Co-ops exist across the country in many different capacities. Part of the appeal of co-ops is their democratic, shared quality that allows each member a say in the operation of the group. By nature, it is a community-based organization generally guided by a set of principles that include voluntary and open membership, democratic member control and autonomy and independence. As such, co-ops are often more concerned with the quality of their organization and the health of their community than making a profit. From this perspective the the appeal of co-ops is clear, and indeed the trend has caught on within the biofuels community.
While co-ops remain small-scale operations, they have large followings of interested individuals who want to make proactive changes to the way they think about and use energy. Biofuels Canada spoke with three of these co-ops who all sell B100 biodiesel and either produce their own biodiesel or buy it from a third party. The members of the co-ops range from local farmers looking to close the loop on their farms, to commercial fleets and courier services in large, urban cities. With membership numbers as high as 158, it's not surprising that some of these organizations are purchasing biodiesel from suppliers who make upwards of 250,000 litres of biodiesel per year. For those establishments that remain small, the potential of a large following is quite possibly on the horizon.
Everpure Biodiesel, located in Hillsburgh, Ontario, has approximately 54 members in its small establishment that provides B100 mainly for farmers in the area. "The idea of the co-op is to just really give back to the members, really stick to the community aspect… and we decided that biodiesel was a good way to do that," says Garrett Wright, general manager of the co-op. "The number one criteria [for establishing the co-op] are the benefit to farmers."
A similar approach is taken by the Recycling Alternative in Vancouver, British Columbia, who supplies biodiesel to the Vancouver Biodiesel co-op. "[We have] basically hosted the [Vancouver Biodiesel co-op] since day one when it was first initiated," says Robert Weatherbe, co-owner and co-founder of the Recycling Alternative. "We've developed a symbiotic relationship where we supply the infrastructure and facility to the co-op."
The driving mandate at the Recycling Alternative is in line with the overall direction of co-ops in general, and with many biodiesel co-ops in Canada: a genuine desire to be proactive about the harmful effects of fossil fuels on the environment. "I think for us the co-op is appealing because it [includes] a community of like-minded people who have similar desires and want certain things to be available to them," Weatherbe says. "And one of them is to drive their vehicle knowing that they're not creating a carbon footprint and they're also reducing fossil fuels." The democratic model of the co-op also appeals to Jean-Michel Toriel, biodiesel manager at the Recycling Alternative, who says that the co-op's strict mandate of sticking to the recycled waste stream is an important element of the organization for him.
On Vancouver Island, Island Biodiesel is running a small co-op that operates under an organic, grassroots approach that also stems from a genuine concern for the environment and Canada's dependence on foreign oil. Don Goodeve is the co-founder of Island Biodiesel along with Kenji James Fuse and Karel Roessingh. Goodeve is attracted to the simplicity of the co-op as compared to working for a corporate outfit. "We have a diversity of people [involved] so we grow our knowledge base to produce good fuel. We also take advantage of the geography," he says."We've got the [waste] oil sources here and the production plant here so … if we can keep it local it actually makes life a lot easier." His colleague, Fuse, similarly enjoys the democratic nature of the co-op and the inherent shared responsibility. "Co-ops offer similar limited liability protection as the standard corporation, but are much more egalitarian in their structure," Fuse says. "This egalitarian structure (one share, one vote) tends to make for better behaviour amongst the members and limits much of the power hogging that is so endemic in corporate behaviour." However, for Island Biodiesel, one of the main driving factors in the establishment of the co-op was an innate desire to contribute to changing the way we perceive and use energy. "We're doing this because we feel like it's the right thing to do," explains Goodeve. "Having an influence on our sources of energy is something that has become really important to me."
Each group was born out of a perceived need to offset the harmful effects that our energy-driven society is having on the environment. Interestingly, biodiesel production was chosen independently by each group, and many other groups, as one of the most feasible and desirable ways to remedy this issue. The reasons for choosing biodiesel production include the availability of feedstock and the demand for a cleaner burning fuel. For Weatherbe, biodiesel is preferable to ethanol because he feels that one's carbon footprint is more significantly reduced through biodiesel production. But, overwhelmingly, the co-ops are attracted to biodiesel because they can convert a waste product (the feedstock) into an energy product. "As a recycling company [our reasons for producing] has to do with waste reduction and waste diversion" Toriel says. "We use tallow as well as waste vegetable oil materials. So they're all part of the waste stream."
Wright, at Everpure Biodiesel, agrees that using waste products makes the most sense in terms of what the members of the co-op want. According to Wright, using waste oil is the number one guiding principle of his co-op. "We don't believe in diverting feedstocks," he says. Wright's biodiesel supplier, Lougheed Biofuels, collects waste vegetable oil from local potato chip factories as well as other suppliers in the area.
Waste oil, collected from local restaurants or factories is also the feedstock of choice for Island Biodiesel, but recently the co-op noticed an increase in the demand for waste oil. "In the past year it has gone from having verbal agreements with different restaurants where they want to get rid of their oil and are happy to see someone take it, to them saying that they have new agreements and are being paid for their recycled waste oil," Goodeve says. The co-op is now considering using waste grease that would otherwise end up in the sewage system. The competition that Island Biodiesel is beginning to experience is indicative of a trend towards individuals taking it upon themselves to produce renewable fuel as a way to avoid the rising price of gasoline.
Brad Saville, professor of chemical engineering and biofuels specialist at the University of Toronto, sees a future for small co-ops as long as they remain small and can avoid incorporating a third-party into their processing. "Generally speaking, co-ops have been better able to weather the storm of high feedstock prices, because there is often a feedstock supply contract associated with share ownership in the biofuels facility, which locks in some of the feedstock supply at a specified price," Saville says. "Thus, the biofuels facility isn't impacted to the same degree as one that has to rely on 100 per cent of its supply from third party sources."
Perhaps the small biodiesel co-ops across Canada are on to something. The co-ops are able to produce a renewable fuel for consumers who are serious about the environment and are able to do it at little cost while still maintaining job satisfaction among their members. Goodeve is a refreshing example of someone who is fully committed to solving Canada's energy crisis. "I've got a deeper relationship with energy," he says. "Carrying around waste oil isn't very pleasant sometimes, but I know what it's like to lift it; I know what it smells like; I put effort into it to turn it into something that's useful. I hold it, I touch it, I get covered in it occasionally, and … it's helped me develop a different relationship and appreciation for [energy]." His sentiments are of great comfort to Canadians who are ready to see our country's relationship with energy develop a greener perspective.
Amanda Watkins is a staff writer for Biofuels Canada. Reach her at (519) 576-4500 or awatkins@bbiinternational.com
