HDRD + New Growth Plan = Opportunities in Saskatchewan
Hydrogenation-Derived Renewable Diesel, or HDRD, can use the same plant-based feedstocks as biodiesel and therefore is an excellent opportunity for the canola industry. HDRD and biodiesel are actually quite distinctive in their physical properties and chemical composition because they are produced differently. HDRD is very similar to petroleum diesel, making it a more desirable biofuel option for our engines and climate. Think of it this way - biodiesel is a fuel additive, and HDRD is a "drop-in" fuel, meaning it is interchangeable with petroleum diesel without blending, shelf-life, or potential energy limitations.
Biodiesel production brought new opportunities to Saskatchewan and to the canola industry, but many diesel users are familiar with the challenges especially in cold weather. What if there was a solution to the shortcomings that come with a biodiesel additive? And what if we are already using it?
Unfortunately, there is no HDRD currently being produced in Canada. Anything that is being included in the fuel stream in Canada is produced in Singapore, Finland, Netherlands, and the United States. At the same time, much of the traditional biodiesel produced in Canada is exported.
In the recently released Saskatchewan Growth Plan 2030, the Premier announced a goal to increase value-added capacity to 75% of the canola produced in this province. This would be a great opportunity to build capacity to 75% of the canola produced in this province. This would be a great opportunity to build capacity here at the source of the feedstock, where about half of Canada's canola crop is grown. By having the manufacturing capacity right here, the exposure to trade risk from the perspective of canola seed would be reduced. It would also support growth to the local economy by providing jobs and reduce the burden on the grain transportation and logistics system.
We are always looking for solutions to the challenges we face today and potential roadblocks in the future. HDRD processing capacity in Saskatchewan is a win-win for the economy, farmers, and the environment. All while it overcomes the hurdles of the more commonly known biodiesel additive. Now we just need to come up with a new name to reduce any confusion.