The Canadian Renewable Fuels Association is praising British Columbia for taking a lead role in promoting biodiesel production in Canada.
Earlier this month, the provincial government tabled a bill that calls for a five percent mandate for biodiesel and ethanol by 2010.
“With this bill British Columbia will begin to grow beyond oil. They are leading the nation with the first five percent biodiesel target in Canada,” said association president Gordon Quaiattini.
The only other biodiesel mandate in Canada is the federal government’s two percent renewable content requirement that is to be implemented no later than 2012.
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Quaiattini said B.C. will eventually become a leading producer of cellulose ethanol once the technology for converting forestry and wood waste is refined. In the meantime, he added, the mandates will create an opportunity for ethanol and biodiesel plants in Alberta and Saskatchewan.
B.C. does not have the agricultural resources required to meet the proposed 2010 mandate, which means it will have to import feedstock or fuel from elsewhere.
The province’s Peace River district grows enough canola to support one biodiesel plant, but that’s about it. Fuel blenders will need to rely on biodiesel production from plants such as the Canadian Bioenergy Corp. facility planned for Fort Saskatchewan, Alta., and the recently announced Canadian Green Fuels plant in Regina.
“All of that has the capacity to find its way into the B.C. market,” Quaiattini said.
Judie Dyck, president of the Saskatchewan Biofuels Development Council, worries B.C. may buy its biodiesel from neighbouring states rather than neighbouring provinces.
“It’s just not that simple that because it’s a Canadian province that we’ll necessarily have access to the market,” she said.
Dyck has spoken to a B.C. blender who sells B5, B20 and B40 biodiesel blends. He buys product in the United States and doesn’t expect the mandate to change that.
“The comment that he gave me was, ‘we don’t care where the product comes from, we just want to fill that market,’ ” she said.
Dyck said the Canada-U.S. border is wide open for biofuel and blenders will factor in transportation costs and available subsidies when deciding where to buy.
However, Quaiattini is confident plants in Alberta and Saskatchewan will benefit from the B.C. mandate once the numbers are crunched.
“I happen to think that there will be opportunities for western provinces to be part of that and don’t think it would exclusively only come out of the U.S.”
The best way to ensure that prairie plants secure a market for their fuel is for provincial governments to adopt their own biodiesel mandates.
During last fall’s election campaign, the victorious Saskatchewan Party promised to implement a 2.5 percent biodiesel mandate once provincial production capacity is capable of meeting the demand.
Quaiattini said the Canadian Renewable Fuels Association will hold the government to that commitment.
“We are anxious to see them move ahead there on the biodiesel side,” he said.
