US Renewable Fuel Standard changes could help Canadian canola growers

Vervaet said the US market for renewable diesel has grown by leaps and bounds in recent years, and the expectation of growth for renewable diesel, and the feedstock that is required to produce it, will continue to grow in the years to come.

Vervaet said the good news for Canadian producers is the U.S. will have to import canola to meet their biofuel needs.

“We think there’s an opportunity there for more canola oil to be purchased from crush operations and crush companies here in Canada to be shipped down to the United States for renewable diesel production but also sustainable aviation fuel production,” he said.

Some canola is already grown in the United States, according to Vervaet.

“There certainly is a production base for canola primarily in North Dakota, but several other states are also growing canola,” he said. “But it’s not to the same scale as canola production in Canada.”

Vervaet said, ultimately, that will mean Canadian farmers will have to increase their canola acres and/or production over the next few years.

“The number one priority is to grow production of canola in Canada, but I’d argue that it’s equally important to grow it in that North American context, so we also hope to see production increases for canola in the United States as well,” he said.

The EPA determined renewable diesel, jet fuel, heating oil, naphtha and liquefied petroleum gas produced from canola and rapeseed all reduce greenhouse gas emissions by at least 50 per cent compared to petroleum-based fuels.

The 50 per cent figure is what is required by the RFS for advanced biofuels and biomass-based diesel.

by Alice McFarlane

US Renewable Fuel Standard changes could help Canadian canola growers

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