Domestic Demand: Biofuel
As Canada and more global markets choose canola-based biofuels (biodiesel and renewable diesel), the Canadian canola industry has a big opportunity to meet demand. Canola is a high-quality, domestically sourced, sustainable biofuel feedstock that can play a key role in reducing greenhouse gas (GHG) emissions in transportation fuel.
In 2023, canola oil exports to the U.S. increased 40%, following canola oil being approved for use in U.S. renewable fuel production in 2022.
The canola sector is mobilizing to produce and process more canola domestically with canola processing announcements made in 2021 beginning to come online. These investments support growth for Canada by creating stable domestic demand for canola farmers, bringing well-paid jobs to rural communities, increasing value-added exports resulting in economic growth, and helping to reduce GHG emissions.