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Bio-fuels which is it

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    Bio-fuels which is it

    Back in Feb. Barb Isman from the Canola Council was handing out memory sticks with a letter to the P.M. Strahl and a bunch of others saying that we need parity with the U.S. And to get that we as farmers needed 10cents/litre for ethanol and .20cents for Bio-Diesel in this budget. I was to understand that that had happened and then I read this.
    What is the real story? What did I miss ?
    FROM the good morning prairies report

    Federal Aid Drop In Bucket, Says Bio fuel Sector

    Producers say the money won't mean much until the Canadian industry becomes more competitive with its U.S. counterpart, reports the Business Edge. For that to happen, they say, the federal government must match tax incentives now offered south of the border.

    "I'm not sure that that program is really worth anything unless we get tax parity with the States," says Tim Haig, CEO of Oakville, Ont.,-based BIOX Corp., which operates one of only two biodiesel plants in Canada. "It's kind of irrelevant."

    Haig, who is also vice-chairman of the Canadian Renewable Fuels Association (CRFA), says boosting supply is the key to raising demand, which will come primarily from vehicle-fleet operators.

    BIOX's Hamilton-based plant now sells its maximum of 60 million litres of annual biodiesel production exclusively to U.S. customers, because the firm can take advantages of tax incentives that total about US31 cents/litre.

    #2
    For biodiesel, the provinces are to come up with the remaining 10 to 12 cents and I'm not sure what Ontario's status is.

    Also in the incentive wording is a clawback in a few years that has yet to be fully defined and there are limits on profit.

    The US is simple, a buck a litre. Canada as usual is - well - wordy and complicated, not conducive to business.

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      #3
      wd9

      Biodiesel in the US is a buck gallon - not a litre if my memory is right. Have been corrected on this point myself.

      Comment


        #4
        wd9
        Any Idea on if the provinces are coming to the table with this incentive or do we now have to lobby them?

        Comment


          #5
          Even though this story came out after the budget, it refers only to the additional BOPI money for feasibility studies etc. The news story was written before the producer incentive was announced. I couldn't figure out the angle at first either.

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