Canada increases production of canola biodiesel

In the 2026/27 MY, domestic canola consumption in Canada will increase by 11% compared to the previous season, from 13.1 to 14.5 million tons, due to the expansion of processing capacity and increased demand for canola oil from the biodiesel industry, Biofuels International reports.

 

IGC experts have increased the forecast for the canola harvest in Canada in the 2026/27 MY by 600 thousand tons compared to September estimates to 22.1 million tons, which will correspond to last year's level, but the final results will depend on weather conditions, as harvesting in Saskatchewan and Alberta was delayed in early October.

 

The increase in domestic consumption will be facilitated by the increase in the volume of rapeseed processing to obtain meal and oil, the demand for which is increasing from producers of biodiesel and renewable diesel fuel, in particular hydrotreated oil (HVO).

 

Government support measures for the biofuel industry in North America are helping to boost its production. According to the German Union for the Promotion of Oilseed and Protein Crops (UFOP), changes to the US 45Z tax incentive mechanism introduced in early 2026 have increased the importance of the carbon intensity of the feedstock in biofuel production, making rapeseed oil more attractive to low-carbon fuel producers.

 

According to the forecast of experts from the Agrarmarkt Informations-Gesellschaft (AMI), against the backdrop of a stable harvest and increasing domestic consumption, rapeseed exports from Canada (which is one of the world's largest rapeseed exporters) in the 2026/27 MY may decrease by 14% compared to the previous season from 9.1 to 7.8 million tons.