By Michelle Rae – OPCA Executive Director
Published in the December 2024 issue of the Canadian Petroleum Contractor Magazine
In response to the global push to reduce greenhouse gas (GHG) emissions, Canada has introduced regulations requiring higher renewable content in transportation fuels. The Cleaner Transportation Fuels regulation mandates fuel suppliers to increase the blend of renewable content in gasoline, targeting 10% from 2020 to 2024, with incremental increases to 15% by 2030. Alongside gasoline, a 4% renewable content blend in diesel is also required, with these renewables the goal is to emit significantly fewer GHG emissions on a lifecycle basis compared to traditional fossil fuels.
Federal Requirements and Industry Concerns
To comply with these new regulations, Canadian refineries are ramping up bio-content levels in fuel. By 2030, gasoline could contain up to 20% ethanol (E20) and diesel/fuel oil up to 10% biodiesel (B10). However, the petroleum industry has expressed concerns over potential compatibility issues with existing fuel-handling equipment. As bio-content in fuel increases, there is a risk of equipment degradation, leading to environmental and safety risks. Dispensers, tanks, and pumps may face premature failure if they are not compatible with higher bio-content fuels.
Standards and Codes: The Regulatory Landscape
Despite these emerging needs, Canada lacks standardized codes for biofuel compatibility. While UL (Underwriters Laboratories) in the U.S. has developed over 35 codes addressing biofuel compatibility for North American markets, neither CSA (Canadian Standards Association) nor ULC (Underwriters Laboratories of Canada) has yet created or adopted biofuel standards specific to Canada. This leaves Ontario and other provinces in a regulatory gap, where biofuel blending is on the rise, but consistent standards for equipment compatibility are not yet established.
Efforts in Ontario
The Technical Standards and Safety Authority (TSSA) in Ontario has initiated efforts to bridge this standard gap by engaging with UL/ULC and CSA to explore biofuel-compatible equipment codes for potential adoption. TSSA has also reviewed UL standards applicable to Ontario’s fuel industry and has worked to develop a prioritized list of codes that may serve as Canadian biofuel standards. Through council and industry feedback, TSSA has compiled input on preferred standards to ensure stakeholder alignment. TSSA aims to establish and implement standards for biofuel-compatible equipment in Ontario sometime in 2025. This may include adopting U.S. codes while awaiting Canadian-specific standards.
Gary Highfield, TSSA Fuels Safety Engineer, says TSSA continues to monitor UL’s progress. “We also continue to work with Standards Development Organizations to ensure alignment”.
OPCA President Ken Jamieson notes that, as Petroleum Mechanics and Contractors, their primary concern is ensuring that the storage and transfer equipment they install is compatible with the products their clients store. “We consistently install equipment certified by safety standards organizations like UL, ULC, and CSA,” Jamieson says. “However, those organizations need to account for worst-case scenarios regarding the chemical compositions allowed in biofuels. This means defining, testing, and understanding the long-term effects of these compositions, especially under varying storage conditions and temperatures.”
Jamieson adds that “the biofuels industry is still somewhat of a ‘Wild West,’ using materials ranging from old restaurant grease and oils used in diverse food preparations to plant-based biomass. This results in a wide range of chemicals and potential compatibility issues, further complicated by the challenge of regulating producers—some of whom are experimenting and creating biofuels in what amounts to their garages.”
Jamieson highlighted that the industry faced a similar situation a few years ago with the shift to lower sulfur content in diesel. “That regulation was a relatively minor adjustment compared to the new biofuel standards. During short-term equipment testing, Ultra Low Sulfur Diesel (ULSD) appeared to have no negative effects, leading to its approval for use with existing equipment. However, shortly after implementation, we saw a sharp rise in failures of steel tanks and equipment, which was ultimately traced to an increase in microbial growth in the lower-sulfur diesel. These microbes produced acids that corroded steel tanks, pumps, and piping systems at an alarming rate.”
Jamieson emphasized that establishing clear definitions and regulations for biofuel products, as well as thorough testing of materials and equipment used for storage and transportation, is critical before the government’s proposed “go-live” dates. Without these measures, the intended environmental benefits of biofuels could be overshadowed by a potentially worse environmental scenario—widespread failures in fuel storage and transfer systems.
Howard Heal of Redstream Resources in Alberta agrees emphasizing the importance of clear guidelines on biofuels to ensure equipment compatibility. “Establishing standardized definitions for biofuels and their chemical compositions will provide much-needed clarity for contractors and equipment manufacturers,” Heal said. “With the right standards in place, we can ensure the reliable performance of equipment when working with alternative fuels”.
As the demand for biofuel-compatible equipment grows, establishing comprehensive standards will be essential for safeguarding environmental and public safety. With continued bio-content increases in fuel, Canada must work toward national standards that reflect the evolving needs of the fuel industry, ensuring compatibility, safety, and sustainability in every step forward.