Fuel conditioner first step in canola market expansion

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Published: June 14, 2001

A drive down a winding road of innovation has been fueled by canola diesel, but the trip isn’t over.

A group of farmers and rural residents near Foam Lake, Sask., have developed a new fuel additive based on canola oil.

“We didn’t have a map for this trip. We just followed the roads that were in front of us for 5 1/2 years. Some were dead ends,” said Helgi Helgason, a Foam Lake farmer and president of Milligan Biotech.

“Our destination hasn’t changed. We want to produce biodiesel from canola. It’s just that right now we needed a product that will provide some cash flow and raise some money to continue working towards having our own crushing facility …. Our diesel fuel conditioner is that product,” he said.

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Fuel additives are popular for diesel engines. They provide lubrication and cleaning in the fuel, reducing buildup of emulsions on injectors and in fuel pumps.

Sulfur, found naturally in fuel, acts as lubricant, but governments worldwide, including Canada, have cut sulfur emissions. That makes the fuel harsher on engine parts.

Rob McGregor is a West Bend, Sask., farmer involved in the project and vice-president of the Saskatchewan Canola Growers Association. He said including 0.1 percent canola biodiesel adds up to a 13 percent increase in fuel efficiency and a 50 percent decrease in engine and injection pump wear.

“Biodiesel can be burned pure,” McGregor said. “At this point it’s still too expensive to produce. As an additive of 0.1 percent it competes very favorably with other additives on the market.

“We need to have alternative markets for canola. Our process will eventually crush canola that would otherwise get dumped in the coulees of this province. Your tractor or truck won’t care if it (the seed) is heated or green, we can make fuel out of it. But for now, we will make diesel conditioner out of cooking oil,” said McGregor.

Milligan Biotech has set up a small production facility in rented space in Foam Lake.

The first batch of fuel conditioner was made from two, one-tonne pallets of canola oil the company bought from a grocery store in Yorkton, Sask. One tonne of oil produces one tonne of fuel conditioner.

“It was the first time they had somebody come in and ask for two pallets of canola oil. It was a quick source and it was there when we needed it,” said Helgason, adding the company now buys from a crushing plant in Lloydminster.

The company, with the help of the federal and provincial governments as well as local investors and organizations, has investigated a variety of uses for canola. It said rising fuel prices will eventually justify the cost of production for oilseed-based fuels.

“In Europe, they have been using vegetable-based fuel for years. Many farmers are able to deliver a load of (canola) to the refinery and leave with fuel in exchange,” said McGregor.

The goal of a cold-press crushing facility that could handle 25 to 50 tonnes of canola a day has attracted the attentions of individuals and companies crushing other oilseeds. The Milligan group would also refine its own crushed oil and sell the remaining meal byproduct as livestock feed.

The University of Saskatchewan is testing the fuel conditioner.

One litre sells for $15 to $16 and will treat 1,000 litres of diesel fuel.

Where to buy:

Saskatoon – Martensville: McGregor’s Concrete; Foam Lake: Esso, Southside Service, Lakeview Farm Equipment, Racetrack Gas and the Foam Lake Co-op; or Milligan Biotech directly at 306-272-4642.

The company is developing a distribution network.

About the author

Michael Raine

Managing Editor, Saskatoon newsroom

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