BEAUSEJOUR, Man. – When asked who can join their co-op, the chair of Brokenhead River Biofuels Ltd. responds quickly.
“You’ve got to be an agricultural producer. Otherwise, you cannot join,” said Hans Muster.
Muster and the 25 members of the co-op plan for construction to begin this August on a canola crushing plant and five million litre biodiesel facility near Beausejour, Man., 40 kilometres northeast of Winnipeg. The plant, which the co-op members will own and operate, is expected to run year round in order to have enough fuel in storage to supply the peak agricultural periods of spring and fall.
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Muster noted that what sets the co-op’s project apart from other biofuel initiatives on the Prairies is that no biodiesel will be sold. The plant’s production is solely for members. The public’s cash, credit cards or Interac are no good at the biofuel co-op.
“You deliver your canola and take your biodiesel back. That’s why you have to be a producer,” said Muster. “If you (use) 25,000 litres of biodiesel per year, you bring enough canola to produce 25,000 litres of biodiesel.”
Aside from providing canola, the co-op members will also provide the start-up costs to build the plant, estimated at $3 million.
The principle behind the Brokenhead River model, Muster said, is based on the history of farming.
“In the past you grew your oats for your horses. Now, our horses are a little bit different, so we need fuel for them,” said Muster, who noted the members hope to use Brokenhead biodiesel in their tractors next spring.
One of the primary benefits of this model is more control over diesel costs, said Brad Saluk, secretary-treasurer.
“That set-aside bushels (of canola) is to power your farm. The rest (of the crop) is going to make you the money,” he said.
The co-op structure allows farmers to have control of the biofuel plant, unlike a public company that must tailor decisions to satisfy a corporate shareholder in Toronto or Tokyo.
“As farmers, we know we’re not going to make returns on our money fast, but it’s going to come,” Saluk said.
Selling canola meal to local livestock operators is part of the plan to make the plant profitable. As well, it will increase the locally grown content of feed, benefiting both buyers and sellers.
“That canola, otherwise, would be going to China or Japan and it would be processed over there,” said Patrick Lachance, a member of the co-op. “Whereas if it’s locally processed, that meal goes on the market and increases the supply of feed.”
Another benefit of the project’s local focus is the transportation efficiency.
“My grain goes to town and the fuel comes back to my yard,” said Lachance, as opposed to the long and expensive process of extracting mineral oil from tar sands, refining it and transporting it down a pipeline.
Overcoming the skepticism on biofuel, reinforced by bad press in 2008, has been a large challenge for the leaders of Brokenhead River Biofuels.
However, because the prospect of $150 per barrel oil is no longer six-beer talk, skeptics are suddenly interested in the project.
If late converts to the Beausejour biodiesel project would like to join, the co-op is still seeking canola growers. Ideally, the group wants to have 40 members, preferably those who farm in eastern Manitoba.
“No delivery charges within 100 kilometres. Everything after that, there’s a delivery charge,” said Carl Bangert, vice-chair of the co-op.
For more information on joining, phone Muster at 204-265-3494.
