Grainswest Tech 2021

Tech 2021 Grains West 40 BY MELANIE EPP • GRAPHIC BY VECTEEZY.COM WILL BIOFUELS BENEFIT FARMERS? s the world moves toward net-zero emissions by 2050, the use of lower carbon and non-emitting fuels is expected to ramp up. The Clean Fuel Standard (CFS) provides significant opportunities for western Canadian farmers, as demand for several crops will increase with the growth of the biofuels market. However, if implemented poorly, CFS could negatively impact farms across Canada. Concerns around land-use criteria, increased input costs and loss of competitiveness on the global market must be addressed. WHAT IS THE CLEAN FUEL STANDARD? The CFS is a proposed regulation that will require liquid fossil fuel suppliers to A Clean Fuel Standard generates mixed response make the fuel they produce or import for use in Canada cleaner and generate less pollutants. In doing so, they will be an important component of Canada’s greenhouse gas emissions reduction initiatives. The CFS builds on current federal and provincial renewable fuel regulations. Taking a lifecycle approach, it accounts for emissions associated with all stages of fuel production and use from extraction through to processing, distribution and end-use. It will require liquid fuel suppliers to gradually reduce the carbon intensity of the fuel they produce, and is expected to yield a decrease of approximately 13 per cent in overall carbon intensity by 2030. To speed the transition, the Canadian government has extended support through a series of investments and initiatives that complement the CFS regulation. The government, for instance, recently invested $1.5 billion in a low-carbon and zero-emissions fuels fund, which will be used to support domestic production of low-carbon fuels such as hydrogen and biofuels. Final regulations are expected in late 2021. If all goes as planned, CFS will come into force in December 2022. Mark Johnson, spokesperson for Environment and Climate Change Canada (ECCC), said the CFS represents an economic opportunity for Canadian farmers. The canola sector, in particular, has identified domestic biofuels opportunities as an important element of market diversification, he said. There are signs of growing interest in biofuels production in Canada, said Johnson. He pointed to Saskatchewan- based Covenant Energy, which recently announced its intentions to build a renewable fuel processing facility in southern Saskatchewan. In a recent press release, the company said it plans to produce 6,500 barrels a day and maintain 300 to 325 million litres per year of production capacity that will create demand for 35 million bushels of canola seed. This facility would be the first stand-alone hydrogenation-derived renewable diesel production plant in Canada. Company officials have said the CFS is a key driver of the project. In Alberta, Project Wheatland, a $470 million wheat-based biofuels facility is expected to drive demand for feed wheat as well. It received $5 million in funding from Emissions Reduction Alberta (ERA). The group helps the province deliver on its environmental and economic goals by investing in clean technology solutions that reduce greenhouse gases. The state-of-the-art Wheatland facility is expected to open its doors in September 2022, although this seems somewhat ambitious given construction is not far along, said Steve MacDonald, ERA chief executive officer. FEATURE PART TWO OF A THREE-PART SERIES ON CARBON ISSUES IN FARMING