LDCs are an important part of building a conservation culture in Ontario."

This announcement brings the total province wide investment in conservation to up to $2 billion. Other conservation initiatives include: <<

- A commitment to reduce Ontario's projected peak electricity demand by five per cent by 2007, and the government's own electricity use by 10 per cent by 2007

- Increasing products covered by Ontario's Energy Efficiency Act to save Ontarians money and encourage energy conservation

- Legislating improvements to the Ontario Building Code to give it the toughest energy-efficiency standards of any building code in the country.

www.energy.gov.on.ca

Backgrounder

-------------------------------------------------------------------------

GOVERNMENT EXTENDS CONSERVATION FUNDING TO LOCAL DISTRIBUTION COMPANIES >>

In order to provide stable and secure funding to local distribution companies (LDCs), the Ontario government is making an additional $400 million available for conservation programs for a three-year period.

LDCs are a key delivery agent of conservation programs across Ontario because of their close relationship with their customers and their ability to respond to local needs.

In May 2004, Energy Minister Dwight Duncan requested LDCs to develop and deliver conservation programs for their customers and made it possible for the LDCs to fund these programs. The Ontario Energy Board approved $163 million for LDCs to invest in conservation and demand management initiatives over a three-year period ending on September 30, 2007.

Using these funds, LDCs have implemented or planned more than 500 conservation programs across the province. Examples of programs include:

<< - Toronto Hydro

- Keep Cool air conditioner retirement program

- peakSAVER program to help customers to lower their air conditioner use during periods of peak demand

- Hydro Ottawa

- Fridge Bounty program to retire older, inefficient refrigerators and freezers

- Project Porchlight - pilot program to deliver compact fluorescent lights

- Electric Avenue - a program showcasing the effectiveness of energy conservation initiatives in the residential sector - Powersteam

- Cool Shops program for small business - part of its plan to reduce peak load demand in Markham by five per cent in three years - Orillia Power

- Dollars to Sense program for industrial clients

- Niagara Erie Public Power Alliances

- Joint LED traffic light program.

The new funding will support a wide range of residential, commercial and industrial programs. It will also provide the opportunity to expand successful pilot programs to other parts of Ontario.

OTTAWA - With the Government of Ontario recently announcing funding and operating grants for new ethanol plants in the province, railways could play a big role in the sustainability of Ontario's emerging ethanol industry.

"I don't know of an ethanol plant that isn't going to be located on a railway line," said Tom Cox, the chair of the Integrated Grain Processors Co- operative. "It is absolutely critical to have railway access."

The ethanol plant funding is all part of the Ontario Ethanol Growth Fund and a mandate to reduce greenhouse gas emissions by blending ethanol in the province's gasoline. What it means for the railway lines is more industrial business.

The Integrated Grain Processors Co-operative was one recipient of funding to open a plant in Aylmer, Ontario next year. Cox said it should produce about 150 million litres of ethanol a year, and will need about 15 million bushels of corn to do it.

But he said the real prospect for railways will be the outgoing co- product and materials. In addition to ethanol, which should mostly remain in Ontario to be blended, a co-product that comes from the manufacturing process is distiller's grain.

"It's probably the material that will provide the most opportunity for the rail lines," said Cox. "A plant like ours will produce around 130,000 tonnes a year of that material."

Distiller's grain, primarily used as dairy cattle feed, should help to sustain other agricultural sectors as well. Doug Hayston, the director of marketing for Trillium Railway said access to rail infrastructure gives it the potential to be shipped anywhere.

Trillium's St. Thomas and Eastern line will be servicing the Aylmer plant, and interchanges with CN, Canadian Pacific Railway and Norfolk Southern Railway. Hayston said this is one reason why Aylmer was a strong candidate for the site.

"It is so important to have transportation when you are developing a plant," he said. "I wouldn't think twice about putting a plant on a site with access to three carriers."

But Hayston also warned the cattle feed market is becoming increasingly saturated with the number of ethanol plants starting up in Canada and the United States. He said they will soon have to find alternative marketplaces to ship to.

"With all this co-product floating around, there are not a lot of cows left to eat it," he said. "There has got to be an end use for some of this co- production."

Chris Deline, the logistics manager for Commercial Alcohols Inc.'s Chatham plant, said rail access allows them to look for different geographic areas, as well as entirely new markets like turkey and poultry farms, where they can send distiller's grain.

The company has utilized this and is building a new plant, located in Hensall, with access to the Goderich-Exeter Railway. Their largest plant in Chatham, which produces both fuel and commercial grade ethanol, is located on the Canadian Pacific Railway line.

Even with a growing demand for ethanol, Deline said most of the alcohol is not shipped by rail. He said they do have clients who request rail shipping and they do have the capability to do so, but many blending sites do not have the necessary infrastructure to receive railcars.

He reiterated that shipping out distiller's grain provides the most opportunity for railways and he also indicated there could be a demand for bringing in corn with the growing number of plants in Ontario.

"Currently, Ontario is a net importer of corn," he said, explaining Ontario uses more corn than it produces. "More ethanol plants will find that a portion of their corn will have to come in by rail."

This is especially true since Michigan, a net exporter of corn, is also seeing a growth in its ethanol industry. Because of this, Deline said Ontario plants will have to look further for their corn supply.

With the arrival of new ethanol plants in the province, he indicated the Chatham plant will soon be bringing some corn by rail. He said it already has the facilities to do so, and this is why rail infrastructure is vital for new and existing ethanol plants.

"It is critical," Deline said. "Rail is an absolute must."

SARNIA - Suncor Energy Products Inc. announced July 10 that its St. Clair Ethanol Plant is now in production. With an expected production volume of 200 million litres per year, the St. Clair Ethanol Plant is now the largest ethanol production facility in Canada.

"We are proud of our new, world-class ethanol production facility," said Tom Ryley, executive vice president of Suncor. "It demonstrates Suncor's commitment to renewable fuels in Ontario and to playing a leadership role in the Sarnia-Lambton community."

Located in St. Clair Township, near Sarnia, the St. Clair Ethanol Plant has 38 full-time employees and will provide a number of ongoing opportunities for local suppliers and service providers, including the agricultural sector. The primary feedstock for the plant is corn, and the operation is expected to use 20 million bushels of corn per year.

During construction of the $120 million facility, approximately 250 construction jobs were created.

Suncor has been blending ethanol into its Sunoco-branded gasoline sold since 1996. When blended with gasoline, ethanol helps reduce carbon monoxide emissions by up to 30%. Studies show the use of corn-based ethanol in Sunoco's fuel has had the equivalent effect of removing more than 20,000 cars from Ontario's roads. Ethanol is also a natural gas-line antifreeze in winter.

In addition to producing ethanol, Suncor is also supporting renewable energy development in Canada by pursuing wind power projects. Suncor has two wind power projects in operation - SunBridge in southwestern Saskatchewan and Magrath in southern Alberta. A third wind farm near Taber, Alberta received regulatory approval in spring 2005 and construction is under way. Pending regulatory approval, Suncor's fourth and largest wind farm is planned for a location east of Lake Huron in Ripley, Ontario.

A grand opening celebration at the St. Clair Ethanol Plant is being planned for later this summer.

The first comprehensive analysis of the full life cycles of soybean biodiesel and corn grain ethanol shows that biodiesel has much less of an impact on the environment and a much higher net energy benefit than corn ethanol, but that neither can do much to meet U.S. energy demand.

The study will be published in the July 11 Proceedings of the National Academy of Sciences.

The researchers tracked all the energy used for growing corn and soybeans and converting the crops into biofuels. They also looked at how much fertilizer and pesticide corn and soybeans required and how much greenhouse gases and nitrogen, phosphorus, and pesticide pollutants each released into the environment.

"Quantifying the benefits and costs of biofuels throughout their life cycles allows us not only to make sound choices today but also to identify better biofuels for the future," said Jason Hill, a postdoctoral researcher in the department of ecology, evolution, and behavior and the department of applied economics and lead author of the study.

The study showed that both corn grain ethanol and soybean biodiesel produce more energy than is needed to grow the crops and convert them into biofuels. This finding refutes other studies claiming that these biofuels require more energy to produce than they provide. The amount of energy each returns differs greatly, however. Soybean biodiesel returns 93 percent more energy than is used to produce it, while corn grain ethanol currently provides only 25 percent more energy.

Still, the researchers caution that neither biofuel can come close to meeting the growing demand for alternatives to petroleum. Dedicating all current U.S. corn and soybean production to biofuels would meet only 12 percent of gasoline demand and 6 percent of diesel demand. Meanwhile, global population growth and increasingly affluent societies will increase demand for corn and soybeans for food.

The authors showed that the environmental impacts of the two biofuels also differ. Soybean biodiesel produces 41 percent less greenhouse gas emissions than diesel fuel whereas corn grain ethanol produces 12 percent less greenhouse gas emissions than gasoline. Soybeans have another environmental advantage over corn because they require much less nitrogen fertilizer and pesticides, which get into groundwater, streams, rivers and oceans. These agricultural chemicals pollute drinking water, and nitrogen decreases biodiversity in global ecosystems. Nitrogen fertilizer, mainly from corn, causes the 'dead zone' in the Gulf of Mexico.

"We did this study to learn from ethanol and biodiesel," says David Tilman, Regents Professor of Ecology and a co-author of the study. "Producing biofuel for transportation is a fledgling industry. Corn ethanol and soybean biodiesel are successful first generation biofuels. The next step is a biofuel crop that requires low chemical and energy inputs and can give us much greater energy and environmental returns. Prairie grasses have great potential."

Biofuels such as switchgrass, mixed prairie grasses and woody plants produced on marginally productive agricultural land or biofuels produced from agricultural or forestry waste have the potential to provide much larger biofuel supplies with greater environmental benefits than corn ethanol and soybean biodiesel.

According to Douglas Tiffany, research fellow, department of applied economics and another co-author of the study, ethanol and biodiesel plants are early biorefineries that in the future will be capable of using different kinds of biomass and conversion technologies to produce a variety of biofuels and other products, depending upon market demands.

Hill adds that both ethanol and biodiesel have a long-term value as additives because they oxygenate fossil fuels, which allows them to burn cleaner. Biodiesel also protects engine parts when blended with diesel.

"There is plenty of demand for ethanol as an additive," Hill says. "The ethanol industry was built on using ethanol as an additive rather than a fuel. Using it as a biofuel such as E85 is a recent and currently unsustainable development. As is, there is barely enough corn grown to meet demand for ethanol as a 10 percent additive."
Copyright © 1992-2006 by SeedQuest

With This New Funding Round, SDTC's Cumulative Support For Ethanol and Other Biofuel Technologies Grows to Almost $60 Million

OTTAWA - Sustainable Development Technology Canada (SDTC) has approved $48 million in new funding for the development and demonstration of clean technologies that benefit the environment and economy.

The money will be allocated to 22 projects, and includes $7.3 million for four biofuel technology projects ranging from the production of ethanol from cellulose to biodiesel production from mustard seed. The new funding, approved in principle by SDTC's Board of Directors, brings SDTC's total commitment to biofuel technology initiatives to $59 million. Funding for each project is subject to final contract execution.

For the first time, SDTC has approved funding for soil and water-related projects, with $4 million allocated to five initiatives in this area. SDTC announced its initial call for applications for soil and water projects last year. The funds will go toward the development of monitoring and detection equipment that can help avoid water main breaks, improved agricultural practices and other technologies.

"By supporting clean technologies during the pre-commercialization stage, SDTC helps get them to market faster and more successfully," said SDTC Chairman James M. Stanford. "Not only will these technologies increase the efficiency and competitiveness of Canadian industries, but they will also reduce environmental impacts."

The 22 newly-approved projects target a wide variety of sectors that are core to Canada's economy including; energy exploration and production; power generation; energy utilization; transportation; agriculture; forestry and wood products; and waste management.

The private and public sector consortia partners behind the projects are investing an additional $111 million, representing a more than 2:1 ratio of industry-partner contribution to SDTC investment.

SDTC continues to be on track to allocate all of its funds up to December 2010.

"The Government of Canada is developing a plan focused on ensuring future generations enjoy clean air, clean water, clean land, and clean energy," said the Honourable Gary Lunn, Minister of Natural Resources. "As of July 1st, small and medium size companies will benefit from the reduced GST, lower business tax rates and increased tax allowances all of which will improve the economy's ability to invest in the research and development of new technologies. These clean technology investments and lower taxes in the recent budget show that Canada's new government is delivering on its commitments to a clean and healthy environment."

"The Government of Canada is committed to the goals of a stronger economy and healthier environment," said the Honourable Rona Ambrose, Minister of the Environment. "Innovative clean technologies such as those supported by SDTC can help us achieve both of these goals at the same time."

"The quality of the proposals SDTC receives and strength of the consortia behind them continue to improve, making us optimistic that Canada's clean technology infrastructure is gaining momentum," said Vicky J. Sharpe, President and CEO of SDTC. "That optimism extends to the positive environmental impacts and associated health benefits of SDTC funded projects. These projects often integrate clean air, climate change, clean water and clean soil benefits, providing holistic, real-world solutions for industry.

"The large contribution of small and medium sized enterprises (SMEs) to innovation in Canada is reflected in the fact that 89 per cent of SDTC's funded projects are led by SMEs, a trend that has continued in this funding round," Sharpe added.

Since April 2002, SDTC has completed eight funding rounds, committed $217 million to 97 clean technology projects, and leveraged $559 million from project consortia members, for a total portfolio value of $776 million.

SDTC will launch its next call for Statements of Interest (SOIs) on August 23, 2006. The upcoming call for SOIs will include a request for projects with technologies that address climate change, clean air, clean water and clean soil issues.

About SDTC

Sustainable Development Technology Canada is a foundation created by the Government of Canada that operates a $550 million fund to support the development and demonstration of clean technologies - solutions that address issues of climate change, clean air, clean water, and clean soil to deliver environmental, economic and health benefits to Canadians.

An arm's length, not-for-profit corporation, SDTC fills the void in the innovation chain between research and commercialization - helping clean technology developers move through the development and demonstration phases, in preparation for commercialization. SDTC applies a stringent due diligence process when selecting technologies and requires every applicant to involve a consortium of partners in their project.

SDTC encourages collaboration among private, financial, academic, and public sector partners, and with the Canadian government to build a sustainable development infrastructure in Canada.

The listing of the 22 funded projects is as follows:

A brief summary of each project and its consortium members is available at: http://www.sdtc.ca/en/news/media_releases/index.htm <<

1. Lead Organization: Advanced BioRefinery Incorporated, Ottawa, ON Economic Category: Forestry and Wood Products

2. Lead Organization: ARISE Technologies Corporation, Kitchener, ON Economic Category: Power Generation

3. Lead Organization: Bio Vision Technology Inc., New Minas, NS Economic Category: Energy Exploration and Production

4. Lead Organization: Bystronic Solution Centre, Ottawa, ON Economic Category: Energy Utilization

5. Lead Organization: Cerestech Inc., Montreal, QC Economic Category: Energy Utilization

6. Lead Organization: Chinook Mobile Heating and De-icing Inc., Ottawa, ON Economic Category: Transportation

7. Lead Organization: EcoVu Analytics Inc., Ottawa, ON Economic Category: Energy Utilization

8. Lead Organization: Ferti-Val Inc., Bromptonville, QC Economic Category: Waste Management

9. Lead Organization: Green Canal Holdings Inc., Hudson Heights, QC Economic Category: Energy Exploration and Production

10. Lead Organization: Hydrogenics Corporation, Mississauga, ON. Economic Category: Transportation

11. Lead Organization: Maritime Innovation, Rimouski, QC Economic Category: Transportation

12. Lead Organization: MCW Consultants Ltd., Toronto, ON Economic Category: Power Generation

13. Lead Organization: New Energy Corporation Inc., Calgary, AB. Economic Category: Power Generation

14. Lead Organization: Nutri-Loc Ingredients Corp., Burnaby, BC Economic Category: Energy Utilization

15. Lead Organization: Ostara Nutrient Recovery Technologies Inc., Vancouver, BC

Economic Category: Waste Management

16. Lead Organization: Peacock Industries Inc., Hague, SK

Economic Category: Agriculture

17. Lead Organization: Power Measurement Ltd., Saanichton, BC

Economic Category: Energy Utilization

18. Lead Organization: The Pressure Pipe Inspection Company Ltd.,

Mississauga, ON

Economic Category: Energy Utilization

19. Lead Organization: Tantalus Systems Corp., Vancouver, BC

Economic Category: Power Generation

20. Lead Organization: TSC Company Ltd., Calgary, AB

Economic Category: Energy Exploration and Production

21. Lead Organization: Unicell Ltd., Toronto, ON

Economic Category: Transportation

22. Lead Organization: Wind Smart Inc., Edmonton, AB

Economic Category: Power Generation

>>

VANCOUVER, BRITISH COLUMBIA - The Fraser Institute announced June 29 the creation of the Centre for Energy Policy Studies which has been established to research energy commodities (natural gas and oil products) and electricity supply (including power generated from renewable sources).

The research program will be split between electricity and other energy issues. The electricity portion of the program will focus on the Alberta and Ontario electricity markets in a North American and global context. Research in relation to other energy issues will mainly focus on energy commodity market issues, primarily on Western Canada in a continental and global context.

"The principal objective of the Centre is to study the structure of energy markets and recommend the appropriate roles of the private sector and governments in enhancing the cost, pricing, security, and use of energy resources," said Mark Mullins, the Institute's executive director. "We do not talk enough about public policy in this area and the new Centre is an opportunity to educate Canadians about the importance of this sector for our environment and the economy."

A number of potential areas for future research have been identified, including: electricity market reform; the role of nuclear power in meeting market demand for electricity; energy security and the continental market for energy resources; the environmental impact of oil sands development; and mandated renewable energy supply requirements.

Three new staff will be joining the Institute to undertake the initial research program. All will be based in the Institute's Calgary office.

Dr. Gerry Angevine joins as Senior Economist, Energy Studies. Dr. Angevine has been President of AECL, an energy economics consulting firm, since 1999 and was a Managing Consultant with Navigant Consulting Ltd. from 2001 to 2004. He was President, CEO, and a Director of the Canadian Energy Research Institute from 1979 to 1999. Prior to that, he worked as an economist at the Canadian Imperial Bank of Commerce and the Bank of Canada.

Wilf Gobert will join the Institute as a Senior Fellow, Energy Studies. Mr. Gobert previously held positions as Principal, Director, Vice-Chairman, and Managing Director of Research for Peters & Co. Ltd. from 1979 to 2006. Founded in 1971, Peters & Co. is an independent, fully integrated investment firm which has specialized for 35 years in investments in the Canadian oil, natural gas, and oilfield services industries.

Mr. Gobert has been an oil industry financial analyst since 1976 and consistently ranked among the top ten analysts in the industry.

Dara Hrytzak-Lieffers will join the Institute as Energy Policy Analyst. Ms. Hrytzak-Lieffers previously worked with the Prairie Centre Policy Institute as Energy Project Manager.

Ontario Home Electricity Relief Program Will Provide $100 Million For Low-Income Ontarians

TORONTO - The Ontario government passed legislation that will provide $100 million in assistance to low-income Ontarians to help them with rising electricity costs, Finance Minister Greg Sorbara said June 22.

"We are providing this one-time assistance to help low-income families adjust to higher electricity costs," said Sorbara. "We are proud this new program will get money into the hands of those who need it most, as quickly as possible."

The Ontario Home Electricity Relief program will provide $100 million in assistance to low-income individuals and families in the form of a one-time payment, which is based on family type and net income. Single people may receive up to $60, and families may receive up to $120. The following chart shows the amount of the relief payment based on family type and net income:
<<
------------------------------------------------------------------------- INDIVIDUALS FAMILIES
-------------------------------------------------------------------------
Net Income Relief Family Net Income Relief
-------------------------------------------------------------------------
Up to $14,000 $60 Up to $23,000 $120
-------------------------------------------------------------------------
$15,000 $50 $25,000 $100
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$16,000 $40 $27,000 $80
-------------------------------------------------------------------------
$17,000 $30 $29,000 $60
-------------------------------------------------------------------------
$18,000 $20 $31,000 $40
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$19,000 $10 $33,000 $20
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$20,000 and up $0 $35,000 and up $0
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To qualify, those eligible must file their 2005 tax returns by December 31, 2006. Relief payments could begin as early as the fall of 2006. "We recognize that low-income Ontarians spend a disproportionate amount of their incomes on electricity costs," Sorbara said. "This program is part of a package of measures to ensure that supports and opportunities are available to those in our province with the greatest need."

The program would build on initiatives proposed in the 2006 Budget, including:

<< - Making permanent the flow-through of the July 2004, 2005 and 2006 increases to the National Child Benefit Supplement;

- Increasing social assistance rates by two per cent for recipients of Ontario Works and the Ontario Disability Support Program, in addition to the three per cent increase in 2004-05;

- Enriching the Ontario Property and Sales Tax Credits so that seniors who receive the guaranteed minimum level of income from governments would get the full benefit of the credits;

- Providing additional support for at-risk youth; and

- Investing in developmental services, other supports for the vulnerable and affordable housing. >>

In addition, the government is doubling the provincial Emergency Energy Fund to $4.2 million, including $500,000 for First Nations members living on reserve. The fund helps social assistance recipients and other low-income households pay for utility arrears, security deposits and reconnection costs for electricity, natural gas, oil and other forms of energy.

Woodstock Hydro, with a consortium of partners, today launched an innovative conservation and demand management campaign.  It includes several new conservation initiatives including the unveiling of a Photovoltaic Array System installed on the roof of Woodstock’s Community Complex.

The eight-panel solar array and an educational kiosk placed inside the complex will provide solar education, conservation and demand management education and real-time monitoring ability for users to view energy produced by the array over the course of the next year.

The campaign has several additional elements that focus on educating Woodstock residents on the importance of conservation and ways to reduce their personal electricity consumption. 

The Virtual Education Centre (VEC), an interactive, web-based portal for local residents to learn more about conservation, energy issues and upcoming Woodstock Hydro initiatives.  The site will focus on educating the general public on the importance of conservation efforts, showcase Woodstock energy-innovators and explain the benefits of a conservation culture.

For 13 weeks over the summer, Woodstock residents will be able to tune into the Energy Buzz radio program, a daily radio program on Heart FM (104.7FM).  The program will showcase energy conservation tips and Woodstock success stories. 

Woodstock Hydro plans to implement a fall Compact Fluorescent Fundraiser (CFL) through all local public schools.  Participating students will be selling a package of CFLs to their family and friends. Proceeds from the sales will go to each school, with the provision that 50% of the school’s proceeds be used to further conservation efforts within the school.

After 1 year of monitoring, Woodstock Hydro plans to offer the PV panel array (and installation) as the grand prize in a Woodstock-wide contest.  Proceeds from the contest will be donated to the Woodstock General Hospital Foundation.  The winner will receive the PV panels and installation at their home – a prize valued at more than $20,000.

The PV panel array and educational kiosk will be monitored through Smart Metering Technology. Using technology similar to that being utilized today by Woodstock businesses, customers will have 24 hour internet access through Utilismart energy management software. School groups and the public will have the ability to monitor electrical generation and usage, providing a great opportunity to gain an understanding of the benefits that smart metering will provide in the future.

MONT TREMBLANT, QC, - Making Canada a sustainable energy superpower was the main objective of key energy decision makers who gathered in Mont Tremblant, Quebec at the Executive Energy Forum on Monday, June 19. According to delegates at the Forum, Canada has the potential to lead in key technology developments throughout the whole energy supply chain and sell energy, services and technology to the world. However, to make this a reality, Canada needs to define a clear policy that enables and protects all three sustainable dimensions: economic, environmental and social progress.

"Developing a policy framework - from all jurisdictions - will be instrumental to drive the vision that will enable us to make Canada a sustainable energy superpower," says Ken McCready, Senior Policy Advisor, Energy Council of Canada. "We also need to focus on our technological talent to improve the whole supply/use chain and commercialize the results for our gain and for the world's benefit."

The strategic planning behind this bold vision implies first to develop, adapt and adopt technology innovations to make more alternative sources available and 'close the loops' to ensure the sustainability of our traditional sources. Moreover, using our endowment efficiently and drawing on all primary sources from across the nation should create export opportunities. Finally, supplying more energy to world needs will support sustainable economic and social development.

Canada has an amazing opportunity to become one of the world's energy superpowers. Presenters and delegates challenged energy stakeholders to improve efficiency of use and increase supply to take advantage of world markets. The energy sector is prepared and Canada has the opportunity and the means to shape the future of sustainable energy development.

TORONTO - The Government of Ontario's recent announcement to include nuclear energy in the province's electricity supply mix is the right move, says Greenpeace co-founder and former leader Dr. Patrick Moore. "This decision means Ontario will be able to meet its energy needs, while supporting a non-greenhouse-gas-emitting power source that can help alleviate reliance on polluting fossil fuels," said Moore.

"Nuclear energy is clean, safe, reliable and cost-effective," said Moore. "Ontario's decision to reinvest in its nuclear energy infrastructure while also supporting renewable energy and conservation will mean a cleaner, healthier environment for all Ontarians," said Moore.

"Ontario is joining many other countries in a nuclear renaissance that recognizes the importance of pollution-free nuclear energy in meeting growing demand globally," said Moore.

"Canadians are particularly well suited to participating in this renaissance, so we're very pleased to see Ontario support leading-edge nuclear energy technology," said Moore.

Despite his strong support of the Ontario decision, Moore had some concern over the government's plan to place a cap of 14,000 megawatts on the production of nuclear energy.

"The 14,000 megawatt cap on nuclear energy is a concern because it limits Ontario's ability to provide clean, stable base-load power as demand increases over time," said Moore.

"The government is relying on conservation measures to reduce demand, and while that's good, we must also recognize that Ontario is a growing, prosperous economy with a large manufacturing and industrial base," said Moore.

"Ontarians are already doing their part their part to conserve energy," said Moore.

"The Ontario economy has grown by 45 percent in the past decade while energy consumption has grown by only 6 percent -- if that's not a measure of energy efficiency, I don't know what is," said Moore. "Conservation and renewables will only get you so far," said Moore. "Nuclear energy is the only clean energy source that can meet the province's increasing demand, particularly as the coal-fired power plants get phased out," said Moore.

"We would ask the Minister of Energy Dwight Duncan to reconsider this 14,000 megawatt cap because it hinders unnecessarily Ontario's ability to grow its energy supply," said Moore.