STC TO RUN 12-MONTH TEST OF BIO-DIESEL FUEL

The Saskatchewan Transportation Company (STC) will be using a two per cent bio-diesel fuel mixture in more than half its coaches in the upcoming year to test the viability of using the more environmentally-friendly fuel in all its coaches.

"We already know that bio-diesel fuel burns cleaner than regular fuel, and is therefore better for the environment," Minister responsible for STC Eldon Lautermilch said. "The company wants to give the fuel an extensive testing to gauge potential savings in terms of mileage and motor life.

"This has the potential to be a win-win-win situation. The use of bio-diesel would be good for the environment, it has potential to be good for STC's bottom-line, and it will assist the development of a value-added industry within our agricultural sector."

STC plans to blend the fuel in its storage tanks in Saskatoon and use the mixture in all buses which fuel at that facility, approximately 54 per cent of its fleet. A shorter trial using one bus, on the Saskatoon to Swift Current run, was conducted in 2005. However, that test did not give sufficient information to make a judgement on the economic impact of the fuel additive.

STC will be using bio-diesel supplied by Milligan Bio-tech, an innovative and rural-based company established at Foam Lake, to produce bio-diesel and other value-added co-products. In the course of a year, STC would use one million litres of diesel fuel from its Saskatoon facility.

"Mass transit, such as that provided by STC, is already the solution to many of our environmental concerns," Environment Minister John Nilson said. "By adopting the use of a more environmentally-friendly fuel, the company is just strengthening its position as a 'green' operation. This is just one more step to building a green and prosperous economy in Saskatchewan."

"Today's announcement represents one of many important steps toward developing a sustainable bio-diesel industry in Saskatchewan. Achieving that end will require commitment from producers, government and industry to develop a market for bio-diesel and demonstrate its economic and environmental benefits," Saskatchewan Bio-diesel Development Task Force Co-chair Judie Dyck said. "STC's commitment to this project takes us a little further down that road."

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For More Information, Contact:

John Millar STC Regina Phone: (306) 787-6807