Refiners in the United States are gearing up production of diesel fuel from vegetable oils, including those collected from restaurants, and could capture the Canadian market, warns Ian Thomson, president of Advanced Biofuels Canada.
So far, Canadian companies have been slow in preparing to make the fuel, with only three projects publicly announced, Thomson told Reuters news agency.
At least five U.S. refiners have announced plans to produce renewable diesel or said they are considering it, including Phillips 66 and HollyFrontier Corp.
“This is Canada’s to lose,” Thomson said. “If Canada’s refiners want to get left out of the game, they will dig their heels in and oppose the standard. Meanwhile, the Americans will build.”
Renewable diesel is a niche market for about half of one per cent of the global sales of 430 billion gallon per year.
