Biodiesel in Canada

1
Biodiesel in Canada

• USCA
• November 2006
• Barbara Isman
• President, Canola Council of Canada

2
Well talk about.

• Current Canadian situation
• Where Biodiesel fits in the national agenda
• Policy framework to stimulate Canadian production
• Timetable
• Demand projections
• Biodiesel infrastructure support
• Biodiesel and 2015 Strategy

3
Current Canadian Situation
There have been 1 billion litres of announced
capacitysubject to Canadian government policy
4
Current Canadian Situation
5
Fit with the National Agenda

• Agriculture
• Price/Equity Participation/Rural Economic
  Development
• Environment
• GHG and Health Pollutant Reductions
• Energy Security
• Increased Domestic Energy Production

6
Creating a Policy Framework to Stimulate Canadian
Production

• Phased-in diesel specific RFS of 2 for 2010 and
  5 for 2015
• Tax parity with the USA (primarily the federal
  1/gallon biodiesel tax credit)
• Quality parameters to ensure end user acceptance
  and therefore long term success of the industry
• Encourage grower participation in value-added
  production

7
Creating a Policy Framework to Stimulate Canadian
Production

• Tax parity may be achieved through a federal
  program, ten years in duration, with a volume cap
  and open to renewables in diesel PLUS
  provincial road de-taxation and/or programs
• Mandate may be open to renewables in diesel and
  start in 2012, not 2010

8
Timetable

• Internal decision by federal government within
  next few weeks
• Coordination meeting with provinces in
  December/January
• Indication of policy announcement before
  Christmas
• Budget in late February
• Election in Spring 2007
• Re-introduction of budget in May/June

9
Demand Projections

• From Bushels to Litres.
•  
• 1 bushel 50 lbs/bu x .42 oil 21 lbs of canola
  oil
• 2.4 lbs/litre of biodiesel
• 8.75 litres biodiesel
• 44 bushels/tonne x 8.75 litres 385 litres
  produced per tonne of canola seed
• 1 acre x 30 bu/acre x 8.75 litres 262.5
  litres of canola oil
•  

10
Demand Projections

• If canola fills 70 of the 2 biodiesel RFS
  (approx 500 million litres) we would require
• 500,000,000 litres 1.299 million tonnes of
  canola 385 litres/tonne seed x .70
  909,000 tonnes of canola
• If canola fills 70 of the 5 biodiesel RFS
  (approx 1.3 billion litres) we would require
• 1,300,000,000 litres 3.377 million tonnes of
  canola 385 litres/tonne seed x .70
  2.363 million tonnes of canola

11
Biodiesel Infrastructure Support

• Methyl ester technology vs. hydro-treating will
  create need for biodiesel specific advocacy
• Cold-weather performance issues/processing
  consistency are major issues that need to be
  addressed in a market mandate environment
• Canola biodiesel branding initiative in
  development

12
Biodiesel Infrastructure Support

• A review of environmental assessments of
  biodiesel replacing fossil diesel
• Economic impact study for a canola-based
  biodiesel industry in Canada
• Three potential sources for increased canola oil
  production in the Canadian prairies to meet
  biodiesel demand
• Biodiesel Fact Sheets
• www.canola-council.org

13
Biodiesel and 2015
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Biodiesel and 2015

• Biodiesel as a
• platform for more sophisticated non-food uses
• driver for dramatic crush expansion
• reduced reliance on commodity export seed markets

15
Biodiesel and 2015

• Aggressive food promotion to
• reduce fears about non-food use
• North American Canola Oil Promotion
• Health and Nutrition Chair
• Canola Product Research Fund

16
Biodiesel and 2015

• The Canadian canola industry
• Innovative. Resilient. Determined to create
  superior value and a healthier world.