August 27, 2019 – Today’s commitment to increase the biofuel content in Manitoba’s diesel fuel will lower greenhouse gas emissions and bring more stable and diverse market opportunities for the canola sector at a critical time. Manitoba Premier Brian Pallister announced today that a re-elected PC government will increase the required biofuel content in diesel from 2% to 5% as outlined in the province’s Clean Energy Strategy.
“Enhancing biofuel use is a win-win-win for Manitoba. It reduces greenhouse gas emissions, promotes value added processing of canola and creates a larger domestic market for canola that is free from international trade actions,” says Jim Everson, president of the Canola Council of Canada (CCC). “This announcement is welcome and timely given the current market access challenges facing our industry.”
The inclusion of more biofuel in the diesel pool will help bring more stability to the canola industry – a sector that contributes $4.2 billion to Manitoba’s economy and supports 40,000 jobs. Half of all the canola grown by Manitoba farmers is now processed in the province, providing direct economic benefit to the surrounding rural communities.
In addition to increasing the biofuel mandate to support further economic growth, the CCC recommends the province also include a performance standard requiring all biofuels to reduce greenhouse gases (GHGs) by at least 50% relative to conventional fossil diesel. This would ensure all biofuel feedstock delivers real and robust GHG emission reductions.
“Canola is the perfect candidate for biofuels, largely because Canadian growers have such as strong track record of sustainable production practices,” says Everson. Canola-based biofuels have among the lowest carbon footprints in the world, reducing lifecycle GHG emission by up to 90% compared to fossil diesel.
Increasing the biofuel mandate nationally to 5% would drive canola demand for use in biofuels to 1.3 million tonnes, providing an estimated $650 million at the farmgate and reducing GHG emissions by 3.5 million tonnes per year. To learn more, visit canolabiodiesel.ca.
The CCC is a full value chain organization representing canola growers, processors, life science companies and exporters. Keep it Coming 2025 is the strategic plan to ensure the canola industry’s continued growth, demand, stability and success – achieving 52 bushels per acre to meet global market demand of 26 million metric tonnes by the year 2025.
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