Breakthrough for Canadian canola in U.S. biodiesel market

Thursday, September 29, 2011

A U.S. Environmental Protection Agency (EPA) decision means the reopening of an important market for Canada’s canola industry, according to the Canola Council of Canada (CCC).

The EPA has approved the Government of Canada’s petition to use the aggregate approach for approval of Canadian feedstocks, including canola, for biodiesel production in the U.S. The decision means biodiesel produced in Canadian plants using canola can be sold in the U.S. It also means biodiesel produced in the U.S. from Canadian canola can be marketed in the U.S. Currently U.S. produced biodiesel using Canadian canola is being sold into Canadian markets in order to meet inclusion mandates in Alberta and B.C.

"We are thrilled that we have this opportunity to increase our exports of canola into the U.S. for use in biodiesel production," says CCC president JoAnne Buth. "On behalf of the canola industry, I want to thank Agriculture Minister Gerry Ritz and officials in various departments for their diligence in putting together the petition, and in advocating so effectively with the EPA."

This issue arose in February 2010 when the EPA introduced guidelines to meet its Renewable Fuel Standards (RFS2). In December 2010 the EPA published a regulation providing for an aggregate land use methodology for foreign feedstock compliance.

During the subsequent comment period, the Government of Canada filed a petition with the EPA in order to secure access for Canadian canola as a feedstock for biodiesel in the U.S. The CCC worked closely with Canadian government officials to develop the petition. The petition went out for public comment and no negative comments were submitted to the EPA.

Now approved, the petition will provide secure access for Canadian canola as a sustainable feedstock for U.S. biodiesel markets under the RFS2 regulations.

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Media may contact:

JoAnne Buth, President
Canola Council of Canada
204-982-2109