Farmers prosper when they can meet growing demand for their product.
Growth opportunity: Enable a sustainable source for food and fuel.
As Canada and other jurisdictions around the world need lower-carbon fuels (such as biodiesel, renewable diesel, and sustainable aviation fuel) to meet their environmental goals and policies, the Canadian canola industry has a big opportunity to meet this demand.
Canola is used as a high-quality, domestically sourced, sustainable biofuel feedstock that can play a key role in reducing greenhouse gas (GHG) emissions in transportation fuel. Canola biofuels have excellent GHG reduction characteristics, emitting up to 90% less GHG emissions than conventional diesel fuel. This reduction is calculated on a lifecycle basis, which includes growing, processing, and transportation.
The significant announcements in the canola processing sector in 2021, and now beginning to come online, demonstrates the entire industry is mobilizing, investing, and building to domestically produce and process increased volumes of canola—to meet the growing global demand for food and fuel continentally and abroad. Today, approximately 1.8 million tonnes of seed are used in biofuel manufacturing in North America. With the current regulatory landscape, estimates suggest that this could increase to approximately 6.5 million tonnes annually by 2030.
In Canada, the Clean Fuel Regulations (CFR) came into effect on July 1, 2023. Government must continue to work with industry to ensure these regulations enable meeting this increased demand without undue burden on Canadian farmers and the biofuel supply chain. Canadian canola is ready to meet the demand for food, feed, and fuel and contribute to efforts to decarbonize transportation fuels.
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