February 13, 2007 - PEACE REGION BIODIESEL STUDY RESULTS ANNOUNCED

A study by the B.C. Grain Producers Association (BCGPA) shows potential for a biodiesel production facility in the Peace Region.

The Biodiesal Feasibility Study, initiated in August 2006, was made possible by a
$75,000 grant from the Ministry of Agriculture and Lands and the Ministry of Energy, Mines and Petroleum Resources.

“We wanted to see if biodiesel production was a viable option for Peace canola growers, and it looks like it is,” said Irmi Critcher, president of the BCGPA.

“The results and opportunities outlined in the study have the potential to create a sustainable, environmentally friendly, agriculture-based energy project in the Peace.”
said Blair Lekstrom, MLA Peace River South. “Information like this will prove invaluable as we look to implement our Bioenergy Strategy.”

“The study shows us that the project has good markets for biodiesel and canola meal, potential marketing and distribution partnerships, good agronomics, and consultants and an engineering firm with excellent reputations,” said Garnet Berge, the Biofuels Committee Chair of the BCGPA.
The purpose of the BCGPA is to improve the viability of the grains and oilseed industry in the BC Peace River region. The association and its members partner with other agencies to benefit the field crop industry. The association encourages all farmers to participate within their industry so that their voices may be heard.

The Feasibility Study looked at the economic and environmental factors of locating a biodiesel production facility in the Peace Region. “If the project goes ahead, it will create 24 skilled jobs,” said Ron Witherspoon of the consulting firm Interactive Management Group, “and provide 56% greater economic benefit to the local economy if it is locally-owned.”

The federal government recently announced a $350 million fund for biofuels and more announcements are expected in the federal budget. “Once the federal budget is announced in a few weeks,” said Witherspoon, “we’ll have a better picture of the production facility’s potential.”

Interactive Management Group is a well-recognized group of consultants working for Canada’s agriculture industry. The firm provides a variety of interdisciplinary business services for new and expanding businesses. The experienced engineering firm R.L Stroup Ltd. has international experience in the oilseed crushing and biofuels industries. The firm is also the chief engineer on Dominion Energy’s $400 million project announced last year in Alberta — the biggest combination biodiesel and ethanol project in North America.

Biodiesel is a fuel made from biological sources such as canola oil or recycled grease that can be used in unmodified diesel-engine vehicles. Biodiesel can be used in 100% concentration, or mixed with diesel fuel. For example, fuel containing 20 percent biodiesel and 80 percent petroleum diesel is labeled B20. Pure biodiesel is referred to as B100.

Backgrounder
The study suggests that the best-sized plant for the Peace Region would:
• Produce 22.7 million litres of biodiesel (6 million U.S. gallons)
• Require 56,000 tonnes of canola, with the potential to expand (B.C. currently produces 45,000 tonnes per year, almost all of it in the Peace).
• Contribute $25 million to local economy annually
• Create 24 skilled jobs with an annual payroll of $1.7 million
• Pay farmer/shareholders a fair price for their canola, generate a positive return on their investment and generate $1.5 million per year in local, provincial and federal taxes
• Cost $22 million to build
• Be one of the most operationally efficient plants — designed to be one of the most environmentally-friendly projects in Canada (no chemical oil extraction processes)