Biodiesel in Saskatchewan: 2% mandate comes into effect on July 1, 2012 - 13 cent incentive program now available in the province - Biodiesel industry in Saskatchewan expects significant growth

Saskatchewan’s renewable diesel mandate will come into effect on July 1, 2012 and will establish an average of 2% renewable content in diesel fuel sold in the province. Renewable diesel or biodiesel is a diesel fuel substitute made from renewable materials, including vegetable oil, waste cooking oil, animal fat and fish oil or feedstock from agricultural or forest biomass. The use of renewable diesel in Saskatchewan has the potential to reduce greenhouse gas emissions equivalent to taking 5,000 cars off the road annually. There will be an average-based system that will have a compliance period that extends until December 31, 2014. The mandate does not apply to diesel marketed in Northern Saskatchewan or to aviation fuel.

"The new mandate was developed in consultation with the industry," Saskatchewan Economy Minister Bill Boyd said. "To support the mandate, our government introduced the Renewable Diesel program in the 2011-2012 Budget which provides incentive for the production of renewable diesel in the province. The new Saskatchewan mandate will ensure participation and count toward compliance under the national mandate," Boyd said. "There is an emerging market for new fuels, it's good for our environment and at the same time benefits our economy."

Organizations currently active in the biodiesel industry in Saskatchewan include the following:

1. Canadian Renewable Fuels Association
2. Saskatchewan Canola Development Commission
3. Milligan Biotech
4. Mustard Products Technologies
5. General Bio Energy Inc.
6. Saskatchewan Research Council
7. HINBEN AlgaeGlobal Saskatoon
8. SFN Biosystems Inc.
9. Yellow Gold Energy Ltd.

The Saskatchewan Renewable Diesel Program supports production of biodiesel in Saskatchewan and will provide an incentive of 13 cents CAD per litre to qualifying producers in Saskatchewan for use in all diesel fuel applications. The incentive program is effective April 1, 2011, and terminates March 31, 2016.

The program provides the 13 cent per litre incentive for renewable diesel produced at facilities located in Saskatchewan, sold, and delivered; delivery must occur during the period to which the incentive relates. Renewable diesel which has been toll processed at a facility in Saskatchewan is also eligible under the program. Volumes will be reported on a 100% renewable diesel (also called B100 or "neat" renewable diesel) basis and volume corrected to 15 degrees Celsius. The program is capped to support the annual production of 40 million litres of renewable diesel, about the amount used to meet the two per cent Saskatchewan mandate. The producer must deliver a minimum of 500,000 litres of eligible renewable diesel in a fiscal year (April 1 to March 31 of the next year).