By Alice McFarlane

Proposed canola-based aviation fuel plant in the works

Nov 24, 2022 | 4:16 PM

MELFORT, Sask. – An Alberta company wants to build a plant that would use canola oil in the production of aviation fuel.

Reconciliation Energy Transition develops energy projects with Indigenous equity ownership. The company is talking to agriculture and energy companies about investing in the $600 million project.

SaskCanola executive director Tracy Broughton said the proposal would expand markets for prairie farmers.

“I think any domestic market opportunity for our farmers is a really great opportunity for diversification of the canola industry,” Broughton said. “I know 90 per cent of our canola grown in Western Canada is exported, so any opportunity for it to be processed here on the prairies helps to reduce some of the risks that might come with trade.”

The Clean Fuel Regulations require liquid fossil fuel primary suppliers to gradually reduce the carbon intensity of the gasoline and diesel they produce and sell for use in Canada.

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Broughton said canola is an excellent feedstock for clean fuel.

“It’s such a sustainable crop and the technology allows for renewable diesel now to be inserted into regular diesel without any kind of additives or anything. It’s basically the same type of fuel,” she said.

A final decision on the proposed aviation fuel plant from canola oil is expected by next summer. Broughton said it demonstrates the level of demand that has increased in the canola industry in the last number of years.

“I’ve been working with the canola industry for over a decade and the production has doubled,” she said. “There definitely is enough supply out there to be servicing these local markets.”

Initial reports indicate the first plant would be built near Calgary with the possibility of a second plant in Saskatchewan.

Broughton said any processing in the province helps to reduce some of the risks farmers face.

“With Saskatchewan being a landlocked province it’s always great to have processing right here so that farmers can truck their canola to the plant and then it gets processed,” she said. “Our farmers rely a lot on rail service and as we know that has been somewhat unpredictable for a number of years.”

In Saskatchewan, there are roughly 10 million acres of canola grown in any given year.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW