Canadian Prime Minister Justin Trudeau’s administration is expected to launch a target this year to cut 30 million tons of emissions by 2030 under its Clean Fuel Standard. However, Canadian refiners are lagging behind to catch up with such policy with only three biofuel projects publicly announced so far, according to Ian Thomson, the president of Advanced Biofuels Canada. On the other hand, At least five projects have been announced in the US, including by Phillips 66 and HollyFrontier.
According to Martha Hall Findlay, the Chief Sustainability Officer of Canada’s Suncor Energy, Canadian refiners face longer regulatory delays compared to US rivals, setting them at a disadvantage. Canada implements strict criteria for crops to be produced into biofuels. Corn and soybean farmer Markus Haerle said farmers wouldn’t be able to be certified under such stringent standards.
Renewable diesel is produced by processing animal fats, cooking oil, and or other vegetable oils. Its emissions are typically 50% to 80% lower than fossil-based diesel. According to investment bank Morgan Stanley, renewable diesel made up only 0.5% of the world’s diesel market. However, Canada’s Clean Fuel Standard can create a new market. At the same time, some US states such as Colorado, Washington, and California are moving toward implementing such fuel standards.
