Saskatchewan's Renewable Diesel Mandate came into effect on July 1, 2012, and will establish an average of two per cent renewable content in diesel fuel sold in the province.

Renewable diesel is a diesel fuel substitute made from renewable materials which include vegetable oil, waste cooking oil, animal fat and fish oil or feedstock from agricultural or forest biomass. The use of renewable diesel in Saskatchewan has the potential to reduce greenhouse gas emissions equivalent to taking 5,000 cars off the road annually.

"The new mandate was developed in consultation with the industry," Economy Minister Bill Boyd said. "To support the mandate, our government introduced the Renewable Diesel program in the 2011-2012 Budget which provides incentive for the production of renewable diesel in the province."

There will be an average-based system that will have a compliance period that extends until December 31, 2014. The mandate does not apply to diesel marketed in Northern Saskatchewan or to aviation fuel.

"The new Saskatchewan mandate will ensure participation and count toward compliance under the national mandate," Boyd said. "There is an emerging market for new fuels, it's good for our environment and at the same time benefits our economy."