Challenges and Opportunities for B.C. biofuels

November 13, 2024

Print This Article Share it With Friends

by Nelson Bennett (Delta Optimist) Biofuels' environmental and economic opportunities for Canada: C.D. Howe -- Canada is well-positioned to profit both environmentally and economically from a growing biofuel industry, but faces risks in scaling up biofuel production in a way that is sustainable and competitive, warns a new report by Werner Antweiler at the University of B.C.’s Sauder School of Business.

While biofuels can play a significant role in decarbonizing transportation, there can be negative environmental impacts and impacts on food production, Antweiler notes in a t for the C.D. Howe Institute.

On the other hand, biofuels could benefit farmers in the prairie provinces with the production of energy crops, like canola, on marginal farmland, foster new biofuel refining businesses, such as the Tidewater Renewables refinery in Prince George, and make significant emissions reductions in transportation.

Biofuels can be made from food crops, like corn, animal fats, biological waste, and non-food crops such as wood waste.

Antweiler notes in his report that biofuels production can “either shift or increase the use of agricultural land, which can have negative impacts, including deforestation, which can shrinks natural carbon sinks. Expanding frontiers of agricultural production can also develop new land conflicts with local or Indigenous communities.

“On the upside, it creates a new market with new employment opportunities and potential for economic growth, and it can help reduce carbon dioxide emissions. It can also improve Canada’s energy security and stabilize energy prices.”

Biofuels could provide prairie farmers with new markets for energy crops such as canola, which can be grown on more marginal farmland.

Antweiler noted that China is a major importer of Canadian canola oil, but increasing trade restrictions could result in the loss of that market.

“Canola imports that Chinese have from Canada are under the highest threat of retaliation, and so developing a new market for canola that is domestic would really help the industry make sure that they’re not at the vagaries of trade retaliation,” he said.

...

A number of new biofuel refineries are either being built or planned in both B.C. and Alberta.

Imperial Oil is building a $720 million renewable diesel refinery in Edmonton at the Strathcona refinery that will use canola, soy, sunflower oils and hydrogen -- produced from natural gas with carbon-sequestration facilities -- to make renewable diesel.

In Prince George, Tidewater Renewables has built a new refinery that will make renewable diesel from canola, tallow and tall oil (a byproduct of kraft pulp making).

...

Parkland Fuel Corp. (TSX:PKI) also has a small biofuel facility that makes its fuel from products like animal waste.

...

Antweiler said policy harmonization between the U.S. and Canada, and within Canada as well, will be needed to support Canada’s biofuel industry.

Because of the oversized impact biofuels could have as a climate action tool, it’s important that the low carbon and clean fuel standards that have been adopted federally and provincially not only be maintained, but harmonized.

In the lead-up to the recent provincial election in B.C., B.C. Conservative Party Leader John Rustad pledged to scrap not only B.C.’s carbon tax, but its low carbon fuel standard, as well.

Antweiler said he hopes federal Conservative Party Leader Pierrie Poilievre will have “a more nuanced view” of these policies than Rustad. READ MORE

Tags

2024 Election tax policy carbon tax Clean Fuel Standard/Policy (CFS) Transportation Fuels Policy--State Transportation Fuels Policy environmental policy tall oil tallow Renewable Diesel/Green Diesel/HVO/Paraffinic Diesel Hydrogen/Renewable Hydrogen sunflower soybeans Trade Policy China import/export market forces markets/sales energy independence energy security Native American/American Indian/First Nation Tribes land use policy land use land use change forest residue/waste woody biomass animal fat corn/maize marginal land Canola/Rapeseed Biofuel Crops energy crops defossilization LCFS (Low Carbon Fuel Standard) Sustainability Green Jobs BioRefineries/Renewable Fuel Production Alberta British Columbia Canada

Comments are closed.