California’s potential feedstock cap could increase canola oil use in renewable diesel market: sources

California’s potential feedstock cap could increase canola oil use in renewable diesel market: sources

Feedstock providers and biofuel producers in the US have been resistant to the proposed amendments by the California Air Resources Board (CARB) to cap the use of canola and soybean oil (SBO) at 20% of a company’s feedstock mix in meeting the goals of the state’s Low Carbon Fuel Standard (LCFS).

But if implemented, the cap could lead to additional canola use, sources told Fastmarkets.

In the US, soybean oil has been the most widely used feedstock in biofuel production, averaging nearly 50% of all feedstocks used through mid-2022 and reaching a high of 60% in 2020. Since then, soybean oil’s percentage share of the feedstock mix has been steadily declining, averaging only 34% in 2024.

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