The Government of the Saskatchewan launched a new renewable diesel program as part of the provincial 2011-2012 Budget.
The five-year, $26 million program will provide a 13 cent per liter grant to eligible renewable diesel producers. The program will begin on 1 April 2011; and a 2% renewable diesel mandate comes into effect on 1 July 2012. The program will wind up in 2016.
Renewable diesel is a diesel fuel substitute that is made from renewable materials that include biomass feedstock from agriculture and forest biomass. Agricultural producers in Saskatchewan will benefit by having a new market for off-grade canola.