Renewable Diesel Growth Provides Signal Upstream to Expand Crush Capacity

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April 8, 2021

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by Ron Kotrba (Bio-Based Diesel Daily) Canada’s largest agribusiness, Richardson International Ltd., is doubling canola crush capacity at its processing facility in Yorkton, Saskatchewan. In addition to doubling capacity to 2.2 million metric tons, the company said it will optimize operational efficiencies and modernize the plant to meet growing demand. Construction will begin immediately and is expected to be complete by early 2024.

Renewable diesel projects recently announced in Canada leveraging canola oil as feedstock, including standalone and coprocessing projects by Tidewater Midstream and Infrastructure Ltd. and a proposed facility in southern Saskatchewan by Covenant Energy, add to the growing momentum of similar projects across the globe. Renewable diesel development in the U.S. is reminiscent of the biodiesel project boom of the mid- to late 2000s, but on a much grander scale, creating familiar concerns over feedstock availability and price increases.

Earlier this month, the Canola Council of Canada announced the launch of its revitalized market access strategy. The plan consists of four main strategies, one of which is to enable market growth, increased value and trade diversification through biofuel and sustainability approvals.

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But in order to capitalize on the booming U.S. renewable diesel market, the hydrotreated biofuel made from canola oil must be approved by U.S. EPA.

Getting EPA to approve the pathway for canola oil renewable diesel in order to qualify as “biomass-based diesel” under the federal Renewable Fuel Standard is an all-hands-on-deck endeavor, according to Vervaet (Chris Vervaet, executive director of the Canadian Oilseed Processors Association). He said a petition was submitted in March 2020 and the Canadian and U.S. canola associations are working in tandem with renewable diesel stakeholders to get U.S. government approval.

“We are hopeful,” Vervaet said.

In order to do this, canola oil renewable diesel must be able to demonstrate at least a 50 percent reduction in greenhouse gases compared to the petroleum baseline.

“Our calculations show canola-based biofuels—both biodiesel and renewable diesel—demonstrate GHG reductions in the range of 80 to 90 percent,” Vervaet said. READ MORE

Cargill unveils plans for new canola processing facility in Regina, Saskatchewan — $350 million project builds upon Cargill’s overall investment across its North America oilseeds network (Cargill)

Tidewater choses Topsoe technology for new renewable diesel plant (Biofuels International)

Canadian canola exports could increase on bio-diesel demand (Lethbridge News Now)

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