Benefits for Canada

As of July 2012, all diesel fuel sold in Canada must contain 2% biodiesel.

We can fuel the growth of Canadian jobs and communities by making that biodiesel right here, instead of importing it from the U.S.

This new industry can benefit:

  • Our economy as a whole
  • Agricultural producers
  • Rural communities

And the benefits can be realized quickly. A 110+ million-litre biodiesel facility can be constructed in less than two years.

Good for our economy

  • Every $1 invested biodiesel infrastructure returns $2 of economic activity in construction and supporting industry.
  • Substituting 5% of the diesel we use today with domestically produced biodiesel could generate $600 million in capital expenditures and more than $1.1 billion per year in additional farm income.
  • Co-products like meal and glycerin could generate additional business opportunities. Canola meal is an important protein source for livestock feed, and glycerin can be used in the in food and beverage industries, cosmetic and pharmaceutical processes and animal feed.
  • Research and development opportunities would grow.

Good for agricultural producers

  • A bigger domestic market for canola would stabilize demand, which would in turn help to stabilize prices for canola growers.
  • More seed crushing in Canada means a larger domestic supply of canola meal. This high-protein livestock feed can replace more expensive imported protein meal in dairy and hog rations. 
  • Farmers would gain new opportunities to diversify and stabilize their incomes by investing in the industry. They could become partners or investors in facilities for feedstock preparation and biodiesel production.

Good for rural communities

  • Production facilities would locate near canola growing areas – bringing new industry to rural communities in Western Canada.

Case Studies

Using 1 million tonnes of carryover canola seed for biodiesel could generate:

  • 500 million liters of biodiesel feedstock
  • Over $200 million in additional gross farm revenue
  • 500 new jobs in the biodiesel industry 
  • Over $165 million of capital expenditures
  • $1.8 million in annual operating revenues

Source: Canadian Bioenergy Corporation, “Developing a Canadian Biodiesel Industry”, 2005

Every $100 million* in additional demand for canola could generate:

  • 730 direct jobs in value added industries
  • $83 million in GDP    
  • $5.2 million in tax revenue (federal, provincial)

*450,000 tonnes at current cash prices ($222 per tonne)
Source: M Goodwin Consulting Ltd., “Canola Socio-Economic Value Report”, 2006

In 2002, more than 189 million litres of biodiesel were sold in Germany. The economic impacts throughout the value chain included:

  • $703 million in employment income
  • 18,230 new jobs
  • $273 million in new state taxes
  • $747 million in infrastructure investments
  • Co-production of 86,000 tons of pharmaceutical grade glycerin
  • $70 million reduction in farm subsidies formerly used to support exports
  • Substitution of 1.0 million tons of imported soy meal with high protein rapeseed meal

Source: Institute for Economic Research, “Macroeconomic evaluation of rape cultivation for biodiesel production in Germany”, 2002
All numbers in Canadian dollars