Canada’s renewable diesel feedstock growth goes beyond cereals
In Canada, a Farm Credit Canada report says growth in renewable diesel is broadening biofuel feedstock demand beyond cereal grains. From January to July 2026, Canadian plants used about 800,000 tons of vegetable oil – more than double what was used over the same period in 2025. This nearly matches cereal grain use of roughly 860,000 tons. Actual cereal grain consumption is 2.6 million tons, but only 33% of that gets converted into ethanol, the remainder is distillers’ grain, carbon dioxide, and corn oil – this allows for direct comparison to vegetable oil which is also a by-product of crushing. Fats, tallows and greases also rose to about 235,000 tons after remaining below 100,000 tons in earlier years.
The increase in domestic renewable diesel production is clearly supportive of Canadian oilseed demand. Vegetable oils drive most of this growth, as supply constraints in the livestock harvesting sector limit the availability of lower-carbon fats and greases. Canadian canola oil is the primary oil used by facilities in Western Canada, although imported feedstocks are still used.
Biofuels account for a growing share of Canada’s finished fuel supply. Ethanol’s share of gasoline increased steadily from about 8% in 2020 to roughly 11% in early 2026. Biodiesel and renewable diesel blending into diesel remains seasonal, but recent peaks near 6.5% are well above the 3% to 4% range recorded earlier in the period.
Category: Fuels
