The buzz and activity around renewable diesel (RD), a chemically identical “drop-in” replacement for traditional petroleum-based diesel, continues to grow. The goals with RD, which is produced from renewable feedstocks, are to reduce the need for petroleum and to lower life-cycle greenhouse gas (GHG) emissions — critical steps in meeting climate agendas in many countries. Canada recently enacted legislation designed to promote the domestic production of RD as part of a broader emissions-reduction strategy. In today’s RBN blog, we take a tour of the newly emerging RD production sector in Canada and examine whether it could one day replace imports from the U.S.
The world’s push to lessen its dependence on petroleum-based fuels remains unrelenting. From both a climate perspective and a desire for greater self-reliance, many nations have been attempting to reduce their petroleum dependence by increasing efforts to produce more homegrown fuels — literally, in RD’s case, given that its primary feedstocks are the oils derived from agricultural products such as canola and soybeans.
The RBN blogosphere is well stocked with explanations as to the chemical nature of RD — it’s safe to say that the RD blog in our Come Clean series will tell you all you need to know about how RD is produced. Additional analysis on more recent developments and the regulatory environment, as well as the favorable tax treatment the fuel receives under the U.S.’s Inflation Reduction Act (IRA), can be found in Thunderstruck. Another driver in the rapidly expanding RD industry has been the implementation of a Low Carbon Fuel Standard (LCFS) in several jurisdictions, especially California (see Californication).
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
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About the song
“Homegrown” was written by Zac Brown, Niko Moon, and Wyatt Durrette. It appears as the fourth song on the Zac Brown Band’s fourth studio album, Jekyll + Hyde. The song is about a man satisfied with the life he has rather than what it could be. Released as a single in January 2015, the song went to #2 on the Billboard Hot Country Songs chart and #35 on the Billboard Hot 100 Singles chart. It has been certified 2x Platinum by the Recording Industry Association of America (RIAA). Personnel on the record were: Zac Brown (lead vocal, acoustic guitar, electric guitar), Coy Bowles (slide guitar), Clay Cook (Hammond organ, electric guitar, backing vocals), Chris Fryar (drums), John Driskell Hopkins (banjo, backing vocals), Matt Mangano (bass), Jay Joyce (programming, percussion), Jimmy De Martini (violin, backing vocals), and Daniel de los Reyes (percussion).
Jekyll + Hyde was recorded in 2014-15 and produced by Zac Brown, Ceelo Green, Jim Hoke, In the Arena Productions, Jay Joyce, and Darrell Scott. Released in April 2015, the album went to #1 on the Billboard 200 Albums and Top Country Albums charts and has been certified Gold by the RIAA. Six singles were released from the LP, including “Heavy is the Head,” which featured guest vocals from the late Soundgarden vocalist, Chris Cornell.
The Zac Brown band is an American country music band formed in Atlanta in 2002 by Zac Brown. They have released seven studio albums, two live albums, two EPs and 29 singles and have won five ACM Awards and three Grammy Awards. The band continues to record and perform live and will be playing a show in Willowbank, Queensland, Australia, in late March, followed by U.S. tour dates beginning in June.
Comments
If I'm not mistaken, nearly 100% of biodiesel production in Canada is exported to the U.S. and nearly 100% of biodiesel demand in Canada is imported from the U.S. Production and demand in Canada are fairly balanced, so how can this be? It is because of the $1 / gallon blender's tax credit that can be generated in the U.S. from blending. It seems like similar trade flows will develop for RD. Countries in Europe actually have import tarrifs on the U.S. to counter this (significant) competitive edge. I don't see Canada slapping a tarrif on the U.S. with our trade agreeements. I think as production in Canada comes online those barrels will make their way across the border and Canada will need U.S. production to meet their goals.