New Ontario biodiesel mandate means opportunity for Ontario’s farm sector says spokesman

by SUSAN MANN

Ontario’s new greener diesel mandate requiring two per cent biodiesel to be included immediately in all diesel sold in the province will create a potential market for 680,000 tonnes of soybeans annually.

By 2017, the amount of biofuel blended into regular diesel will required to be at four per cent, Ontario’s Environment Ministry says in an April 3 press release. The new rules on biodiesel in Ontario went into effect April 1.

In three years when it is fully implemented, Ontario’s greener diesel mandate is expected to reduce greenhouse gas emissions by about 600,000 tonnes a year, which is the equivalent of taking 140,000 cars off the road, the release says. “Greener diesel will also encourage investment in fuel terminals in Ontario and help expand market opportunities for agricultural-based products.”

Greener diesel is a blend of petroleum diesel and renewable biofuels made from feedstocks, such as canola and soybean oils, animal fats and recycled cooking oils.

“There’s already a federal mandate in place for two per cent across the country but with Ontario making a move like this what it means is it will drive some Ontario content into the province’s usage,” says Henry Van Ankum, chair of Grain Farmers of Ontario.

Van Ankum says “over time there’s no reason why it won’t be Ontario soybeans to fulfill this. I believe there’s enough soybeans grown in Ontario right now to make this possible.”

One of Grain Farmers’ priorities is the development and support of a local domestic biofuels and bioproducts market. The greener diesel mandate will establish a new market for Ontario-grown soybeans, Grain Farmers says in an April 3 press release. Local fuel made from soybeans reduces greenhouse gas emissions in vehicles by up to 85 per cent.

“We’re really pleased to see these regulations get completed,” Van Ankum says. “We knew these regulations were in the process for some time.”

The Canadian Renewable Fuels Association, founded in 1984, is also pleased with the Ontario Environment Ministry announcement on greener diesel. President Scott Thurlow says “we do expect immediately to see blending happen in Ontario as a result of this mandate from Ontario-produced biodiesel. But the mandate calls for an increase to the amount of biodiesel that will be needed, and that is when we expect to see the growth for this product.”

The association is a non-profit organization that works to promote the use of value-added products made from renewable resources.

The new Ontario government regulation is the “gold standard internationally for a renewable fuels mandate because it combines the need to have a physical product blended in and also qualifies that product to ensure environmental performance,” he says.

Biodiesel can be used in diesel cars, trucks, stationary power sources, boats and trains. Thurlow says most trucks won’t require any alternations to use biodiesel. “One hundred per cent of all new trucks that take diesel in Ontario now can blend up to five per cent biodiesel and three-quarters of the trucks sold in Ontario can blend up to 20 per cent biodiesel with no affect on the warranty.”

Trains are a fantastic market opportunity and “their engines can run on much higher blends of renewable content,” he says. “We’re excited at the prospect of that being a market for Ontario-based biodiesel.”

The association’s position is the more biodiesel that’s used “the better the impact that we have on reducing emissions,” he says. “Every litre of petroleum-based product that we replace with Ontario-made, Ontario-supplied feedstock biodiesel will improve air quality and reduce greenhouse gas emissions.” BF