Canada to consume 885 million liters of biobased diesel in 2022

Canadian consumption of both renewable diesel and biodiesel is expected to be up slightly in 2022, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.

Canada is expected to consume 500 million liters (132.09 million gallons) of renewable diesel this year, up from 480 million liters in 2021, but flat when compared to the 500 million liters consumed in 2020. Canada currently imports all the renewable diesel it consumes, according to the report. That is expected to change, however, with several renewable diesel projects scheduled to come online in Canada over the next few years.

There are currently 12 biodiesel plants located in Canada with a combined 912 million liters of production capacity, although only six facilities with a combined capacity of 550 million liters are currently operational, according to the report. Both the number of plants and nameplate capacity has held steady since 2020. Capacity use is expected to be at 44 percent in 2022, down from 46 percent in 2021 and 50 percent in 2020.

Canadian facilities are expected to produce 400 million liters of biodiesel this year, down from 416 million liters in 2021 and 457 million liters in 2020. The country is expected to import 360 million liters of biodiesel in 2022, down from 380 million liters in 2021 and 384 million liters in 2020. Biodiesel exports are expected to fall to 375 million liters this year, down from 440 million liters last year and 451 million liters in 2020. Biodiesel consumption is expected to reach 385 million liters in 2022, up from 256 million liters in 2021, but down from 391 million liters in 2020.

Together, renewable diesel and biodiesel are expected to account for 2.5 percent of Canadian diesel consumption this year, up from 2.3 percent in 2021, and flat with the 2.5 percent reported for 2020.

A full copy of the report is available on the USDA FAS GAIN website.