Biofuel Subsidy

[ianben]

As an oil producing country I think you must realize government green poiicy is just retoric. They would be taking a pay cut on lost taxes and royalties the oil industry generates.

In the UK we have tax rebate on green fuel set just below level which would stimule biofuel industry. We have mandatory green fuel but hidden in the small print a 15p/l buy out for the oil companies.

US and Germany with imported oil and high farm subsidies have totally different economics when useing home produced greeen fuels.

These economics might yet help us have an biofuel industry.

Byproduct value !!!

Germany has too much **** meal from its bio-diesel production so we are getting plants built here just so the ****meal is used in UK

The byproduct from all those ethanol plants in US must overload their market also.

If you can use the byproduct I think you will have an bio fuel plant.

[kamichel]

Currently there are biofuel plants being built and all the ethanol plants that I know are running at capacity. Canada has been currently shipping canola oil into europe for diesel. Also selling Canola to Pakistan, Dubai, and China to be crushed and excess oil moving on to Europe as they need the meal. So if that is profitable then making the biodiesel right here and shipping the fuel into Europe should be better. So we are still doing good here just maybe a little behind the times because of our supply of fossil fuels.
I don't think it would be in any countries best interest to subsidize a dollar a gallon to go to export.
Done some checking. The USA has a tarrif on imported ethanol of 54 cents per gallon. They also have a tax credit for blending ethanol of 51 cents per gallon. So if this is the subsidy then only the 51 cents per gallon should be what we need to worry about. Still a lot. The tarrif is set to expire in 2009 and the tax credit to expire in 2010.
Last week The USA National Cattlemans Ass. adopted a tentative resolution calling on congress to let current tarrifs on import ethanol expire. Also the National pork production councill is asking for a level playing field stating free markets should determine supply and demand. Domestic livestock uses half the supply of corn in the USA.

[wd9]

It isn't just about ethanol. BD is buck a gallon.

Karmichel, what are some good reasons for not having value added done here in Canada? That seems to be your position, I'd like to know why it is a good idea in every other country, but not Canada.

[kamichel]

Is there not plans for the construction of 3 biodiesel plants in Alberta right now with the first to start this summer. I am not against value adding as I am growing 1500 acres of Andrew wheat this year and likely all of it will go into domestic value added business of some sort. All my canola is IMC with Cargil and 100 percent of that will be crushed at the Cargill facility at Clevet. The other crop yellow peas I am unsure of yet but there is contracts of 4.75 picked up for number 2 grade human consumption that would likely be for export, it will need domestic cleaning and bagging here.
I am not saying that we should not have value added businesses here. My view is that the value added biofuels market is thriving. biodiesel is good for the engines in our tractors, trucks, combines etc. I don't care paying more for a biodiesel blend that is better for the environment and my engines and my grain prices. If I had to rebuild one of the engines in my truck tractor it would cost me more than I paid for the truck tractor.

[wd9]

Keyword is planned. Awaiting the budget anouncement, which is why it is key.

[kamichel]

Milligan Biotech from Foam Lake is the only company expanding its biodiesel crushing and refining facility that I know of in Canada. They will have a capacity of 35 million liters per year.

[wd9]

There are 2 in Hamilton, Biox and one other. All there production goes into the US in the pick a buck program.

Last year Canada spent around 2.7 billion on farm programs. Spending 125 million on tax parity with the US and the net benefit shouldn't be too far out there in terms of economic investment. Also, no payment for a year and a half at least.

No brainer, tell your MP to get off their duff and make sure it is in the budget.

[FarmRanger]

wd9 is right, without the incentives, nobodies going to build biodiesel plants in Canada and we'll all be poorer for it. Phone your MPs office and let’s get ‘er done.
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