MLR to build biodiesel plant in Canada

Energy company Maple Leaf Reforestation (MLR) is to open a biodiesel facility in British Columbia, Canada, using next generation feedstock.

In July, the Canadian government introduced a 2% biodiesel blending limit with diesel and heating oil, making it mandatory for all users. This is expected to create a new demand for about 0.6 billion litres of biodiesel next year.

In the US, 2% biodiesel blending is also mandatory and it is expected the market will grow by 4.6 billion litres by 2012.

MLR aims to tap into this market, using the yellowhorn tree as a feedstock, which comes from China and has a 7-11 times greater yield of oil for each acre planted, when compared to conventional oil seeds.

MLR says because biodiesel blending remains by and large expensive because traditional feedstocks such as rapeseed and soyabean do not give large oil yields.

A spokesperson for the company says: ‘In our opinion, MPE's cost per litre of biodiesel using Yellowhorn as feedstock may be up to 50% lower than that of competitors employing rapeseed - even after factoring feedstock shipping costs from China. We therefore believe MPE could be one of, if not the lowest cost biodiesel producer in Canada and the US.’

The company will need to raise C$3 million (€2.1 million) to get the project off the ground.