April 17, 2007

PROVINCE INTRODUCES CHANGES WHICH WOULD ENSURE VIABLE DEVELOPMENT OF
BIODIESEL INDUSTRY
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Proposals Would Result In First Comprehensive Biofuels Legislation in
Canada: Rondeau

Proposed legislative changes have been introduced to the Biofuels Act which
would advance biodiesel market development and ensure biodiesel fuel
quality, Science, Technology, Energy and Mines Minister Jim Rondeau
announced today.

The proposed Biofuels Amendment Act would require that all biodiesel
produced for sale in Manitoba must meet or exceed stringent fuel quality
standards. In addition all biodiesel producers would need to obtain a
licence to produce biodiesel in Manitoba.

"We want to take all measures possible to ensure that biodiesel sold in
Manitoba meets the highest of fuel specifications. These measures will
protect both industry and consumers," said the minister.

Rondeau noted the proposed legislation would also position the province to
implement a mandate for biodiesel at some point in the near future. As the
first Canadian province to mandate biodiesel, Manitoba will solidify its
standing as a leader in the biofuels sector, he said.

"We will continue to work closely with industry stakeholders as we continue
to develop biofuels in a sustainable way that preserves the integrity of the
industry. Strengthening the province's biofuels industry is consistent with
Manitoba's Creating Opportunities Action Plan, a strategy to enhance
economic development opportunities across rural and northern Manitoba."

The legislation would also harmonize the ethanol program with other
jurisdictions across Canada.

"When we first proposed an ethanol requirement back in 2003, there was very
little provincial or federal policy in place,"
said Rondeau. "Two other provinces have mandated ethanol and we want to
ensure our policy framework makes the distribution system as efficient as
possible."

Manitoba recently launched successful biodiesel demonstration projects in
large commercial fleets with Manitoba Hydro, school buses with Winnipeg One
School Division and the trucking industry with Border Chemical.

The federal government recently announced its intention to mandate renewable
fuel content in diesel by 2012. Four jurisdictions have mandated biodiesel
in the United States and at least 11 others have announced intentions to
follow.

Husky Energy is building a 130-million-litre ethanol production facility at
Minnedosa which will expand Manitoba's ethanol production from the current
annual production capacity of 10 million litres. It is expected that this
plant will be producing ethanol this fall. Manitoba is aiming to have an
ethanol mandate by the end of this year, said Rondeau.