CGF taps into a Saskatchewan renewable resource to manufacture biodiesel: a Regina company is...

For generations, calls for adding value to Saskatchewan's agricultural products have been a common rallying cry. While the relative merits of specific ventures might be up for debate, Regina entrepreneur Michael Shenher is confident the Canadian Green Fuels Inc. (CGF) industrial-scale biodiesel

"I think it's really just the beginning of what's going to be a massive industry," Shenher asserted. "I think we're really on the cusp of a burgeoning economy in Saskatchewan, and renewable fuels such as biodiesel represent our opportunity to shine internationally."

Just how big is the opportunity? The world consumption of diesel fuel is about a trillion litres per year and rising, according to Shenher, as China and India start to modernize their economies. The world demand for oil and petroleum diesel cannot be met--creating major capacity for biodiesel to supplement fossil fuels.

As founder, president & CEO of Canadian Green Fuels, Shenher forged a group of private investors to buy a vacant Regina animal feed plant. After converting the dormant facility into a 9,000 square-foot plant, CGF began producing biodiesel in February 2007. Its current crushing capacity is 20,000 litres a day. Capacity will increase substantially due to the recent addition of a second processor at the McAra St. plant.

CGF is the first western Canadian biodiesel plant to be up and running, along with only two others across the nation. Many other similar ventures failed to launch from the drawing board.

Canadian Green Fuels purchases Saskatchewan-produced oil seeds, primarily canola, crushing them to convert oil into biodiesel for conventional diesel engines. Environmentally friendly carbon-free biodiesel can burn in a petroleum blend, or full strength, in any factory stock diesel engine, replacing petroleum diesel fuel.

Adding value also means producing biodiesel for many end users--not only customers using it to power vehicle engines, furnaces and generators. CGF is strategically marketing an innovative range of byproducts of biodiesel production. Protein-rich meal from crushed oilseeds sells as a livestock feed supplement; crude canola and soy oil sell as commodities; biodiesel is also transformed into diesel fuel conditioners, additives, and lubricants.

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"We believe there's a huge market for these products," said Shenher. "For example, environmentally conscious cyclists in San Francisco will be interested in buying chain lubricant made with biodiesel."

Canadian Green Fuels uses a unique continuous flow processing system, which Shenher said is superior to similar commercially available technology. The system enables CGF to move biodiesel directly from production bins to transport tankers.

"We're also unique," he added, "because we've found just the right economy of scale in our crushing and production capabilities. We're also proud that we've kept abreast of innovative technologies to make us increasingly more cost efficient."

Expansion is top of mind for Shenher and his ownership group. Plans are under consideration to build new plants in Saskatchewan, Alberta and Mexico.