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Manitoba Releases Action Plan to Promote Biodiesel Development and Use

1 November 2005

Manitoba
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The Canadian province of Manitoba has released an action plan to promote the development of biodiesel as a new opportunity for Manitoba producers and rural communities and a clean-energy alternative to fossil fuels.

Announced by Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk and Energy, Science and Technology Minister Dave Chomiak, the plan has two primary components: the cancellation of a C$0.115 per liter (US$0.37 per gallon) fuel tax on B100 and a C$1.5-million (US$1.3-million) support package for Manitoba biodiesel producers.

The elimination of the fuel tax on biodiesel will offer a Manitoba biodiesel tax advantage over regular diesel of approximately 5.5 cents (Canadian) per liter after provincial sales tax has been applied. The provincial tax incentive will be reviewed after four years.

The C$1.5-million request for proposals (RFP) support package will be offered to Manitoba biodiesel producers who wish to either increase production of biodiesel or to start a new venture. The federal funds are from Natural Resources Canada’s Opportunities Envelope and are subject to successful contribution agreements being negotiated with producers who are awarded funding.

Other elements of the biodiesel action plan include:

  • The establishment of an independent biodiesel board to review the RFP submissions of interested developers;

  • The establishment of a Manitoba-based biodiesel fuel quality testing center;

  • Developing a preference policy for Manitoba Transportation and Government Services for use of biodiesel in its fleet vehicles;

  • Conducting research on feedstocks and alternative markets for biodiesel co-products;

  • Studying the feasibility of using specified risk materials (SRMs) for biodiesel (SRMs are those components of livestock remains that are restricted due to BSE);

  • Working with private-sector fleet managers to encourage the use of biodiesel;

  • Conducting a long-haul demonstration to demonstrate the benefits of biodiesel;

  • Opening a biodiesel office to co-ordinate the roll out of the strategy.

Manitoba consumes approximately 850 million liters of diesel fuel (224.5 million gallons US) each year, the majority of which is used in the transportation and agriculture sectors.

There are currently two pre-commercial biodiesel production facilities in Manitoba: Bifrost Bio-Blends in Arborg and Celtic Power in Rapid City.

November 1, 2005 in Biodiesel, Canada, Policy | Permalink | Comments (3) | TrackBack (0)

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Comments

Manitoba shows us the way. First bit of tangible good news I've heard in a while. All this hydrogen mumbo jumbo was becoming a bit depressing.

Growing your fuel must be the alternative for the short term until fancy technology like fusion proves itself for hydrogen production.

Good to see Canadians have their feet planted in the ground so to speak. Only wish Australia would follow in this course, because over here we have more sun and land then we know what to do with which is perfect for gm modified fuel producing plants.

GM plants have been as much of a 'scam' as hydrogen. GM Soy is more expensive to grow because seed can only be bought from the licensed vendor, it can't be saved, plus the purpose of the modification is to make it not die when herbicide is sprayed, and since you went with the GM Soy in the first place, you obviously intended to use the herbicide it's meant to be used with. So far you've got two products to sell to farmers to grow a crop that are largely unnecessary, but to top it off the GM Soy doesn't even perform well in the real world because the strain they chose to modify and distribute everywhere doesn't respond well to dry spells and various other conditions that normal selective breeding by farmers had overcome.

Also consider the strange legal operations of Monsanto (seed and chemical producer) where if a farmer is found to have any amount of their patented plant growing in his field he can be sued for patent infringement, and this has happened in Canada. The reality is that the GM crops will blow seeds into adjacent fields just as plants have done (and spilling trucks do) for as long as we've been farming, not to mention the pollen that introduces the GM DNA to the non-GM plants. There should be some serious questions being asked about the safety and legal responsibility of growing a crop that will pollute other farmer's crops and force them to pay money for the privilege of having their land polluted by GM pants they chose to not grow... It's more than just choosing not to eat GM food, there are big risks and issues with growing it.

I certainly agree about Monsanto. Those bastards need to be subjected to a class-action lawsuit.

However - Canada is going to use their version of Rapeseed (Canola) that produces much more oil than Soy.

Now if we can just get the US to get off it's butt!

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