New Rules in Place Nov. 1
Manitoba is continuing its role as a leader in the development and support of biofuels by becoming the first province to implement mandated biodiesel, Science, Technology, Energy and Mines Minister Jim Rondeau announced today.
“Today’s announcement of a biodiesel mandate once again reinforces Manitoba’s reputation as an innovator when it comes to the development of the biofuels industry,” said Rondeau. “Biodiesel will benefit Manitoba’s agricultural communities while reducing greenhouse gas emissions by 56,000 tonnes, the equivalent of taking 11,000 cars off the road annually.”
“This announcement is great news for our industry,” said Royce Rostecki, owner and president of Speedway International Inc., a producer of biofuels. “With the new mandate and incentive, Manitoba is going to become a force in fuel production, no longer relying solely on imported fuels.”
Beginning Nov. 1, Manitoba will set a mandate that requires, on average, two per cent biodiesel in all diesel fuel sold in a year, Rondeau said. This will give fuel suppliers the flexibility to deal with cold weather conditions in Manitoba. It is anticipated that five per cent biodiesel blends will be used on a seasonal basis during the warmer months to meet the mandate requirements. The minister added Manitoba will also consider a higher mandate once there is a Canadian fuel standard in place for biodiesel blends above five per cent.
The minister also said Manitoba intends to provide greater support for local biodiesel and economic development opportunities by replacing the current fuel tax exemption with a 14 cent per litre, five-year production grant for both on- and off-road biodiesel produced in Manitoba in the spring of 2010 to help keep Manitoba competitive with incentives offered in other North American jurisdictions.
Manitoba is committed to ensuring fuel quality for consumers, Rondeau said. This announcement builds on a previously announced regulation requiring the licensing of biodiesel manufacturers and the adoption of fuel-quality standards which will help ensure the integrity of the fuel supply.
There are two other biodiesel plants presently under construction in Manitoba. One is located in Arborg and the other in Beausejour.