“Biofuel Renaissance” Could Be Coming

by Sean Pratt (Western Producer) Industry thinks the proposed Clean Fuel Standard could unleash demand that would require two or three new crushers -- Canada could see a second wave of canola crush plant construction if Ottawa gets its proposed Clean Fuel Standard right, says an industry spokesperson.

Chris Vervaet, executive director of the Canadian Oilseed Processors Association, said renewable diesel and biodiesel consumption could reach three million litres per year by 2030 under the CFS.

That would require an additional 1.5 million tonnes of canola oil annually.

“We’re talking about at least the need for two to three new (crush) plants to meet that demand,” he said during a presentation at Canola Week 2020.

The last time there was a building bonanza like that was a decade ago when Richardson International and Louis Dreyfus christened new plants in Yorkton, Sask., and Cargill doubled the capacity of its plant in Clavet, Sask.

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Biodiesel and renewable diesel consumption in the U.S. has more than doubled over the last decade and that is just the beginning.

Renewable diesel production is expected to triple or quadruple over the next three to four years as companies scramble to meet the California demand.

There is currently no approved pathway for canola to be used as a renewable diesel feedstock in the U.S.

The Canola Council of Canada is working with U.S. regulators to address that market access issue, said Vervaet.

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The canola industry will be looking for two key elements in the fine print of the CFS. Canola production must be deemed sustainable on an aggregate basis. And canola’s low carbon advantages must be reflected in the government’s life cycle analysis model.

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The U.S. and China account for 99 percent of Canada’s canola meal exports.

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Canola meal is primarily used in aquaculture feed in China. There is very little consumed by the dairy industry, which represents an opportunity to increase sales.

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Studies show canola meal can decrease cattle methane emissions and result in less nitrogen excretion.

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The other emerging opportunity for canola meal is as a protein ingredient in human foods. READ MORE