Production | Spring 2009
Expanding crush capacity fuels biodiesel sector.
By Scott Garvey
As oilseed crush capacity in Canada expands to meet increased demand from the edible oils market, the quantity of by-products from the crushing process increases. And one of those by-products is oil that's unsuitable for the premium cooking oil market. As much as 10 to 12 per cent of all canola oil produced falls into that category.
That off-grade oil may be perfect to fuel the biodiesel sector. But with low petroleum prices, biodiesel isn't exactly forging ahead just now. “The biofuel industry in Saskatchewan is moving in baby steps,” says Zeneth Faye, canola grower and executive manager of Milligan Biofuels in Foam Lake, SK.
Despite the lull, Faye is optimistic about the future of biofuels in Canada. “The effect of expanded crush (capacity) on the biofuels industry is very positive,” he says. And he may have good reason for that optimism.
The Alberta government recently passed legislation mandating all diesel sold in that province have two per cent biodiesel content by 2010. And that follows on the heels of a similar announcement in B.C. mandating a five per cent content. That regulation, too, comes into effect in 2010. As well, Parliament passed bill C-33, which requires all heating oil to have a two per cent biodiesel content by 2012.
Those announcements have boosted optimism in the canola industry. “This announcement (Bill C-33) goes a long way toward encouraging the development of Canada's canola biodiesel infrastructure,” says JoAnne Buth, president of the Canola Council of Canada. “Crushing companies are ramping up production of canola oil, so what we need now is to get the biodiesel plants in place.”
Biofuel companies like Milligan may well see significant growth in the near future as a result of these new regulations. And Faye believes canola is the best oil for meeting biodiesel standards. “Canola has the best cold-weather performance,” he says. And the canola-based products his company produces have already attracted interest from major oil companies, mainly as a way to add lubricity to petroleum-based diesel fuel. “We see a pairing of the two industries (petroleum and biofuels),” says Faye.
