Biofuel industry receives support from Canadian Senator

February 12, 2014, Ottawa, Ont. – A Canadian Senator has
made a public statement in session to show support for the country’s biodiesel
sector.

The Honourable JoAnne L. Buth made the statement in the
Senate on Tuesday in support of the development of the biodiesel industry in
Western Canada, citing the opening of the Kyoto Fuels facility in Lethbridge,
Alberta and the Archer Daniels Midland Company plant in Lloydminster.

The statement also discussed the positive benefits of
biodiesel fuel as part of the Canada’s fuel mix, as well as the economic
developments created by the expansion of the biodiesel industry in this
country.

Below is a full copy of the text of the Senator’s comments
as provided on the government’s website:

SENATORS' STATEMENTS

Biodiesel Fuels

Hon. JoAnne L. Buth: Honourable senators, I rise today to
draw attention to developments in our country's biofuels sector. The first
large-scale biodiesel plants in Western Canada are officially up and running.
Facilities in Lethbridge and Lloydminster are using canola oil as their primary
feedstock for conversion into biodiesel. The advanced facility in Lethbridge,
run by Kyoto Fuels Corp., is also equipped to process other crops, as well as
animal tallow, into biodiesel fuel.

Biodiesel is a cleaner, more sustainable form of energy than
other non-renewable resources. Compared to petroleum diesel, the use of
biodiesel can reduce greenhouse gas emissions by up to 99 per cent.

[Translation]

The biofuels produced by those facilities will be sold on
the North American market, including by Canadian oil and gas companies.

[English]

While both facilities in Alberta have a major impact on the
biofuels sector, the plant in Lloydminster, run by Archer Daniels Midland
Company, better known as ADM, has the capacity to produce a substantial 265
million litres of biodiesel per year. This makes it the largest biodiesel plant
in Canada. Nearly all biodiesel demand was previously met by imports. Canada
has a 2 per cent renewable diesel mandate. That mandate requires that over 500
million litres of biofuel be blended into the national fuel pool. These new
facilities in Alberta will be able to produce enough fuel to meet over half of
our mandated requirement and, in doing so, lower our dependence on imported
biodiesel from the United States.

On a national scale, the entire renewable fuels industry
contributes $3.5 billion to the economy. These facilities provide vast economic
benefits to Western Canada specifically, which can be seen all throughout the
production chain. The facilities require canola seed from hundreds of thousands
of acres of farmland, making available a larger and more diverse market for
growers. Ultimately, the enhanced biofuels sector has created thousands of jobs
and serves as a driver of economic activity in Western Canada.

Honourable senators, with these new facilities up and
running, we can expect additional economic and environmental benefits from our
agricultural sector for years to come. Thank you.