Ontario government commits to provincial biodiesel mandate

By The Canadian Renewable Fuels Association | May 02, 2013

The Canadian Renewable Fuels Association welcomed the provincial government's commitment to renewable fuels use and production in Ontario.

As announced by Finance Minister Charles Sousa in the budget released May 2, the government will seek to repeal the existing biodiesel tax exemption by April 1, 2014, a move that would save the province up to $240 million in tax exposure over 10 years, and undertake a formal consultation on the creation of a renewable diesel mandate, based on fuel percentage and carbon intensity, for all diesel sold in Ontario.

The CRFA has recommended a 2 percent biodiesel mandate for Ontario, which would require the blending of 160 million liters (42.3 million gallons) of B100 in the province. Such a mandate would reduce harmful greenhouse gas emissions and encourage biodiesel production in Ontario.

“These consultations are a step in the right direction for Ontario,” said Kevin Norton, CEO of Biox Corp. “Provincial mandates provide clarity for diesel refiners and importers. As the largest biodiesel producer in Canada, the implementation of a renewable diesel mandate in Ontario would provide us with market certainty right in our backyard and support the significant capital investment we have made at our Hamilton facility.”

Renewable and clean energy, such as biofuel, is proven to contribute directly to our economy, our environment, and the strength of our agricultural sector.

“We are pleased to see Ontario working towards a minimum renewable fuel standard for diesel fuel marketed in the Province,” said Todd Moser, vice president and general manager at Rothsay. “Creating stable market demand for renewable fuels is an essential driver for continued investments in clean energy technologies from all levels of the value chain. A mandate would help ensure Ontarians realize not only the strong economic benefits, but also the environmental advantages that come from burning a cleaner more sustainable fuel in the most populous and traffic congested region of Canada.”

“Today’s announcement is welcome news for our renewable fuels industry and the farmers we work so closely with,” said CRFA President W. Scott Thurlow. “Domestic biofuels production delivers proven environmental and economic benefits for local communities—including cleaner air and more consumer choice at the fuel pump. We look forward to participating in these important consultations and encourage political parties of all stripes to support this initiative without delay.”

The CRFA’s prebudget submission to establish an Ontario mandate for renewable diesel was presented to the Standing Committee on Finance and Economic Affairs on March 21 and can be viewed here. CRFA is urging prompt passing of the budget released May 2. 

Biodiesel 101

-Biodiesel is a clean-burning renewable fuel typically made from vegetable oil or animal fats. It can be used in all diesel vehicles and provides as much power as normal diesel fuel.

-In a B20 blend, biodiesel typically adds less than one penny per liter to the cost of the fuel.

Real Environmental Benefits

-Biodiesel is a practical alternative fuel that cuts emissions from our diesel cars, trucks and trains.

-Using biodiesel reduces carbon dioxide emissions and greenhouse gases by up to 99 percent compared with petroleum diesel.

Road Tested, Proven Reliable

-Biodiesel is a high-performance fuel; it achieves the highest levels of automobile performance and improves engine-life.

-Cold-weather biodiesel demonstration projects found there was no meaningful difference in fuel mileage.

Founded in 1984, the CRFA is a nonprofit organization with a mission to promote the use of renewable fuels for transportation through consumer awareness and government liaison activities.

Biox is a renewable energy company that owns and operates Canada’s largest biodiesel production facility, with a nameplate capacity of 67 million liters per year. Biox has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks—from pure seed oils to animal fats to recovered vegetable oils with no change to the production process. Biox’s high-quality biodiesel fuel meets North American (ASTM D6751) quality standards. Biox is Canada’s largest biodiesel producer and is focused on building, owning and operating a network of commercial scale biodiesel production facilities in jurisdictions where clearly defined renewable fuel standards policies exist.

As Canada’s first commercial-scale biodiesel producer, Rothsay provides sustainable, value-added solutions throughout Canada’s food and agribusiness supply chains for years. It collects food waste from local producers and turns it into commercially available clean burning biodiesel that reduces greenhouse gases by as much as 99 percent compared to petroleum based diesel. Rothsay also uses renewable fuel blends in its own transportation fleet to significantly decrease its environmental footprint and provided an additional source of environmental equity and sustainability to its customers.

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