Canadian Biodiesel Mandate to Start July 1st

John Davis

All diesel fuel in Canada … for heating and transportation … will be required to have at least a 2 percent blend starting July 1, 2011.

This article from Reuters says this requirement joins the country’s 5 percent renewable content in gasoline:

Industry and investors had grown impatient waiting for word on the proposed regulatory change for diesel. The government said it needed proof from demonstration projects that biodiesel could perform under Canadian conditions before it set a start date.

The combined renewable fuel requirements will reduce greenhouse gas emissions by up to 4 megatonnes, the government said, equivalent to taking 1 million vehicles off the road.

Currently, Canada produces about 200 million litres (52 million gallons) of biodiesel annually. It will need about 550 million litres (145 million gallons) to meet government quotas.

“This is a milestone day for homegrown renewable biodiesel in Canada,” Canadian Renewable Fuels Association president Gordon Quaiattini said.

“It will help moderate price by adding to our fuel supply, create new jobs, and benefit farmers and drivers alike.”

The mandate could end up being a boon for the U.S. biodiesel industry. Right now, about 75 percent of biodiesel produced in Canada is sent to America. But with the new mandate, more of that will have to stay home, and possibly, the Canadians might have to get some biodiesel from their friends to the south to meet the requirement.

Biodiesel, Government, International