Renewable diesel
Renewable diesel is a sustainable alternative to conventional diesel fuel, produced from renewable feedstocks such as vegetable oils, animal fats, and waste oils. The most common way to make renewable diesel includes a process known as hydrotreating, which produces a fuel that is chemically identical to petroleum diesel. This allows it to be used in any diesel engine without modifications and meets the same fuel quality standards as traditional diesel.
Types of renewable diesels
There are two main types of renewable diesel:
The Hydrotreated Vegetable Oil (HVO) process produces renewable diesel by hydrogenating renewable feedstocks like vegetable oils and animal fats. In this process, hydrogen is used to remove oxygen, resulting in a fuel that is chemically identical to petroleum diesel, with improved stability, performance, and lower greenhouse gas emissions.
The Fischer-Tropsch process converts materials like plant waste or waste gases into a gas mix called synthetic gas or syngas. This syngas is then turned into liquid fuels, like renewable diesel, using a special catalyst. The result is a clean, high-quality diesel that can be used in regular engines with lower emissions.
The road ahead for renewable diesel
In Canada, renewable diesel production is growing but remains limited compared to demand. Facilities like Tidewater Renewables in British Columbia and Braya Renewable Fuels in Newfoundland have started production, and Imperial Oil’s Strathcona renewable diesel facility is expected to start production in 2025. Investments in this sector could increase significantly with the right policies and incentives in place.
Renewable diesel helps meet the Clean Fuel Regulations targets, as well as provincial mandates, which require a reduction in carbon intensity of liquid fuels used in Canada. Demand for renewable diesel is expected to rise significantly in the coming years, driven by increasing regulatory pressure to reduce greenhouse gas emissions and corporate commitments to sustainability.
Forecasts indicate that renewable diesel demand in Canada could grow exponentially, especially in sectors such as long-haul transportation, heavy industry, and agriculture, as the country works towards achieving its future climate targets.