MOOSE JAW, Sask. – Irrigated crops could provide a competitive advantage to biofuel production facilities, says an agribusiness development specialist.
John Ippolito, of Saskatchewan Agriculture in Outlook, said a stable feedstock supply located within 200 kilometres of a plant could reduce acquisition costs and even out supply problems.
But he also said that taking advantage of the opportunity will be difficult unless more irrigation occurs.
All the current irrigated acres planted to high yielding cereals would supply a 25-million-litre ethanol plant, he said. All the canola under irrigation could supply a 10-million-litre biodiesel plant.
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Those would be considered smaller facilities.
“There’s definitely a need for expansion if an ethanol or biodiesel plant is going to take advantage of the irrigation next to them,” he told producers attending an irrigation conference.
Saskatchewan will produce enough ethanol this year to supply its provincially mandated requirements of about 160 million litres.
During a panel on biofuels at the conference, hosted by the Saskatchewan Irrigation Projects Association and Irrigation Crop Diversification Corp., speakers talked about the need for a federal mandate.
Judie Dyck, co-chair of Saskatchewan’s biodiesel development task force, said she doesn’t expect a mandate before Christmas.
She said the federal minority government is preoccupied with other issues.
“It’s very iffy if we’re going to hear any news about the direction the government is going to take,” she said.
Keith Rueve, who manages the ethanol plant at Poundmaker Ag-Ventures in Lanigan, Sask., said a proper federal mandate is also necessary to get oil companies into the game.
Mohawk was originally involved in the Poundmaker facility and Rueve said that helped establish the 12.5-million-litre plant.
Al Scholz, of Saskatchewan Agrivision Corp., warned that producers have about three years to get involved in the ethanol industry.
“If producer groups don’t get their oar in the water and start working, the capacity will be achieved by the large oil companies,” he said.
But Scholz also warned that producers shouldn’t see biofuel as a silver bullet.
“Ethanol’s not going to save Western Canada. It’s one of the tools.”
He said just adding value doesn’t dictate higher prices for farmers, either. In most cases plants are paying market price for feedstock.
Ippolito agreed, saying, “for the producer to really benefit, he has to be a part owner.”
In the irrigated area around Lake Diefenbaker, producers are proposing two ethanol projects.
