Federal renewable fuel policy a boost for Canadian biodiesel industry


SASKATOON, December 20, 2006 -Today's federal announcement in support of a
national renewable fuel strategy is a welcome and critical step forward in
the development of a made-in-Canada biodiesel industry, says the Canola
Council of Canada.  


The announcement calls for a five percent renewable fuel standard in all
Canadian fuel, including a two percent mandate for renewables in diesel by
2012.  Additional support will be provided for farmers to participate in the
biodiesel industry, which will create increased market opportunities for
Canadian canola growers and boost domestic production of the fuel.


"The two percent standard and access to funds for farmers to invest in
biodiesel production are key steps in getting this industry off the ground,"
says Barb Isman, president of the Canola Council of Canada.  "But without
government investments that put Canada on par with the U.S. there is no
biodiesel industry in Canada. We need to ensure this piece of the puzzle is
in place as soon as possible or the opportunity for Canadian farmers and the
economy will be lost. We are hopeful this will happen in the new year."


The Canola Council of Canada is currently working with the Canadian
petroleum industry to ensure biodiesel meets performance standards in
Canadian conditions. Once the program is complete in 2008, the Council is
confident growers and industry will accelerate production of the fuel in


"The government can then put biodiesel on the same schedule as ethanol,"
says Isman.  "We, along with biodiesel producers and distributors, are
confident we can build the necessary infrastructure to meet a two percent
biodiesel requirement by 2010 - two years ahead of the 2012 timeline. Our
longer term objective is to achieve a minimum of 5 percent biodiesel in the
fuel supply by 2015."


"Canada's canola growers are ready to make a Canadian biodiesel industry
happen," says Brian Chorney, a Manitoba canola farmer and vice president of
the Canadian Canola Growers Association. "Over the past 40 years, we have
created an $11 billion-a-year industry for canola in Canada and we already
ship canola internationally for biodiesel production.  We're committed to
using that experience to build a biodiesel industry at home."


Canola is the premium feedstock for biodiesel production in Canada, offering
a high oil yield per seed, low levels of saturated fat that benefit cold
weather performance and a highly stable oil that results in a cleaner
burning fuel.  


The Canola Council of Canada is a non-profit association representing the
entire canola industry - growers, input suppliers, researchers, crushers,
processors, exporters and marketers.


- 30 -


Interviews available with Canola Council representatives, canola growers,
and biodiesel researchers, producers, and users. For more information,
contact: Paul Welsh (604-761-5349), Diane Wreford (204-982-2108), Stephen
Burega (416- 979-1120 ext.305).







*         Biodiesel is a cleaner-burning fuel made from natural, renewable
resources such as vegetable oil.  Where ethanol is an alternative for
gasoline, biodiesel is an alternative for diesel fuel. 


*         Biodiesel can be used in any regular diesel engine with little or
no modification.  It is a viable alternative for on-road vehicles, from
municipal fleets to long-haul trucks, as well as off-road equipment used for
mining, forestry, construction, agriculture and marine industries.


*         Biodiesel can be used in its pure form (B100) or mixed with
petroleum diesel.  B5 indicates a blend of five per cent biodiesel with 95
per cent petroleum diesel. 


*         Using biodiesel cuts exhaust emissions, including black smoke,
odour, greenhouse gasses, air toxins and particulates. Pure biodiesel is
non-toxic and completely biodegradable.  


*         Biodiesel emissions show decreased levels of polycyclic aromatic
hydrocarbons (PAH) and nitrated PAH compounds which have been identified as
potential cancer causing compounds.  Its emissions contain virtually no
sulphur oxides or sulphates, major components of acid rain.


*         Biodiesel production and use reduces CO2 emissions by up to 110
per cent compared to petroleum diesel. 



Canola biodiesel


*         Canola's unique characteristics make it an ideal feedstock for


o        Canola's high oil content means more oil available per unit of
seed, with less by-product. 


o        Canola is low in saturated fat, which is linked to improved cold
weather performance for biodiesel.  


*         Canadian canola is currently exported for the creation of
biodiesel in other countries.  The EU is forecasted to import between
100,000 and 120,000 tonnes of Canadian canola oil in 2006 for use in their
biodiesel production facilities.  Several hundred thousand tonnes of canola
seed are exported to destinations such as the UAE, Turkey and Pakistan for
processing into oil to produce biodiesel. 







Canola biodiesel - a growing part of the Canadian economy


*         Canola currently contributes more than $11 billion in economic
activity to the Canadian economy.  


*         A canola-based biodiesel industry would drive economic growth in
Western Canada, including jobs on the prairies in agriculture, research and
fuel production. 


*         A 2006 study found that every $100 million of additional demand
for canola generates an additional $83 million in Canadian Gross Domestic
Product and more than 730 direct jobs in value-added industries including
crushing, processing and food production. (source: M Goodwin Consulting Ltd,
"Canola Socio-Economic Value Report," 2006)



Market demand for biodiesel


*         Biodiesel has been produced and used successfully in Europe, Asia
and the United States over the last decade.  In Germany alone, there are
more than 1,900 biodiesel fuelling stations. 


*         More than 20 major fleets in Canada and 500 major fleets in the
U.S. use biodiesel blends.


*         In 2004, 3.5 million litres of biodiesel was used in Canada. 


*         A minimum of 2 per cent renewable content in diesel fuels in
Canada will create the need for 600 million litres of biodiesel. 


*         The industry would require 1.3 billion litres of biodiesel under a
5 per cent requirement which would create market demand for 2.3 million
tonnes of canola (assuming a 70 per cent market penetration).


About the Canola Council


*         The Canola Council of Canada is a non-profit association
representing the entire canola industry - growers, input suppliers,
researchers, crushers, processors, exporters and marketers. 


*         The Council's Mission is to enhance the Canadian canola industry's
ability to profitably produce and supply seed, oil and meal products that
offer superior value to customers around the world.



For more information, visit or

Paul Welsh (604-761-5349), Diane Wreford (204-982-2108), Stephen Burega
(416-979-1120 ext.305).