The U.S. Canola Association has asked the Environmental Protection Agency (EPA) to approve the oilseed as a source of renewable fuel, which could feed an expected surge in demand for raw material from processing plants being developed.
In March, the group submitted a pathway petition to EPA to add canola renewable diesel as an eligible renewable fuel standards product, said Tom Hance, Washington Representative for the U.S. Canola Association. The petition is not yet publicly available and is under EPA review, according to Hance.
If approved, demand for the oilseed — and potentially its price — could rise and spur more imports from Canada. It could double the amount of Canada's crop that goes into fuel production, according to the Canola Council of Canada.