Rapeseed Oil to be Used as a Feed For Renewable Diesel, EPA Says

USA: According to the U.S. Environmental Protection Agency (EPA), Rapeseed Oil (also known as canola oil) can be used as feedstock for renewable diesel. ChemAnalyst database predicts that the price of Rapeseed Oil will rise in the U.S. domestic market. In March 2020, the United States Code Annotated (USCA) requested that the EPA accept Rapeseed Oil as a feedstock for sustainable diesel. The renewable diesel, jet fuel, heating oil, naphtha, and Liquefied Petroleum Gas (LPG) generated from Rapeseed Oil (Canola Oil) via a hydrotreating process all fulfill the lifecycle Greenhouse Gas (GHG) emissions reduction criterion of 50%.

This is good news for Rapeseed farmers, producers of renewable fuels, consumers, and the environment. Rapeseed Oil (Canola oil) derived fuels are critical as the U.S. works to diversify its long-term energy supplies and renewable fuel feedstocks due to the rising need for lower carbon, cleaner burning fuels. More feedstock options give producers of renewable fuels the ability to take advantage of market efficiency, hedge against price volatility, and offer flexibility due to unanticipated events. The rising demand for Rapeseed Oil in the local market would further support the increase in the price of the product.

The U.S. produced 838 million gallons of renewable diesel in 2021 compared to 62 million gallons in 2011, according to the EPA. By the end of 2023, this production is expected to triple because of the conversion of petroleum refineries and the new construction of renewable diesel refineries, according to the U.S. Energy Information Administration (EIA). Low-carbon fuel regulations in areas like California, which support U.S. agriculture, are mostly to blame for this rise.

As per the ChemAnalyst anticipation, Rapeseed Oil demand would likely increase in the domestic market of the U.S. as Canola oil-based renewable diesel is now recognized by the Renewable Fuel Standard (RFS) program as an advanced biofuel.