An organization designed to fuel development of a biodiesel industry in Canada will soon be up and running.
Oilseed growers and processors plan to get together in Winnipeg May 21 for the inaugural meeting of Biodiesel Canada.
The immediate goal of the meeting is to finalize the organization’s business plan before the official launch of its lobbying campaign in June.
But an official with the Canadian Canola Growers Association said it’s already clear what Biodiesel Canada will ask for.
“I’m fairly confident that we’re going to conclude with a recommendation for a mandated two percent biodiesel blend in diesel fuel,” association general manager Ernie Doerksen said in an interview last week.
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Studies indicate that a two percent biodiesel standard for all diesel fuel manufactured in Canada would provide growers with a market for the production from an additional two million acres of canola, said Doerksen.
And that could lead to the development of new canola varieties designed specifically for the biodiesel market, which would provide higher returns for farmers.
“The price may not be comparable to the canola going to the food market, but it would certainly be higher than the heavily discounted prices growers have to take right now,” said Doerksen.
Biodiesel, which refers to any blended fuel involving plant oil or animal fat, is seen as a way to improve engine performance while at the same time providing cleaner emissions and other environmental benefits, such as biodegradability.
Proponents say biodiesel could also play a significant role as Canada moves to comply with the Kyoto protocol on greenhouse gas emissions.
The industry is well-established in the European Union, which has an annual production capacity of two million tonnes and in 2002 produced 1.1 million.
The development of the industry there has been aided by government subsidies and favourable tax policies.
The latest boost came in early April, when the EU passed a directive requiring all member states to increase the use of biofuels to a minimum of two percent of all diesel and gasoline sold for transport purposes by December 2005, increasing to 5.75 percent by 2010.
“The EU is a real model,” said Doerksen. “They’re quite a few years ahead of us on this.”
Don Jarvis of Inter/Sect Alliance, an Ottawa-based consulting group that has been involved in the creation of Biodiesel Canada, said all stakeholders, including growers, processors, diesel manufacturers, consumers and government, must work with the same information and toward the same goals.
“We want this organization to get off on the right foot,” he said.
Once the new organization is in place, members hope it will work with government on a variety of issues, including policies affecting oilseed production and pricing, and especially fuel taxes.
It will also be able to work with other stakeholders, such as car manufacturers, to ensure that the use of biodiesel will not invalidate warranty protection for consumers, and petroleum manufacturers and distributors.
Jarvis cautioned that stakeholders will want to see solid information as to exactly what the potential for biodiesel is in Canada before committing significant time and resources.
“The bottom line is fundamentally that the industry in Canada has to be an economic plus for canola and soybean growers and for the crushing and refining industries,” he said.
The May 21 meeting is expected to involve representatives from the Canadian Canola Growers Association, which is made up of provincial associations from Ontario, Manitoba, Saskatchewan, Alberta and British Columbia, Ontario soybean growers, and the Canadian Oilseed Processors Association, which is made up of CanAmera Foods, Cargill, Canbra Foods and ADM Agri-Industries.
