The canola industry thinks it has its biodiesel marching orders, but says it will have to move ahead quickly.
“We have a limited window on time on biodiesel,” said Canola Council of Canada president Barb Isman.
“It’ll close if too many more plants get put along the border,” she said, referring to canola based biodiesel plants under construction or planned in North Dakota and other border states.
The canola industry was “thrilled and excited” to see biofuels specifically mentioned in last week’s federal budget, even though money was not allocated, Isman said.
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Because the federal government has not yet developed a workable biodiesel policy, the industry had not expected to see biofuels mentioned. The direct reference is significant and makes the council think it can reach its goal of making biodiesel a key user of
Canadian canola.
“It appears they’re marching along at a really healthy pace,” said Isman.
Biodiesel development is already surging ahead in the United States.
Archer Daniels Midland Corp. is building a major biodiesel plant in North Dakota, just south of the international border, that will turn canola into fuel. Much of that plant’s feedstock will be canola from Canada.
U.S. governments already offer big tax breaks to biodiesel producers. The lack of incentives in Canada has slowed development here, industry proponents say.
Isman hopes to see that change soon, because there will be no need for a Canadian canola-based biodiesel industry if one is built just over the border.
She acknowledged that canola prices will benefit from biodiesel demand regardless of where it arises, but Canada shouldn’t be willing to see all the value-added development happen in other countries.
“The idea that the world’s pre-eminent canola growing region would end up essentially exporting all of the jobs and economic activity elsewhere is something that we Canadians should be ashamed of ourselves for (if it happened),” said Isman.
“For Canada, this represents a huge opportunity. It makes eminent sense.”
The canola council has scheduled a biodiesel conference for July in Calgary, where it hopes to bring the industry and government together to talk about how to quickly develop policies that will encourage a Canadian biodiesel industry.
The mention of biofuels in the budget should help shove the industry in the right direction, Isman said.
“There’s a long way between a mention in the bottom of a document to an actual policy, but it gives us a clear indication that we need to start working together really hard on putting the bones together of the policy and we need to continue to press on time,” said Isman.
