Showing posts with label biofuel. Show all posts
Showing posts with label biofuel. Show all posts

Canada's Mystery Biodiesel Train

As reported by CBC News, between June 15 and 28, 2010, biodiesel tanker cars have been sent back and forth numerous times between Canada and the US by CN Rail but were never unloaded. Ostensibly the purpose of these mystery rides may be attributable to efforts to benefit from incentives offered by Natural Resources Canada's $1.5-billion biodiesel program.

According to leaked internal CN documents, the rail company stood to make $2.6 million for the effort. Each shipment generated bills of lading, customs import and export forms that suggest total biodiesel shipments of 1,984 cars — which, taken together, would be valued in the hundreds of millions.

An Email from Teresa Edwards, CN’s manager of transportation for Port Huron/Sarnia stated 'If we can get in more flips back and forth we will attempt to do so. Each move per car across the border is revenue generated for Sarnia/Port Huron.' The email also says that this movement “has the potential to make a lot of money for CN so need everyone’s assistance to maximize the number of trips that we make and ensure that it all moves smooth.”

According to internal CN records, Train 503 shipped the biodiesel to Port Huron, Mich., from Sarnia, Ont.; Train 504 brought them back. These back and forth train journeys generated an entirely unnecessary carbon footprint.

The US biodiesel companies listed as customers were HeroBX and Northern Biodiesel. Northern Biodiesel did not answer calls from CBC, and it is unclear whether it is still operating as a business and HeroBX refused to respond.

CN records say the Canadian company that arranged the deal is Bioversel Trading Inc., which is being investigated by the Canada Border Services Agency on allegations it made false statements to avoid duties in shipping biodiesel to Romania and Italy. Officials are now investigating claims the companies were routing American-made biodiesel through Canada and falsifying its origin to avoid paying tens of millions of dollars in European anti-dumping duties.

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US Military may Stop Buying Biofuels

The House Armed Services Committee report on next year's Pentagon budget includes a measure that would exclude the purchase of biofuels.

As reported in Renewable Energy World, the US military has been a major supporter of the biofuels industry. The Navy plans to unveil its “Green Strike Force” at this year’s RIMPAC.

The Navy has pledged to use 50 percent alternative fuels by 2020, but the House Armed Services Committee are questioning the value of current biofuel blend which costs around $15 per gallon.

The US Navy purchases biofuels like cooking oil and algae-based fuels. Although these purchases are crucial to keep the US biofuels industry alive, they are expensive and offer questionable value to the environment .

The US military has repeatedly indicated that climate change is a threat to national security and finding cleaner energy alternatives is in the strategic interests of the nation. However, biofuels may not be the best solution.

Although the data suggests that biofuels offer limited benefits the US military has kept the biofuels pipe-dream alive. If this support dries up, it may force the nation's armed services to find truly clean sources of energy.

© 2012, Richard Matthews. All rights reserved.

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