Regina, Saskatchewan – A new renewable diesel program has been launched by the government of Saskatchewan as part of its 2011-2012 provincial budget.

Renewable diesel is a fuel substitute made from materials that include biomass feedstock from agriculture and forest biomass. Agricultural producers in Saskatchewan will benefit by having a new market for off-grade canola that can lead to value-added business opportunities.

“Saskatchewan farmers will benefit from a renewable diesel program by providing alternative markets for their products,” said Enterprise Minister Jeremy Harrison. “This will stimulate value-added production and create jobs in Saskatchewan and ensure a Saskatchewan market for diesel from canola.”

The five-year, $26 million program will provide a grant of 13 cents per litre to eligible renewable diesel producers. The program will run from April 1, 2011 and wind up in 2016, with a two per cent renewable diesel mandate coming into effect on July 1, 2012.

“This is a big development for biofuels in our province and was recommended by the Enterprise Saskatchewan Board of Directors and sector team,” Harrison said. “Saskatchewan agricultural products being refined by Saskatchewan industry, providing an end product that will be used by the people of Saskatchewan.”

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