Adding biodiesel to Canada’s existing fuel storage, blending and distribution infrastructure could spur a host of problems for the country's distillate market, the Canadian Trucking Association said.
A CTA-commissioned report identifies issues with Prime Minister Stephen Harper’s proposed mandate to add biodiesel to all on-road fuel, a regulation CTA has consistently lobbied against since the government first proposed the rule.
The report cited the following issues, CTA said:
• Storage: Because biodiesel is not compatible with certain materials, has a high solvency rate and must be free from water, a dedicated storage tank system will have to be created in the various regions, and tanks will have to be heated to prevent biodiesel gelling.
• Blending: The choice of blending technique used to achieve a desired biodiesel blend has important implications with respect to product quality, particularly in cold weather. In-line blending at the terminal rack (into a tanker truck) is the best way of producing a biodiesel blend. But most Canadian terminals are currently not likely to be equipped with such equipment.
• Transportation: In western and central Canada, pipelines are the principal method of transporting petroleum product. Biodiesel cannot be pipelined because of cross contamination concerns. This will mean a much greater reliance on insulated heated tanker trucks, rails cars or marine tankers to move product normally moved by pipeline. Furthermore, tanks used to transport biodiesel will have to be either totally or partially dedicated to moving this product alone.
The report, written by MJ Ervin and Associates, also says that the fuel industry may address these issues, but CTA said it needs more assurance.
