Fuel contract awarded
The STM opens the door to Québec’s biodiesel market
Montreal, October 4, 2007 - As part of a symposium held by the Association des transporteurs urbains du Québec (ATUQ), Claude Trudel announced that the STM Board of Directors had approved the awarding of a two-year, group purchase contract to Groupe p�trolier OLCO inc. for the supply of diesel fuel and biodiesel.
Biodiesel will thus be available on the Québec market, making it possible for public transit companies and interested municipalities to obtain it. “Following our announcement last March, the STM has selected biodiesel as one of its choices in the matter of fuel, in support of its commitment to sustainable development,” declared Mr. Trudel. “I am particularly proud of the fact that the STM is opening the door to this new commercial market in Québec, which will allow for reductions in GHG emissions. The STM will gradually supply all of its buses with biofuel as of November 2007.”
In addition to the STM, the STL has already confirmed its intention to follow suit in the coming months. Other public transit companies, including the RTL’ RTC, ST L�vis, ST Saguenay, ST Sherbrooke and STO, as well as the cities of Montréal and Laval will also have the opportunity of following their lead in the next two years.
“This is good news, as it is consistent with action by the Québec government, both in the matter of energy and sustainable development. Public transportation already contributes to lowered GHG emissions. Choosing biodiesel will make public transit even more eco-energetic,” added ATUQ president, Jean-Jacques Beldi�.
Following a public call for tenders, OLCO was awarded the fuel supply contract worth some $105 M a year, which includes the contract for the STM worth $46 M. This group purchase will mean the procurement of more than 106.3 million litres of diesel fuel each year, of which 47 million are earmarked for the STM. Thus, a 5% concentration of biodiesel, known as B5, represents some 2.3 million litres a year for the STM. The contract also includes options to extend for 2009, 2010 and 2011.
The use of B5 by the STM will lead to reducing CO2 emissions by 6400 tonnes each year, the equivalent of removing some 1300 cars from the road, each one travelling 20 000 km a year. Once the B5 deployment phase is completed, the STM will reassess the possibility of increasing the concentration of biodiesel in order to further optimize the environmental impact of this alternative fuel.
“The scope of the contract has placed the STM among the three major buyers of biodiesel in Canada, along with Toronto and Vancouver,” added Mr. Trudel. “The biodiesel provided by OLCO will come from supply sources in Ontario and Québec, and be manufactured according to processes that use waste vegetable and cooking oils, as well as animal fat.”
From March 2002 to March 2003, the STM carried out a biodiesel demonstration and assessment project from its Frontenac garage (155 buses), and results of the experiment were quite positive.
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Isabelle A. Tremblay