Biodiesel Office

What is Biodiesel?

Biodiesel is a safe, non-toxic and biodegradable fuel typically made from vegetable oils or used cooking oils. Biodiesel can be used in its pure form or blended with conventional diesel at various levels with little or no engine modifications.

Biodiesel is the single, most effective greenhouse gas (GHG) reduction technology that exists for diesel engines today. In Manitoba, the combined transportation and agriculture sectors produce approximately one-third of the province’s GHG emissions.

Manitoba’s Biodiesel Policy

Manitoba’s Biofuels Act establishes the legislative framework for establishing a biodiesel sales mandate, licensing biodiesel manufacturers and adopting biodiesel fuel quality standards.

The Biofuels Act

Manitoba’s Biodiesel Mandate – Leading the Country

Manitoba is the first province in Canada to implement a law requiring biodiesel in its diesel fuel. Manitoba’s biodiesel mandate will start November 1, 2009.

First Biodiesel Mandate In Canada Now In Effect In Manitoba
November 2, 2009

Manitoba Leads the Way with Biodiesel Mandate: Rondeau
September 10, 2009

The mandate will require fuel suppliers to blend 2% biodiesel in their overall sales of on and off-road diesel fuel. The 2% blend percentage is based on an average. Suppliers have the flexibility to blend other percentages of biodiesel to meet the 2% target. For example, it is anticipated that 5% biodiesel blends will be used on a seasonal basis during the summer months.

At a 2% average, it is expected that Manitoba will use at least 20 million litres of biodiesel per year.

Biodiesel Mandate for Diesel Fuel Regulation

Licensing and Fuel Quality Standards

Licensing biodiesel manufacturers and maintaining the integrity of the fuel supply through the adoption of recognized fuel quality standards are key components of Manitoba’s biofuels program.

Details of the licensing and reporting requirements for biodiesel manufacturers, as well as the fuel quality standards, can be found in the regulations.

Biodiesel (General) Regulation

Fact Sheets

Biodiesel Fuel Quality and Engine Warranties
Biodiesel Cold Weather Properties
The Environmental and Health Benefits of Biodiesel
Biodiesel GHG Emissions
Biodiesel: Food vs. Fuel

Frequently Asked Questions

Biodiesel Manufacturers
Biodiesel Fuel Quality Standards
Biodiesel Sales Mandate

Forms

Click here for application forms for biodiesel production licenses and for annual production reporting.

Incentives

Provincial Tax Exemption under The Motive Fuel Tax Act

Manitoba announced in its 2006 Budget that effective March 7, 2006, for a five year period ending March 31, 2011, Manitoba-produced biodiesel would be exempt from the motive fuel tax. Only biodiesel that meets the American Association for Testing and Materials (ASTM) D-6751 standard qualifies for the exemption.

On biodiesel blends (less than 100% biodiesel), only the diesel fuel portion of the blend is subject to motive fuel tax. For example, if 100 litres of B20 (20% biofuel and 80% diesel fuel) are purchased, motive fuel tax only applies on the 80 litres of diesel fuel included in the blend and the 20 litres of biodiesel is exempt.

The government intends to replace the tax exemption in the spring of 2010 with a 14 cent/litre product ion grant payable directly to Manitoba biodiesel producers. The proposed new incentive will run for five years.

Federal Production Incentive under the ecoEnergy for Biofuels Program

This federal program administered by Natural Resources Canada provides an operating incentive directly to producers of renewable fuels such as biodiesel and ethanol. The incentive is designed to assist industry reach up to a 20% rate of return.

Biodiesel Resources

Click here for more information on the biodiesel industry and for information on the storage and handling of biodiesel blended fuel.

Contact Information

Manitoba Science, Technology, Energy and Mines
Energy, Climate Change & Green Strategies Initiatives
12th Floor, 155 Carlton Street, Winnipeg, MB R3C 3H8

In Winnipeg, call 945-7392
In Manitoba, call toll free 1-866-444-4207

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