Thank you.
Good morning. My name is Brian Chorney. I'm vice-president of the Canadian Canola Growers Association and I'm a farmer from East Selkirk, Manitoba. I am here today as a member of the Grain Growers of Canada.
We support Bill C-33, and I would like to focus on the biodiesel aspect of renewable fuels and why we need Bill C-33.
This legislation will provide provisions for the regulation and renewable content in diesel fuel, and it is required to create the market for biodiesel. Biodiesel is good for the environment, good for investment opportunities, good for rural development, good for value-added and the diversification of markets. This legislation, in conjunction with other government programs, will allow primary producers the opportunity, if they so desire, to become involved in a value-added opportunity.
Canola will be a key feedstock for producing biodiesel. Canola-based biodiesel has excellent cold flow properties due to canola oil having the lowest saturated fat content of any other feedstock--which is an important consideration given the cold weather Canadian climate. It exhibits good oxidative stability and a very positive energy balance, and it can meet both the U.S. and EU quality standards.
I don't have a copy with me, but Don O'Connor did a good job of reviewing energy balances at the CRFA convention in Quebec city in December, and I would like to refer the committee to his presentation. There are many energy balance studies out there, all of which are very positive for biodiesel, but that will give you a very good background on energy balance calculations.
I could go on and on about the benefits of canola-based biodiesel, but I want to express two key points in my presentation to you today: one, we want a renewable fuel standard for diesel fuels set at 2% by 2010, increasing to 5% by 2015; and two, farmers in Canada will be able to supply the feedstock necessary.
The first one is self-explanatory, so I will expand a bit on how we plan to have canola meet the new demand for biodiesel. A 2% inclusion will require about 1 million tonnes of canola and a 5% inclusion will require about 2 million tonnes to 2.5 million tonnes of canola.
Can we do it? The answer is yes, we can.
We have historically had a canola carry-out of anywhere from 1 million tonnes to 3 million tonnes, so a substantial amount could be covered by our excess production. However, we know that we can't run an industry on a zero carry-out, so in addition, we foresee advances in technology increasing canola supply, particularly the higher-yielding varieties.
We are just in the process of using hybrid seed varieties, and the genetic potential is enormous. Yields per acre are increasing substantially, and canola production will continue to grow as farmers switch to the new hybrids. In addition to higher yields per acre, we see a potential for increased acreages of canola, as drought-tolerant varieties could significantly expand the growing region in Canada.
Finally, we see agronomic improvements in planting and harvesting technologies, which can have a tremendous impact on yield and quality--i.e., oil content. Pod shatter-resistant varieties will also increase harvested yields.
Our canola industry has set a target of 15 million tonnes of production for 2015. We are confident that we can achieve that. As part of this strategy for production, we are relying on the Canadian biodiesel market to create new demand for our seed. The potential is there. We need to seize the opportunity and make it happen now. To do that, we need Bill C-33 enacted and the renewable diesel fuel standards--at 2% for 2010 and 5% for 2015--put in place.
Thank you for the opportunity to appear before the standing committee today.