SASKATOON — Canada has rapidly become the world’s second largest importer of soybean oil, according to a new report by the U.S. Department of Agriculture.
Imports are expected to reach 800,000 tonnes in 2025-26, up from slightly more than 600,000 tonnes the previous year and basically nothing five years ago.
“This dramatic rise is almost entirely due to the start of renewable diesel production in Newfoundland and facilitated by expanding trade with Argentina,” the USDA’s Foreign Agricultural Service stated in the Oilseed: World Markets and Trade report.
The shift started in September 2023 when the first shipment of Argentine soybean oil arrived in Newfoundland and Labrador to supply a newly converted refinery.
Braya Renewable Fuels began commercial operations at its plant in Come by Chance in February 2024.
The once-idled petroleum refinery is now producing 18,000 barrels per day of renewable diesel.
Why it Matters: Canada’s renewable diesel sector is rapidly expanding and so is feedstock demand.
The Argentine oil has been certified as a low carbon feedstock. That, coupled with its low cost, makes it an attractive option for the renewable diesel plant.
“Port loading data from Argentina confirms new shipments of soybean oil are headed for Canada in 2026,” stated the FAS.
So why is Braya importing soybean oil from Argentina rather than using domestically produced product?
Braya did not respond to requests for comment, but Ian Thomson, past president of Advanced Biofuels Canada, said domestically produced soybean oil is spoken for, and new biofuel demand for the product must be met through imports.
“If you are on tidewater, such as Braya, or accessible from bulk tankers such as Verbio on the Welland Canal, waterborne soybean oil will be an attractive feedstock,” he said in an email.
“Canada’s equivalent to the Jones Act, called the Coasting Act, also presents logistical and cost challenges to Canadian producers, and that may be contributing to feedstock choices.”
The Braya plant had periods of “stalled operations” in 2025. The expiry of the U.S. blender’s credit in December 2024 made it uneconomical to ship the fuel to that market.
The new 45Z production tax credit that replaced the blender’s credit does not apply to imported renewable fuel.
“However, renewed interest from the California fuel market is currently fueling operations,” stated the report.
Canada shipped 2.1 billion barrels of renewable diesel to the United States in 2025, a 26 per cent drop from the previous year, according to data from the U.S. Energy Information Administration.
There were no shipments of the fuel to the U.S. during the March through July period, but they picked up again during the August through December stretch.
