Farmers plan biodiesel plant to control own fuel needs

David Square, Winnipeg Free Press — 6 Sep 2008

BEAUSEJOUR -- A group of Beausejour-area grain producers is planning to build a biodiesel plant that uses canola oil, to take control of its fuel needs from big oil producers and help reduce farming's carbon imprint on the environment. "We have no security against market fluctuations because we depend on large corporations for diesel fuel. The cost of fuel goes up quickly but comes down slowly. In the future there may not even be a reliable source of diesel fuel," says Hans Muster, who farms near Beausejour.

Four years ago, Muster and three other farmers decided it was time to be in charge of their operations by forming Brokenhead River Biofuels Co-op Ltd.

Muster was appointed chairman as he had lived in Switzerland where biodiesel is commonly produced and used to power farm machinery.

He and two fellow farmers travelled to Europe, paying expenses out of their own pockets, to attend alternative fuel trade shows and to visit operating biodiesel facilities in Germany and Switzerland.

"It was time and money well spent," says Carl Bangert, vice-chairman. "The equipment and technologies for producing biodiesel were much better than those in Canada, where we could not find a plant that produced biodiesel that met government fuel standards."

Bangert says there are numerous unethical individuals and companies selling substandard biodiesel technology and equipment that is priced to sell but not to produce.

"It's a buyer-beware market where due diligence on behalf of the purchaser pays off," he says.

Brad Saluk, secretary-treasurer, says the co-op will purchase its Canola crushing machinery from Germany, where farmers are burning 100 per cent biodiesel in their machinery.

"At this time, we are considering either a Swiss firm or a U.S. firm to supply the equipment to refine the oil from the crushed canola," says Saluk.

After myriad meetings, miles of government paperwork, and the hectoring of naysayers, the nascent co-op was recently launched, attracting members by word of mouth and a mail-out flyer.

"The first farmers to sign up paid a $500 membership fee and invested $6,500 for a share," says Saluk. "Now that the groundwork is completed, the share cost is $13,000 for new investors, with membership remaining at $500."

Saluk says the co-op has close to $900,000 in the bank and expects the total cost of construction to be around $2.5 million, providing work for local contractors where possible, and at least two full-time jobs for plant operators.

To date, the co-op has 24 member-farms, including four Hutterite colonies, most within an eight-kilometre radius of Beausejour, where the plant will be built at the corner of Hwy. 44E and 12N.

Each member will deliver a sufficient number of bushels of canola to the processing facility to produce biodiesel to provide his farm's fuel requirements for a year, says Bangert.

"We will purchase two tandem trucks to deliver refined fuel to the farm gate free of charge," he says.

He estimates one bushel of canola yields eight to nine litres of biodiesel, which looks like extra light olive oil when refined.

The "green" fuel produces more horsepower and far less harmful emissions than ordinary diesel, thus reducing farming's carbon footprint, says Bangert, adding that engines burning biodiesel run quieter and last longer because it is a purer product.

Other environmental pluses include renewable electric power to operate the plant, no water requirement (ethanol production uses huge amounts of water) and 99 percent of production chemicals recovered and reused.

As well, a canola meal by-product leftover after crushing can be sold as feed for weanling pigs, chickens, hogs and other livestock, says Bangert.

Saluk says there is potential to pay off the cost of the plant in five to 10 years, with sales of canola meal paying for daily operations and employees.

"Down the road, I think each member will receive a dividend on top of his yearly fuel allotment," he says.

Groundbreaking for the plant is to take place this fall with operations beginning in the new year.

Category: Agriculture, Environment