The Atlantica Centre for Energy explored two common biofuels used today in Biofuels 101: Biodiesel and Ethanol. While there are several other types of biofuels growing in importance, renewable diesel may play a particularly important role in Atlantic Canada’s energy future.

What is renewable diesel?

Renewable diesel is a synthetic fuel also known as hydrogenation derived renewable diesel (HDRD), hydrotreated vegetable oil (HVO) or green diesel.

Like biodiesel, it is produced using organic materials for feedstock such as vegetable oils (canola, sunflower, soy) or animal fats. Unlike biodiesel though, renewable diesel is commonly produced using a hydrogenation process, unlike biodiesel which is made using transesterification.

The traditional hydrogenation (hydrotreating) process parallels the process used to “crack” crude oil into petroleum (conventional) diesel, gasoline and other petroleum products in a crude oil refinery. Because of this, existing petroleum refineries can be converted for renewable diesel. In this traditional hydrotreating process, the feedstock reacts with hydrogen under elevated temperatures and pressures in the presence of a catalyst.

farmdoc daily (13):22: Biodiesel and Renewable Diesel: What’s the Difference?

Once finished, the renewable diesel is chemically like conventional diesel and can be used the same way.

Other production pathways for renewable diesel include: biological sugar upgrading; catalytic conversion of sugars; gasification; pyrolysis; and, hydrothermal processing.

Is renewable diesel being made or used in Canada?

Canada’s demand for renewable diesel is growing and made up 1.6% of all diesel demand nationally in 2021 (9 mb/d). However, in 2021, no renewable diesel was produced in Canada, so everything used was imported.

As of early 2024, seven new renewable diesel production facilities were operating, under construction or planned.  Together, these facilities would produce up to 70 mb/d. One of first renewable diesel producers in Canada is the Braya Renewable Fuels refinery in Come by Chance, Newfoundland and Labrador, who produces 18 mb/d. Irving Oil also produces 0.4 mb/d of renewable diesel at its Whitegate refinery in Cork County, Ireland.

Canada Energy Regulator: Existing and Planned Canadian Renewable Diesel Facilities Map

What are the advantages of renewable diesel over biodiesel?

Renewable diesel has several advantages over biodiesel:

  • Drop-in fuel:

As renewable diesel can be chemically identical to conventional diesel, it is considered a drop-in fuel; it can work in diesel engines used today. For example, in Ireland some trucking companies are transitioning use exclusively to 100% renewable diesel (R100). This is different from biodiesel which would limit blending to up to 20% (B20) where the weather permits.

  • Weather:

Unlike renewable diesel, biodiesel has a relatively high temperature where it will begin to freeze and form visible crystals. The ability to use it in the winter, especially in Canada, is very limited (e.g. up to B2).

  • Storage and transportation:

Biodiesel has a different chemical composition than conventional diesel and renewable diesel so it cannot be stored or transported without modifying existing infrastructure and processes. For example, biodiesel can cause oxidation (corrosion) over time.

  • Common infrastructure and process:

Renewable diesel production facilities are increasingly converted parts of crude oil refineries or complete conversions of refineries. Some are entirely new refinery facilities.  However, because crude oil refining technology is used to produce renewable diesel, the capital costs are higher to produce renewable diesel compared to biodiesel.

What role will renewable diesel play in Atlantic Canada’s net zero future?

Biofuels like renewable diesel are expected to be increasingly important to help hard-to-abate sectors decarbonize in Atlantic Canada. These sectors include as transportation, aviation, and heavy industry.

As renewable diesel can be produced and used with relatively few infrastructure upgrades, it is an appealing alternative to conventional diesel when the price is economical.

Atlantic Canada’s strengths to produce renewable diesel and similar biofuels include existing refining infrastructure and skilled workforce, port access and proximity to Europe, and an abundance of available space to develop low-carbon hydrogen. For example, ABO Energy Canada, Miawpukek First Nation (MFN) and Braya Renewable Fuels are developing the Toqlukuti’k Wind and Hydrogen Project ,which aims to harness wind energy to produce green hydrogen for the Braya Refinery in Come by Chance.

CBC News, The National: ‘Green diesel’ business booms at revitalized NL refinery

Atlantic Canada has one renewable diesel refinery operating and could see additional refineries and/or capacity added to produce renewable diesel and, potentially, sustainable aviation fuel (SAF). However, in the short-to medium-term, it is reasonable to expect these fuels to be produce and exported to markets willing to pay more for the product (e.g. California, Europe).

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