Ontario Greener Diesel Mandate Fails Producers

WELLAND, April 8, 2014 /CNW/ - The Province of Ontario issued a new regulation 
for Greener Biodiesel in the Province on April 1, 2014 and, after a 
stakeholder review meeting April 4, Ontario Biodiesel Producers' (OBPA) worst 
fears were confirmed. 
Biodiesel industry stakeholders anticipated a 2% volumetric mandate, 
increasing to 4% by 2017, a reasonable expectation given the federal Biodiesel 
mandate is currently 2% and Manitoba, Saskatchewan, Alberta, and B.C. also 
have similar mandates.  Further, a true 2% Biodiesel mandate would generate 
demand for 240 million litres of Biodiesel in Ontario - roughly the current 
operating production capacity - and even more important, such a mandate would 
have reduced carbon emissions in Ontario by almost 240 thousand tonnes in just 
the first year. 
The mandate announced, however, yields a compliance volume that is a fraction 
of the current production levels and, as a result, it may significantly reduce 
Biodiesel use and production. 
By developing its own system of calculations for Greenhouse Gas (GHG) 
emissions for blended diesel, the Ontario government has created a formula 
that reduces the suggested 2% mandate to a true effect of less than a quarter 
of that volume.  It is a truly disingenuous use of numbers. 
"The announcement is a disappointment to the majority of Ontario Biodiesel 
producers as we expected a true volume based mandate," says Paul Grenier, 
Executive Director of the Ontario Biodiesel Producers Association (OBPA). "The 
Province of Ontario lost an opportunity to be a national leader in the 
renewable fuels policy with this regulation by using their own version of a 
GHG calculating method with averaging factors and not using volumetric 
targets, as has been the practice of other jurisdictions adopting a biodiesel 
blending mandate."  The result is Ontario which has the highest volume of on 
road diesel use in the country has a mandate for Biodiesel that will be the 
lowest in the country.  This is a missed opportunity to grow an agricultural 
based biodiesel industry in the Province as well as to reduce carbon emissions 
and improve health for Ontarians. 
"Any regulation that reduces emissions produced by diesel-powered vehicles is 
good news for people with asthma, respiratory allergies and other lung 
illnesses," said Asthma Society of Canada President  & CEO Robert Oliphant.  
He expressed disappointment, however, that the Government of Ontario has been 
less ambitious in this effort than originally planned.  "There is a direct 
link between asthma exacerbations, hospital admissions, and untimely deaths 
and dirty fuels.  Speeding up the process of blending more renewable biofuel 
would lead to a healthier Ontario," he added. 
Ontario Biodiesel Producers Association (OBPA) has difficulty understanding 
the support given to this regulation by other stakeholder groups from 
Agriculture and the Canadian Renewable Fuels Association (CRFA). This 
regulation does little for Ontario Biodiesel producers and does not provide 
any significant increase in demand for Ontario produced grain oils to be used 
as feedstocks.  "The regulation that was announced is seen to favor the 
demands of oil producers, fuel blenders, and truckers in the province more 
than the biodiesel producers, environmentalists, and farmers," says Michel 
Laporte of Methes.  "It is understandable that the CRFA, with only one member 
plant producing biodiesel in Ontario and also oil companies as part of its 
membership, would support such a weak regulation," added Laporte. 
Ontario Biodiesel producers will struggle to survive under this reduced volume 
mandate, and must now find alternative markets for their Biodiesel. Mr. 
Grenier added "We will continue to work with the government and hope to 
protect and expand the jobs and investment in the Ontario Biodiesel production 
OBPA members have invested over $80 million in plant and equipment to produce 
Biodiesel in the Province.  OBPA members represent 75% of the total Biodiesel 
production in Ontario and include - Methes Energies Canada Inc. located in 
Mississauga and Sombra (55 million liters/year), Great Lakes Biodiesel (GLB) 
in Welland (170 million liters/year), and Noroxel Energy Limited in 
Springfield,  (5 million liters/year).

SOURCE  Ontario Biodiesel Producers Association 
Paul Grenier, Executive Director, Ontario Biodiesel Producers Association, 
(289) 820-6477, (905) 380-4787 (cell), pgrenier@biodieselontario.ca; Noah 
Farber, Director of Communications and Government Relations, Executive 
Director, National Asthma Patient Alliance (NAPA) Asthma Society of Canada, 
416-787-4050 x100, noah@asthma.ca 
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CO: Ontario Biodiesel Producers Association
ST: Ontario
-0- Apr/08/2014 14:49 GMT
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