1 00:00:04,240 --> 00:00:07,080 So you probably think of canola oil 2 00:00:07,080 --> 00:00:09,300 is just something you put on the frying pan. 3 00:00:09,300 --> 00:00:12,180 But a lot of it now ends up in diesel tanks. 4 00:00:12,180 --> 00:00:15,400 Canola is by far Canada's most valuable crop, 5 00:00:15,400 --> 00:00:18,059 generating $3.7 billion in 6 00:00:18,059 --> 00:00:21,160 farm cash receipts in the first three months of the year. 7 00:00:21,160 --> 00:00:24,040 And a growing source of that value is in energy. 8 00:00:24,040 --> 00:00:25,160 The climate policy that 9 00:00:25,160 --> 00:00:26,760 started under the Harper government 10 00:00:26,760 --> 00:00:29,960 pushed refineries to add cleaner sources to the mix. 11 00:00:29,960 --> 00:00:31,760 And that's where canola comes in. 12 00:00:31,760 --> 00:00:33,260 So how does it work? 13 00:00:33,260 --> 00:00:34,920 First, the seeds are crushed, 14 00:00:34,920 --> 00:00:37,799 separating the oil from the solid part of the seed, 15 00:00:37,799 --> 00:00:39,200 which is called meal. 16 00:00:39,200 --> 00:00:41,520 After that, the oil can go two ways. 17 00:00:41,520 --> 00:00:44,680 It can either become cooking oil or it can be sent into 18 00:00:44,680 --> 00:00:48,360 the fuel system as a raw material for renewable diesel. 19 00:00:48,360 --> 00:00:51,179 So now we get to the refinery and the canola oil, 20 00:00:51,179 --> 00:00:53,260 it can't just be mixed into the diesel. 21 00:00:53,260 --> 00:00:56,760 It has to be processed further before it can become fuel. 22 00:00:56,760 --> 00:00:57,960 The simple version. 23 00:00:57,960 --> 00:00:59,560 Well, the refinery upgrades 24 00:00:59,560 --> 00:01:01,399 the oil so that the finished product 25 00:01:01,399 --> 00:01:03,580 becomes chemically similar to 26 00:01:03,580 --> 00:01:05,719 regular petroleum based diesel, 27 00:01:05,719 --> 00:01:08,520 and that finished fuel is renewable diesel. 28 00:01:08,520 --> 00:01:11,239 And drivers, they might not even notice it at the pump 29 00:01:11,239 --> 00:01:14,100 because it can move directly into the diesel supply. 30 00:01:14,100 --> 00:01:15,920 The refining process is known as 31 00:01:15,920 --> 00:01:18,180 Co-processing. And get this. 32 00:01:18,180 --> 00:01:19,760 Existing refineries, they can 33 00:01:19,760 --> 00:01:21,880 actually handle renewable feedstocks 34 00:01:21,880 --> 00:01:26,260 like canola oil alongside regular petroleum operations. 35 00:01:26,260 --> 00:01:28,599 That means refiners don't always have to build 36 00:01:28,599 --> 00:01:31,360 a brand new plant totally from scratch. 37 00:01:31,360 --> 00:01:33,259 They can actually just add the equipment to 38 00:01:33,259 --> 00:01:35,300 the sites that already exist. 39 00:01:35,300 --> 00:01:38,440 And really, that's the way Canada's already moving. 40 00:01:38,440 --> 00:01:41,720 Ten out of 18 oil refineries in Canada have either 41 00:01:41,720 --> 00:01:45,200 finished or are working on equipment for renewable fuels. 42 00:01:45,200 --> 00:01:47,180 And it's huge for farmers. 43 00:01:47,180 --> 00:01:49,019 According to an industry group, 44 00:01:49,019 --> 00:01:50,040 about a third of 45 00:01:50,040 --> 00:01:53,320 Canadian canola now ends up in the fuel industry. 46 00:01:53,320 --> 00:01:55,760 Some of that canola stays in Canada, 47 00:01:55,760 --> 00:01:59,420 but some also gets exported to the US and Europe. 48 00:01:59,420 --> 00:02:01,319 Either way, the fuel market is now 49 00:02:01,319 --> 00:02:03,300 a major customer for the crop. 50 00:02:03,300 --> 00:02:06,680 Imperial Oil Strathcona refinery just near Edmonton, 51 00:02:06,680 --> 00:02:08,720 shows what this can look like at scale. 52 00:02:08,720 --> 00:02:13,639 With a $720 million renewable diesel facility 53 00:02:13,639 --> 00:02:16,640 that just came online in July 2025. 54 00:02:16,640 --> 00:02:18,560 That facility alone can yield 55 00:02:18,560 --> 00:02:22,100 1,000,000,000l of renewable diesel annually. 56 00:02:22,100 --> 00:02:25,400 That's a big Canadian example of canola just moving from 57 00:02:25,400 --> 00:02:29,060 farm supply chains into fuel production and geography. 58 00:02:29,060 --> 00:02:31,520 Well, that helps massively to a lot of 59 00:02:31,520 --> 00:02:34,920 Canadian refineries are actually close to canola country. 60 00:02:34,920 --> 00:02:36,080 So the crop and 61 00:02:36,080 --> 00:02:38,920 the fuel plants are often not too far apart. 62 00:02:38,920 --> 00:02:40,440 So in the end, it's not really 63 00:02:40,440 --> 00:02:42,520 about replacing traditional diesel. 64 00:02:42,520 --> 00:02:43,800 It's more of a way to lower 65 00:02:43,800 --> 00:02:46,199 the carbon intensity of fuel that trucks, 66 00:02:46,199 --> 00:02:51,240 farms, mines and industry still use every day.