Canada has a choice: Expand our value-added agricultural economy
here at home, using canola as the base. Or export raw canola south
of the border and import biodiesel back into this country.
We need to bring those economic opportunities back to Canada by
doing what other nations have done to grow the biodiesel industry.
Without continued government investments that put Canadian
producers on par with the U.S., there will be no biodiesel industry
in this country.
At the federal and provincial levels, we need to focus on:
- Creating a reliable domestic market
- Introducing investment incentives for industry
- Supporting farmer equity investments
- Establishing quality standards
Creating a reliable domestic market
The Canola Council's objective is to reach a market demand of 5%
renewable content in all diesel fuel sold in Canada. We support
staged implementation, building on the federal government's 2%
requirement, which came into force July 1, 2011. We want to see
this mandate climb to 5% by 2015 to assure biodiesel industry
investors of stable demand.
Investment incentives for industry
Because of government incentives elsewhere, businesses are
deciding to establish biodiesel production plants outside of
Canada, using Canadian canola as the feedstock. For example,
Washington State will be the site of a 35 gallon biodiesel plant
that will source canola from Canada, and the EU regularly imports
100,000 to 120,000 tonnes of Canadian canola oil for use in their
biodiesel production facilities.
We need incentives to invest in a robust domestic industrial
base here in Canada. Governments could restore the competitive
balance by introducing accelerated depreciation of capital assets,
refundable tax credits for production and production
Supporting farmer equity investments
Governments should also facilitate opportunities for farmers to
actively participate in the biodiesel value chain. Their
partnership could help to diversify farm income and strengthen the
outlook for rural communities.
Establishing quality standards
To ensure reliability and end-user acceptance, Canada needs a
standard for biodiesel quality - including parameters for cold flow
and oxidative stability. Until our standard is developed, the ASTM
D 6751 standard for biodiesel provides a framework that has
supported biodiesel innovation in other countries.
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