Canola Oil EPA Announcement

Canola Oil Now Has Pathway Into The Low Carbon Fuel Standard (LCFS)

The EPA has proposed a rule that would allow canola oil a pathway in the low carbon fuel standard, which includes using canola oil as a feedstock for renewable diesel (B100) and sustainable aviation fuel. Currently, canola oil can be used to generate D4 and D5 RINs in biodiesel (B10, B20), but as of today, canola oil cannot generate credits in the renewable diesel process. If approved, this new EPA rule will create even more demand for vegetable oil which has already been in tight supply since last summer. Canada’s canola crop was down 38% last year from start to finish due to a severe drought that impacted central Canada. That drought has impacted the amount of seed available for crush, and we are still 5 months away from the new crop harvest in Canada. For the official announcement and to read the full proposed rule, click here.

Canola oil harvest

For food customers that use canola oil in any finished product, we highly recommend taking a proactive approach to procuring your canola oil needs for the next 2 quarters, and potentially through the end of the year. Contracting volumes are the best course of action to ensure continuity of supply. IFPC has conventional, non-GMO, and organic canola options available, but supplies are dwindling fast.

Get in touch with us today to discuss your canola oil needs with one of our account representatives!

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