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United States Talking About Using Canola For Renewable Diesel

The United States has been talking about the possibility of using canola for renewable diesel.

Jon Driedger is vice-president of LeftField Commodity Research.

"That's something that's very much on our radar," he said. "It's legislation and policy and sort of a regulatory dynamic that creates an element of uncertainty in regards to, do laws get passed, what do they look like? and that sort of thing. Certainly it's one of the things, that's on our radar, is the potential for demand for canola oil to increase substantially out of the U.S. depending a little bit on what those biofuel policies look like and if and when they pass."

Driedger commented on what this would mean for Canada.

"Certainly it could be a huge increase in demand for canola oil specifically. For example, we have a lot of projected builds of new crush plants in Western Canada and I think one of the things that they keep as part of their business plan is the potential for a huge increase in renewable fuel consumption and specifically for canola oil. We think about all these plants anticipated to go up in the next few years, based on what legislation could like, we won't have trouble finding a home for that canola oil."

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