Wednesday, September 20, 2006

[Biodiesel News] Biofuels changing face of agriculture

Biofuels changing face of agriculture

Regina Leader-Post - Regina,Saskatchewan,Canada

... Biodiesel is one of the forces behind the announcement of two new canola crushing plants for Yorkton. It's one thing to export canola ...

 

After harvest, the policy and politics of agriculture ramps up. This fall and winter, one of the dominant issues will be biofuels.

 

Cypress Agri Energy of Shaunavon has organized the Saskatchewan Ethanol Symposium for Oct. 12.

 

Shaunavon has long been working on an ethanol production facility. It's hoped that a symposium with an impressive list of speakers will help their efforts.

 

Biodiesel is one of the forces behind the announcement of two new canola crushing plants for Yorkton.

 

It's one thing to export canola oil to Europe for biodiesel production. It's quite another to contemplate a biodiesel facility attached to one of these new crushers at some point in the future.

 

Biodiesel facilities are being built in the U.S. at a rapid pace. The U.S. ethanol industry is consuming huge quantities of U.S. corn.

 

Here in Saskatchewan, any major biodiesel production seems to be a long way off, but construction will soon begin on a new ethanol plant near Belle Plaine. Unlike the ill-fated Broe facility proposed for the same location, this project by Terra Grain Fuels Inc. looks to be real.

 

Reports indicate this facility will be even larger than the one by Husky Energy that's coming on stream near Lloydminster.

 

The Husky facility will produce 130 million litres a year while consuming 350,000 tonnes of wheat. Husky is building a similar plant near Minnedosa, Man.

 

North West Terminal at Unity has surpassed its minimum requirement in a share offering and continues to raise more money for a 25-million-litre producer-owned ethanol facility.

 

Other ethanol projects are in various stages of development.

 

Everyone is watching to see what the federal government comes out with.

 

Sometime in November, the Feds are expected to announce their long-awaited renewal fuel strategy. Minimum ethanol and biodiesel contents are expected for Canadian fuels.

 

There may also be specific incentives aimed at encouraging producer ownership within biofuels. Without direct producer involvement, producers will not reap the full benefits of the upcoming biofuel revolution.

 

This is a topic already scheduled for the Special Session of Saskatoon's Crop Production Week in January.

 

The Canadian International Grains Institute has an idea for another form of direct producer involvement.

 

This winter, CIGI will be setting up short courses for producers interested in producing their own biodiesel on a small scale.

 

Some say small-scale production won't be viable and that quality control will not be attainable.

 

Others believe the economics works and this will be a way for groups of producers to have some control over one of their main input costs.

 

In Ontario, a number of ethanol facilities are being launched.

 

In that part of the country, the hot issue will be imported American corn.

 

Ontario is already a net corn importer. Watch for farmer discontent as the inflow of American corn increases to meet the new ethanol demand.

 

Here in Western Canada, when you start doing the math, biofuels has the potential to dramatically change many facets of the agriculture within a relatively short period of time.

 

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Posted by Vince to Biodiesel News at 9/20/2006 05:38:00 AM

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