Imports from the United States are dominating the Canadian market for renewable diesel fuel, reports Pro Farmer.
“Canada has lagged the U.S. in setting up domestic renewable diesel production,” it said.
The Canadian plants that are operating are being squeezed by the imports and a British Columbia reduction in low-carbon tax credits.
British Columbia’s LCFS credits fell to $207 in July after trading at more than $400 for two years.
U.S. producers shipped at least 530 million liters of renewable diesel to Canada in the first six months of 2024, up from 151 million liters during the same period last year, according to data compiled by Will Faulkner, founder of industry analysis firm Carbon Acumen.
British Columbia is the only province with an LCFS credit market, which helped encourage Calgary-based Tidewater Renewables to open the country’s first standalone renewable diesel refinery last year.
Others are also betting on the credits to support construction of more facilities in British Columbia and other provinces. At the same time, the LCFS has made Canada an attractive outlet for a glut of U.S. renewable diesel, Pro Farmer said.
