There was no shortage of optimism at a recent biodiesel conference in Calgary, but two officials from the oil and trucking industries weren’t jumping on the bandwagon.
While strong support for farmer involvement in the production of biodiesel was the norm at the conference, held July 14-15 and organized by the Canola Council of Canada, Shell Canada and the American Trucking Associations quelled some of that enthusiasm.
Shell Global is the largest distributor of biofuel in the world and is investigating alternative energy sources.
“Everyone in our industry understands that the energy supply is changing,” Gerry Ertel of Shell told the conference.
Read Also
Research focuses on drought tolerant alfalfa
Exotic alfalfa varieties that produce white, blue, cream and yellow flowers are being looked at by plant breeders to improve the crop’s drought tolerance.
“Oil and gas are going to diminish in their dominance of the transportation sector and energy sector as a whole and they will be replaced by other fuel.”
Farm communities are welcome to invest in small scale plants but it is unlikely Shell is interested in buying from a five to 10 million litre plant because it may not meet quality criteria, he said. Nor is Shell likely to produce its own biodiesel.
Quality includes fuel economy, cold flow, viscosity and microbiological growth in the product. Progress is being made to correct problems but more research is needed. Shell will require a certificate of approval from every batch produced that it buys.
Canadian conditions must be researched because most information on fuel performance is from Europe where cold conditions are a lesser concern.
Shell is worried about cloud point, the temperature when wax comes out of the solution in cold temperatures, which can damage engines.
Truckers are also concerned with biodiesel.
Richard Moskowitz, who represented the American Trucking Associations at the conference, said his industry wants assurances that if truckers fill up in Vancouver where the cloud point is -11 C, they can arrive safely in Calgary, Fort McMurray, Alta., or Saskatoon in -30 C temperatures.
The U.S. experience with biodiesel has been tenuous but the ATA has agreed to try the product, Moskowitz said.
The association supports the use of biodiesel in blends of up to five percent, as long as the finished product meets engine manufacturer’s requirements so warranties are not invalidated.
However, he said biofuel is not the answer for long distance truckers who burn nearly 25 billion gallons of diesel per year.
“Energy security is never going to be solved by biodiesel,” he said.
By 2015 fuel manufacturers hope to produce one billion gallons per year.
“That is only 2.7 percent of the diesel fuel the trucking industry consumes,” he said.
“We don’t particularly understand why there is a push for (20 percent blends) because in the foreseeable future the industry cannot produce enough biodiesel to satisfy more than two percent of the diesel fuel we use in the United States.”
Barb Isman of the canola council, a biodiesel supporter, said while Canada has enough canola to fuel the industry, it lags behind most of the world in biodiesel production.
“We are just talking abut implementing a policy, so we are way behind when we talk about Canadian biodiesel, ” she said.
The federal government has promised a renewable resources strategy this fall and those who want to develop a biofuel industry want assurances of national performance standards and perhaps a subsidy program comparable to the United States.
“We need a 30 cent per litre subsidy to achieve parity with the U.S. to ensure value adding stays in Canada,” Isman told the conference.
Producer involvement is a must to get plants built, as long as government incentives exist, said consultant Mike Bryan of BBI International, which conducts feasibility studies for businesses.
“There have to be additional incentives in addition to the requirements in order for biodiesels to assume a rightful place in the fuel pool in Canada,” he said.
If the western provinces used canola to produce 100 percent of Canada’s biodiesel needs, Bryan said 22 plants would be required across the Prairies to produce 1.3 billion litres and meet the government requirement of five percent blends in transportation vehicles.
He suggested 900 million litres of diesel is more realistic, which would require 45 percent of the annual canola crop. If canola had a 70 percent market share in the manufacturing of fuel, $91 million in net profit would be possible as well as spinoff benefits of jobs and manufacturing goods from canola byproducts.
Consultant Mark Goodwin said that if canola is the feedstock of choice, there is a potential for plant breeding and agronomics to increase oil content by two percent from the average of 42 percent.
At a conservative level, oil yield could increase from about three tonnes per year to 6.7 tonnes by 2015. A more optimistic projection suggests 8.4 million tonnes are possible.
While there is strong support for this industry, canola council president Brian Tischler warns it is not the only solution to what ails the prairie farm economy.
“Our push is for farmer participation, but it is not the answer for agriculture; it should be an option for farmers who want to do it,” he said.
Kenton Ziegler, who farms near Beiseker, Alta., supports canola-based biodiesel with its potential for improved economic returns to his farm and environmental benefits. If biodiesel were available, he would try it.
Alberta agriculture minister Doug Horner is a strong proponent of building biofuel plants through new generation co-ops and corporate investment. The concept fits well with his department’s push for value-added processing and rural development.
