A proposed biodiesel plant in Regina may create an alternative fuel source and new markets for farmers.
Michael Shenher, president and chief executive officer of Canadian Green Fuels Inc., expects the new production and distribution plant to be operating by September.
Regina was chosen for the plant’s location due to its proximity to the Federated Co-op refinery, which will need the product for blending.
Shenher cited federal proposals calling for five percent biodiesel mixed into petroleum diesel blends by 2010. The co-op refinery ships approximately eight million litres of petroleum diesel daily and would need 400,000 litres of biodiesel for the five percent blend, said Shenher.
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He said the American levels could go even higher.
“Even if there is no immediate market here, there will be lots of capacity in the U.S.”
Shenher said rural Saskatchewan will benefit from biodiesel production.
It offers farmers a cheaper alternative to traditional fuels.
“We can make it for 65 to 70 cents a litre,” he said.
“It could be a very important hedge against world events that would have the potential to upset our economy.”
CGF will buy production from smaller biodiesel producers in Saskatchewan like Agri-Sea at Lucky Lake. Producers will be paid market value for their canola or other oilseeds, said Shenher.
He called biodiesel a renewable resource that is “less toxic than table salt,” produces up to 70 percent fewer emissions than traditional fuels, is less capital intensive to produce than ethanol and uses oilseeds.
“The best product to make biodiesel is canola and the markets are right here in Saskatchewan,” he said.
CGF has ordered equipment and engaged an engineering firm to build the processor.
Final costs are not yet known for the project, financed by a consortium of private investors and corporations.
