All of the diesel sold in Manitoba must contain two percent biodiesel by Nov. 1, the provincial government announced last week.
That means Manitoba will become the first province in Canada to implement a biodiesel mandate.
“Biodiesel will benefit Manitoba’s agricultural communities while reducing greenhouse gas emissions by 56,000 tonnes, the equivalent of taking 11,000 cars off the road annually,” said Jim Rondeau, Manitoba’s energy and mines minister, in a statement Sept. 10.
The mandate requires that the total amount of biodiesel sold in a year must equal two percent of the diesel sold in the province. That means higher blends, such as five percent, will be used in the summer and lesser percentages of biodiesel, or none at all, in the winter.
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In addition, Rondeau also announced that next spring the province would introduce a 14 cent per litre production grant over five years for biodiesel produced in Manitoba.
The subsidy will provide a needed boost for Manitoba’s biofuel industry, said Royce Rostecki, owner and president of Speedway International, a biofuel company in Winnipeg.
“The Manitoba government essentially had to do this to help kick start Manitoba’s industry,” said Rostecki, whose company produces methanol for the car racing industry.
The province had to introduce a 14 cent per litre incentive, he said. Otherwise American biofuel companies would swoop in and dominate the provincial market.
“There’s a horrific trade imbalance in that U.S. (companies) get a dollar (per) U.S. gallon blender’s credit,” he added. “Once Manitoba’s mandate comes in, your big oil companies are going to buy (biodiesel) from whoever can provide them with a quality product at the best price.”
Gordon Quaiattini, president of the Canadian Renewable Fuels Association, said the Manitoba mandate would be the beginning of several biofuel implementations across the country.
British Columbia will bring in its biodiesel and ethanol requirements Jan. 1, Alberta will introduce its biodiesel and ethanol mandates July 1 and the federal government will introduce its five percent ethanol mandate in September.
The federal government may also introduce the two percent biodiesel standard earlier than the proposed 2012 date, Quaiattini said.
“(Federal) cabinet also did indicate that the two percent renewable diesel standard will come into effect in 2011 or sooner,” Quaiattini said. “Environment Canada is working to complete the entire regulatory package for both standards (ethanol and biodiesel), and that regulatory package will be completed by June of 2010. At that point cabinet will simply set the start date for the two percent.”
