Rise in Renewable Diesel Production to Fuel Demand for Canadian Canola

Demand for canola is expected to surge with increase in renewable diesel production in the next five years, according to the Canadian Oilseeds Processors Association.  Canadian production of renewable diesel was projected to reach 1 billion liters by 2024, 2 billion liters in 2025 and almost 4.5 billion liters by 2027, according to Chris Vervaet, Executive Director of the Association.
“For canola crush, in terms of possible capacity growth in the years to come, we could see almost 6 million tons of increased capacities based on facilities that are either under construction today or have been announced,” Vervaet said.
Although renewable diesel feedstock included vegetable oils including soybean oil and used cooking oil, as well as animal fats, Vervaet expects a major expansion of canola production in North America, possibly by 50% more.  He noted that production capacity was increasing even faster in the US with growing demand for renewable diesel driven by several biofuels policies.