by Kevin Hursh
In its 2006 budget, Manitoba has eliminated all provincial taxes on pure biodiesel produced within the province. This more than doubles the provinces tax incentive to spur biodiesel production.
The province is no longer collecting the road tax and provincial sales tax on pure biodiesel that meets the American Society for Testing and Materials fuel quality standard. Manitoba says the incentive will remain in place for five years to give the industry time to grow.
The removal of the taxes provides an 11.5 cents per litre advantage over regular diesel and is in addition to the four cents per litre tax break offered by the federal government. The tax advantage applies to the biofuel portion of biodiesel blends.
As part of its biodiesel action plan, Manitoba is working on the establishment of a biodiesel fuel quality testing centre. As well, it is studying the feasibility of using specified risk materials (the components of livestock remains that are restricted due to BSE) for the production of biodiesel.
Biodiesel is made from vegetable oils (canola oil is preferred due to its superior cold flow properties), as well as animal fats and/or waste restaurant grease.
There are currently two pre-commercial biodiesel production facilities in Manitoba – Bifrost Bio-Blends in Arborg and Celtic Power in Rapid City.
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This is good news. It isnt directly aquaculture related, it is however an important step in support of sustainable farming and resource developments. It will be a hugh step for agriculture if someday we do see biodiesel made from using specified risk materials
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