Homegrown: Could Canada’s Emerging Renewable Diesel Production Replace US Imports?

The buzz and activity around renewable diesel (RD), a chemically identical drop-in replacement for traditional petroleum-based diesel, continues to grow. The goals of RD, which is produced from renewable raw materials, are to reduce the need for oil and reduce life-cycle greenhouse gas (GHG) emissions, critical steps in meeting the climate agendas of many countries. Canada recently enacted legislation designed to promote domestic RD production as part of a broader emissions reduction strategy. In today’s RBN blog, we take a tour of Canada’s emerging RD production sector and examine whether it could one day replace US imports

The world’s drive to reduce its reliance on petroleum-based fuels continues to be relentless. From both a climate perspective and a desire for greater self-sufficiency, many nations have sought to reduce their dependence on oil by increasing efforts to produce more homegrown fuels—literally, in the DR’s case, given that its raw materials are oils derived from agriculture. products such as canola and soy.

The RBN blogosphere is well stocked with explanations of the chemical nature of RD; it’s safe to say. the RD blog in our Come Clean series will tell you everything you need to know about how RD occurs. Additional analysis on more recent developments and the regulatory environment, as well as the favorable tax treatment that fuel receives under US regulations. Inflation reduction law (IRA), can be found at thunder. Another driver of the rapidly expanding RD industry has been the implementation of a low-carbon fuel standard (LCFS) in several jurisdictions, particularly California (see Californication).