Food companies and the energy industry are fighting it out over … vegetable oil

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The raw materials of \u0027renewable diesel\u0027 are typically edible oils

The push has alarmed food companies coping with record prices for many edible oils this year. But the energy sector is just whetting its appetite in the vegetable oil market, according to analysts and public announcements from refining companies.

In food and agricultural circles, “it’s become the diesel vs doughnuts debate as food and fuel compete for that oil”, said David Widmar, an agricultural economist and consultant. Tensions are at their highest in the U.S., where federal policy and low-carbon fuel mandates in states such as California are driving heavy investment in renewable diesel production capacity.

Oil companies have flocked to renewable diesel markets over the past two years. Last month, ExxonMobil proposed a renewable diesel investment in Canada. Independent oil refiners Marathon, Phillips 66 and HollyFrontier are also pursuing projects.

 

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Meanwhile, the world’s largest canola crushing plant (and a smaller one) is being built just north of Regina.

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