Canadian Canola Growers Association. Ernie Doerksen, General Manager phone: (204)

Transcription

1 Canadian Canola Growers Association Ernie Doerksen, General Manager phone: (204)

2 Manitoba Biodiesel Advisory Council Assess industry awareness, develop consensus on actions to facilitate introduction of biodiesel I.D. industry and consumer issues related to biodiesel consumption I.D. barriers and recommend how to overcome Examine various feedstock opportunities

3 Manitoba Biodiesel Advisory Council Examine markets for co-products facilitating greater use of these Investigate various financial ownership models / options for MB based production facilities Provide recommendations within the context of minimizing impact on provincial treasury partner with feds and industry

4 Environment Feedstock Manitoba Biodiesel Advisory Council Industry and Consumer Issues Production Legislation and Regulation

5 What is biodiesel? Fuel for diesel vehicles made from plant or animal oils Currently biodiesel is canola oil methyl esters in Europe and soy oil methyl esters in North America.

6 Why Biodiesel? Diesels are efficient similar efficiency to fuel cells Ethanol is good but biodiesel is better 1 litre biodiesel = 2 litre ethanol Technology is available now Kyoto

7 Many Benefits of Biodiesel Lower emissions Biodegradable, non-toxic Renewable Fuel economy and power comparable to petroleum diesel Higher lubricity Works with existing diesel technology New industrial use for canola

8 Canola Seed Supply & Disposition, Thousand Tonnes 9, Canada , , , , , , , , f f Production Exports Domestic Crush Source: Cereals & Oilseeds Review Statistics Canada

9 Biodiesel Emissions Compared to Emission Petroleum Diesel B20 Unburned Hydrocarbon -11% Particulate Matter -18% Carbon Dioxide - CO 2-16% Nitrous Oxide - NOx +1% Carbon Monoxide - CO -13% Cancer Risk -27% Ozone Formation -10%

10 Life Cycle Assessment (LCA) for Biodiesel 1 : 3-4 Fossil Energy : Renewable Energy

11 Canola Flax Soy Tallow Tall oil Waste grease Process Biodiesel

12 Potential Biodiesel Production from Canadian Feedstock Sources 2007 to 2010 Source Tallow Yellow Grease Canola Soybeans TOTAL FORECAST Biodiesel Production 160 million litres 80 million litres 220 million litres 40 million litres 500 million litres

13 Biodiesel Feedstock Costs Yellow Grease Tallow Vegetable Oil Lard 16.5 cents / lb 23.0 cents / lb 29.5 cents / lb 32.0 cents / lb

14 Projected Cost of Biodiesel Using Various Feedstocks Yellow Grease Tallow Vegetable Oil 40 cents / litre 56 cents / litre 72 cents / litre Weighted average using Canadian sources: $ / litre

15 Incremental Cost ($/ L.) by Feedstock B1 B2 B20 Yellow Grease Tallow Vegetable Oil *does not include any tax on biodiesel portion of blend

16 Canadian Diesel Fuel Demand by End Use, 2000 Off Road Industry 18% Farm Use 14% Public 4% Commercial & Passenger Road 64%

17 Canola-Based Biodiesel and Prairie Demand Forecast for prairie diesel fuel demand in 2004 is 7.86 billion L At B2, biodiesel required = million L Approximately 650,000 acres of canola A 25 bu/ac. canola crop produces 250 litres of biodiesel.

18 Role of Biotechnology in the Future Next Generation of Canola Products: New varieties and oil profiles for nutritional changes Modified oil composition for functionality Better agronomics, disease/stress/frost resistance, etc.

19 Worldwide Fuel Quality Survey HFRR Lubricity Canada Hong Kong Japan Korea Singapore Taiwan Thailand Argentina Canada Mexico USA South Africa

20 Profit & Loss Statement (small) Production / year 500,000 L Sales Total $479,057 Annual Costs Total $286,183 Earnings Before Taxes (EBT) $192,874 Net Income (after tax) $154,299 Assumptions: Capital Costs $150,000 Feedstock Costs $0.40/Kg. Sales price $0.95/L.

21 Profit & Loss Statement (large) Production / year 8,322,000 L Sales Total $7,141,217 Annual Costs Total $3,670,501 Earnings Before Taxes (EBT) $3,470,716 Net Income (after tax) $2,117,137 Assumptions: Capital Costs $3,500,000 Feedstock Costs $0.40/Kg. Sales price $0.95/L.

22 What Needs To Happen Mandate: provincial / federal? Tax Relief - Provincial government Incentives - Federal government Production Technology - Agriculture Processing Technology - Industry Adoption - Transportation Industry

23 Simple Mandate for Biodiesel Inclusion Would accelerate the use of biodiesel immediately All costs passed to consumer Fuel companies would have to comply and distribute blended product Least cost product would be marketed HOWEVER, no restriction on sourcing may promote imports of finished product or cheaper feedstocks?

24 Thank you