Report predicts growth in Canadian renewable diesel production

Canada could have 3.27 billion liters (863.84 million gallons) of renewable diesel production capacity in place within the next four years, according to a report recently filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.

The report discusses the current status of the Canada’s renewable diesel and biodiesel industries and provides an overview of the country’s draft Clean Fuel Standard.

Canada consumed an estimated 962 million liters of biodiesel and renewable diesel last year, up from 892 million liters in 2020.

The country had 12 operational biodiesel plants in 2021 with a combined 912 million liters of capacity. Those facilities operated at an estimated 50 percent of capacity, producing 460 million liters of fuel. Canada currently has no operational renewable diesel production capacity, but 81 million liters of capacity is expected to come online this year, growing to as much as 3.27 billion liters over the next four years.

Canada imported 497 million liters of biodiesel in 2021, up from 384 million liters in 2020. Renewable diesel imports reached 480 million liters last year, down from 500 million liters in 2021. Canada also exported 435 million liters of biodiesel last year, down from 451 million liters in 2020.

The blend rate for biodiesel and renewable diesel was approximately 2.8 percent last year, up from 2.7 percent in 2020.

Canada’s Clean Fuel Standard is expected to boost biofuel use in the coming years. The program aims to achieve 30 million tons of annual reductions in greenhouse gas (GHG) emissions by 2030, according to the report.

A draft regulation was published in December 2020, outlining a nationwide framework for adopting a carbon intensity (CI) approach for renewable fuels. The final regulation is expected to be published this spring.

A full copy of the report can be downloaded from the USDA FAS GAIN website.