US approves canola oil pathway for RFS credits

Renewable diesel and jet fuel produced from canola oil have won a new way to generate compliance credits under the Renewable Fuel Standard (RFS), according to a rule finalized this week.

The US Environmental Protection Agency (EPA) said those two fuels — along with heating oil, naphtha and liquefied petroleum gas — produced from canola oil using a process named hydrotreating would now be eligible for compliance under the RFS. Those fuels all meet a requirement to generate 50pc less greenhouse gas emissions, the rule said.

The approval of the hydrotreating pathway for canola oil will expand the options for companies to generate renewable identification numbers (RINs) that are used to demonstrate compliance with the RFS, a program that has required US refiners and importers to blend growing amounts of biofuels into the transportation fuel supply.

Biofuel groups cheered the rule, but they say EPA failed to account for it in newly proposed RFS blending targets for 2023-25. That proposal seeks about a 2.5pc/yr growth in biomass-based diesel blending volumes over the next three years, to 2.95bn USG in 2025. Industry groups say that is insufficient because they are already producing 3bn USG/yr of the fuel.

"[EPA's] approval enables a more diverse feedstock supply for the clean fuels industry," the industry group Clean Fuels Alliance America said. "But the potential growth is not accounted for in the proposed volumes."

The final rule, released on 1 December, says renewable diesel, jet fuel and heating oil produced from canola will generate D4 biomass-based diesel RINs if it is not co-processed with renewable biomass or petroleum. Those same fuels will generate D5 advanced biofuel RINs if they are co-processed with biomass or petroleum. Naphtha and liquefied petroleum gas produced from canola will be eligible for D5 RINs.

EPA previously approved a D4 RIN pathway for biodiesel produced from canola oil through a transesterification process.

By Chris Knight