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), firstname.lastname@example.org; Noah
Farber, Director of Communications and Government Relations, Executive
Director, National Asthma Patient Alliance (NAPA) Asthma Society of Canada,
416-787-4050 x100, email@example.com
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CO: Ontario Biodiesel Producers Association
NI: OIL ECO
-0- Apr/08/2014 14:49 GMT
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