Biofuels

Biofuel production is providing direct benefits to Manitoba farmers and reducing our dependence on imported fuel. The economic activity of Manitoba’s new ethanol and biodiesel industries is expected to surpass $100 million and reduce imports of fossil fuels by a comparable amount.

In addition to the environmental benefits of cleaner-burner fuels, this exciting sector will continue to be a driver for rural economic development as well as providing economic benefits for the province as a whole:

• stabilizing agricultural income
• creating alternative markets for agricultural products
• stimulating sustainable economic development and job creation in rural areas
• reducing the flow of money out of the province for refined petroleum products

Ethanol

Ethanol is an alternative fuel produced from grains which can be blended with gasoline to reduce greenhouse gas emissions. Ethanol produced by Husky Energy’s Minnedosa plant has as much as 25 per cent fewer greenhouse gas emissions than an equivalent amount of gasoline. Manitoba has mandated that 85 per cent of gasoline sold in Manitoba must be formulated with 10 per cent ethanol as soon as local production grows to meet demand. This initiative is expected to reduce GHG emissions by 150,000 tonnes annually.

Husky Energy’s Minnedosa plant has been producing 10 million litres of ethanol annually since the 1980s. The mandate and tax incentives have led to Husky’s decision to build a new plant on the site, which will increase capacity to 130 million litres by the end of 2007 – an amount equivalent to nearly one million barrels of imported oil.

Biodiesel

Biodiesel is a cleaner-burning diesel replacement fuel made from natural, renewable sources such as vegetable oils, animal fats or recycled cooking greases. In Manitoba, off-grade canola may become the primary feedstock.

Biodiesel is safe, biodegradable, and reduces serious air pollutants such as particulates, carbon monoxide, hydrocarbons, and other air toxins. Blends of up to 20 per cent biodiesel mixed with petroleum diesel fuels can be used in nearly all diesel engines.

In 2005, Manitoba eliminated the 11.5 cent per litre road tax on pure biodiesel (B100). Combined with the removal of the 4 cent per litre federal excise tax, this results in a 15.5 cent per litre saving over regular diesel fuel. In 2006, Manitoba also removed all taxes on the biodiesel portion of blends with diesel fuel.

Bifrost Bio-Blends in Arborg is the first plant in Manitoba to produce biodiesel fuel. In June 2005, Manitoba Hydro announced it would purchase 50,000 litres of this Manitoba-made biodiesel to fuel its fleet vehicles. Initial results have demonstrated cost savings, emission reductions and enhanced engine performance.

Landfill Biogas Capture

Methane from rotting organic matter in landfills is a major source of greenhouse gas emissions. The Province has studied with Manitoba Hydro and the City of Winnipeg how to capture, manage and harness the biogas resource from the Brady Landfill site. This initiative could reduce emissions by 350,000 tonnes per year. Landfill gas can be used as a fuel for electricity generation, transportation or a variety of industrial processes.

Farm Anaerobic Digesters

Anaerobic digestion is a process in which bacteria break down manure components to produce biogas. Anaerobic digestion can potentially:

• reduce greenhouse gas production
• improve nutrient management in the waste-water stream
• reduce odour and pathogen levels in manure while improving its fertilizer value
• produce renewable energy which can be used as a heating source or for the generation of electricity

Increased support for anaerobic digesters will be provided for pilot projects in emerging technology used in manure management processes. In addition, enhanced tax credits for anaerobic digesters will help defray the costs of the technology.

A recently announced program will provide $300,000 to support the construction and feasibility assessment of anaerobic digesters at three Manitoba hog operations – Cook Feeders in Teulon, Topeaka Farms in Grunthal and Riverbend Colony near Carberry. Each operation will receive $100,000 over two fiscal years, starting in 2007. The provincial contribution will help fund the testing of each system to determine the overall environmental, technical and economic feasibility of different anaerobic digestion processes for various types of hog operations.

Please visit Manitoba Energy Development Initiative for more information.

Additional Resources

Manitoba Green and Growing

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