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Panelists point to biofuels demand but say refinery and rendering capacity must catch up
Summary
Leaders from Saskatchewan, Washington and Montana said demand for biodiesel, ethanol and sustainable aviation fuel offers new markets for farmers and processors but noted political trade‑offs and a lack of refinery/rendering capacity and incentives.
Speakers at PENWR described growing market opportunities for biofuels but stressed that infrastructure and policy will determine outcomes.
"If somebody else wants my product, I love that," David Merritt, Saskatchewan’s agriculture minister, said when discussing canola and biodiesel demand. Merritt noted cross‑border flows of canola oil used for biodiesel that then moves between Canada and the U.S.
Derek Sandison, director of the Washington State Department of Agriculture, said the bottleneck is refinery capacity: "We can grow the crop... but it's getting the market conditions right that there's incentives for the producers to actually invest in the refinery capacity." Mike Hunnicutt added that livestock byproducts such as beef tallow could supply sustainable aviation fuel and make small processors more viable, while cautioning that many small processors lack rendering facilities.
Panelists flagged the political debate about "food vs. fuel" and said federal mandates and subsidies shape market uptake. They recommended targeted incentives and regional investment in processing and rendering capacity to turn byproducts into marketable feedstocks, and to capture more value in the region for both producers and small processors.
The session included no formal policy action; participants encouraged continued regional collaboration to align incentives and infrastructure.
