Manitoba became the first province in Canada to mandate the use of biodiesel when new legislation took effect Sunday.

All diesel fuel sold in the province must now contain an average of two per cent biodiesel, Premier Greg Selinger said Monday at Speedway International, a Manitoba biodiesel processing facility.

'This mandate is one of the building blocks of our clean energy plan, an important climate-change initiative that will see the reduction of greenhouse gas emissions in Manitoba' —Premier Greg Selinger

The move is expected to cut annual greenhouse gas emissions by 56,000 tonnes, which is the equivalent of removing 11,000 cars from the road, Selinger said.

"This mandate is one of the building blocks of our clean energy plan, an important climate-change initiative that will see the reduction of greenhouse gas emissions in Manitoba," Selinger said.

Biodiesel is a safe, non-toxic, renewable and clean-burning fuel made from a variety of sources such as oilseed, animal fats from rendering facilities, and used restaurant oils and grease.

Canola and soybeans are most commonly used in the production of biodiesel, though other crops such as mustard, flax, sunflower, palm, coconut and hemp are also used.

It is biodegradable in water and produces fewer emissions and has a more pleasant odour than petroleum diesel, according to a news release from the provincial government.

The province will provide greater support for local biodiesel production by replacing the current fuel tax exemption with a 14-cent-per-litre, five-year production grant for biodiesel produced in Manitoba, Selinger said.

The grant keeps Manitoba competitive with incentives offered in other North American jurisdictions, he added.

Selinger said biodiesel is already being used in Manitoba by some vehicle fleets, including at Manitoba Hydro, the Winnipeg School Division and Canada Safeway.

It is expected biodiesel will be widely available to consumers by summer 2010, Selinger said.