Renewable diesel production in Canada could reach 3.27bn litres within the next four years, according to a report by the United States Department of Agriculture (USDA) reported by Biodiesel magazine.

The Global Agricultural Information Network (GAIN) report covers the current status of Canada’s renewable diesel and biodiesel industries and provides an overview of the country’s draft Clean Fuel Standard, the 18 January Biodiesel magazine report said.

Last year, Canada consumed an estimated 962M litres of biodiesel and renewable diesel, up from 892M litres the previous year, according to the report.

The country had 12 operational biodiesel plants last year with a combined 912M litres of capacity, with the facilities operating at an estimated 50% capacity, producing 460M litres of fuel.

Canada currently has no operational renewable diesel production capacity but 81M litres of capacity is expected to come online this year, according to the report, with the potential to reach 3.27bn litres over the next four years.

Last year, Canada imported 497M litres of biodiesel compared to 384M litres the previous year, while renewable diesel imports reached 480M litres last year, down from 500M litres. The country also exported 435M litres of biodiesel last year, down from 451M litres in 2020, the report said.

The blend rate for biodiesel and renewable diesel was approximately 2.8% last year, up from 2.7% in 2020

Canada’s Clean Fuel Standard is expected to boost biofuel use in the coming years, according to the report, with the programme aiming to achieve 30M tonnes of annual reductions in greenhouse gas (GHG) emissions by 2030.

A draft regulation was published in December 2020, outlining a nationwide framework for adopting a carbon intensity (CI) approach for renewable fuels, the report said, with the final regulation expected to be published later this year.