Ontario Biodiesel Mandate at 3%

STREATOR, Ill. (DTN) -- Ontario's biodiesel mandate went into force Tuesday, April 1, in the Canadian province. The mandate requires all diesel fuel sold in the province contain at least 3% biodiesel.

In a news release issued Thursday by the Ontario Ministry of the Environment, the agency said the new rules will be in effect for three years.

By 2017, the amount of biofuel blended into regular diesel will ramp up to average at least 4%.

"Greenhouse gases must be reduced by at least 30% this year and 70% by 2017, for the biofuel portion of the new blend," the release stated.

By 2017, Ontario's new rule is expected to reduce greenhouse gas emissions by about 600,000 tons each year -- equivalent to taking 140,000 cars off the road.

"Greener diesel will also encourage investment at fuel terminals in Ontario and help expand market opportunities for agricultural-based feedstocks," the release said.

Home heating oils and aviation fuel are exempt from the new requirements and northern Ontario will be exempt from the new rules until 2017.

Three Ontario-based biodiesel producers had joined forces to form the Ontario Biodiesel Association in January to promote the production and use of biodiesel to coincide with the planned biodiesel mandate.

The three founding firms are Methes Energies Canada Inc., Great Lakes Biodiesel and Noroxel Energy Ltd with a combined biodiesel annual production capacity of more than 60 million gallons.

OBA members have invested more than $80 million in plant and equipment to produce biodiesel in the province.

(BM/CZ)

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