There is a growing urgency for the federal Conservatives to follow through on their election promise to establish a national mandate for the biofuel industry, say Saskatchewan farm leaders, politicians and industry proponents.
“The federal government has to speed up its actions,” said Red Williams, president of Saskatchewan Agrivision Corp.
He said farmer-owned projects are languishing on the sidelines waiting for a producer-friendly mandate while large corporations continue to break ground on their mega-projects.
Saskatchewan deputy premier Clay Serby delivered a similar message to federal environment minister Rona Ambrose when he met with her late last month.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Serby said he had a strong sense that the hold-up is a lack of commitment from the federal finance department to provide dollars for the biofuel policy.
It means the Conservatives are unlikely to meet their deadline to have a biofuel policy announced by the end of the year.
And it means that many of the 30 biofuel projects proposed for Saskatchewan could get pushed aside as energy companies use their “deep pockets” to establish plants or invest in the United States. Those decisions could supplant Saskatchewan farmer-involved investment.
“We are losing traction and we are losing ground,” said Serby. “We expressed our frustration.”
Williams has heard rumours there won’t be any government announcement until February.
In the meantime, large corporations and institutional investors are staking out their territory with announcements of new plants.
Husky Energy recently opened a 130 million litre facility in Lloydminster, Sask., and is working on a twin plant in Minnedosa, Man.
NorAmera BioEnergy Corp. is running a 25 million litre operation in Weyburn, Sask.
Terra Grain Fuels has begun construction on a 150 million litre plant in Belle Plaine, Sask.
Dominion Energy Services LLC is building the mother of all Western Canadian biofuels projects – a massive 380 million litre ethanol plant and similar-sized biodiesel facility somewhere in Alberta.
“They haven’t announced a site yet but when they do it will virtually eliminate any producer projects in their feedstock catchment area,” said a Saskatchewan consultant who requested anonymity.
He said Canada is five years behind the U.S. and 10 years behind Europe in developing a biofuel industry. Producers need provincial and federal government incentives and they need them fast.
“Farmers are standing around waiting while big corporations take up the opportunity,” said the consultant.
“There are many people who believe that the ethanol opportunity is already gone.”
Industry advocates have said that if a supportive Canadian policy is not developed soon, company investment decisions will be made and the inclination will be to build plants in the U.S. where incentives and subsidies are larger and more predictable.
“We have to see some milestone in the next few months if we are to see the creation of an industry here,” said Jim Leier of the Tisdale Ethanol Development Group.
