Manitoba to become first province to require some biodiesel in fuel

Manitoba will become the first province in Canada to mandate the use of biodiesel.

WINNIPEG — Manitoba will become the first province in Canada to mandate the use of biodiesel.

Energy Minister Jim Rondeau says that as of Nov. 1 the province will require that an average of two per cent of all diesel fuel sold in the province be biodiesel.

He says forcing oil companies to sell the renewable fuel is expected to cut greenhouse gas emissions in the province by 56,000 tonnes a year.

That’s the equivalent of taking 11,000 cars off the road.

In the 2007 provincial election campaign, the NDP promised to implement a five per cent biodiesel mandate by 2010.

Rondeau says the province decided to take a gradual approach to ensure a more seamless transition for the industry.

“We will be going to a five per cent blend eventually, but we want to do it with the co-operation of the industries … and we want to do it in a very sure-footed way.”

Biodiesel is a renewable fuel that can be produced from a variety of sources, including oils made from canola, soybeans and sunflowers.

There is already a licensed biodiesel producer in Winnipeg — Speedway International — capable of supplying the province’s entire needs under the new mandate for up to 22 million litres of biodiesel annually.

Speedway president Royce Rostecki could not be reached for comment Wednesday.

Manitoba may be first off the mark, but other jurisdictions won’t be far behind.

British Columbia is expected to introduce its own mandate effective Jan. 1.

And the federal government has announced that it plans to implement a national mandate of at least two per cent by 2012.

The biodiesel industry is expected to create an important new market for Canadian farmers, particularly those with oilseed crops that fail to meet food-grade standards.

Rondeau also said the province will help jump-start the industry by offering biodiesel producers a 14-cent-a-litre subsidy. The subsidy, which is to end in five years, will replace the government’s current fuel tax exemption on biodiesel.

The fuel industry will be given some flexibility in how it achieves its two per cent target, Rondeau said. Oil companies are expected to blend as much as five per cent biodiesel into diesel fuel in the warm months, with lower blends in the winter.

The minister said mandating the use of biodiesel should not drive up fuel costs for farmers, truckers and others who burn diesel in Manitoba, since the cost of blending is very low.

Last year, Manitoba mandated the blending of grain-based ethanol into gasoline sold in the province.

Just Posted

Man allegedly stabbed in hand at Red Deer fast food restaurant

Red Deer RCMP are asking the public to help identify the suspect

New book in Otis children’s series now available

Medicine River Wildlife Centre fundraiser

Police investigate shooting at O’Chiese

High-powered firearm involved

Rollover on Hwy 2 near Red Deer

Driver sustains minor injuries

Video: Windows smashed at three Red Deer businesses

Red Deer RCMP arrest man after vandalism spree

NHL stays with status quo as Canada pot legalization looms

As Riley Cote took and delivered countless punches over more than a… Continue reading

Paul Stanley: Kiss farewell tour could include ex-members

ATLANTIC CITY, N.J. — It won’t be all night, but former members… Continue reading

Judge tosses Stormy Daniels’ defamation suit against Trump

WASHINGTON — A federal judge dismissed Stormy Daniels’ defamation lawsuit against President… Continue reading

Canada open to growing trade with China now that USMCA is a done deal: PM

TORONTO — Canada is open to doing more business with China now… Continue reading

Pot shop raids “highly unlikely” on Wednesday: head of police chiefs

VANCOUVER — Police departments across Canada are fully prepared for marijuana legalization… Continue reading

Campers will be able to smoke cannabis at campsites in Canada’s national parks

Parks Canada says visitors should do their research on cannabis before going… Continue reading

U.S. pot firms urge Trump to deny Canadian producers’ ‘competitive advantage’

WASHINGTON — An American cannabis producer is warning President Donald Trump that… Continue reading

Automated cars could kill wide range of jobs, federal documents say

OTTAWA — More than one million jobs could be lost to the… Continue reading

Most Read