By the time you read this in March, President Trump will have been inaugurated, and Canada will be preparing for its next federal election under new Liberal leadership. With Republicans in Washington and Conservatives surging in Canada, both countries are at a crossroads. Policies that deliver real economic, environmental and rural benefits will take center stage—and ethanol is uniquely positioned to deliver.
Canada’s demand for clean fuel makes it the top buyer of U.S. ethanol, importing 639 million gallons annually—45% of all U.S. exports—while supporting 395,000 U.S. rural jobs. The U.S. ethanol industry produces 10% more fuel than it consumes, with Canada filling the gap by importing to meet its ethanol needs. This symbiotic relationship highlights the strength of cross-border trade in renewable fuels, benefiting farmers and consumers seeking affordable, cleaner energy options.
Since Canada’s Clean Fuel Regulations took effect in 2023, ethanol consumption has jumped 20%, reaching 3.4 billion litres. Domestic production, led by companies like Greenfield Global, Suncor and IGPC, is strong, but U.S. imports remain key to meeting the increased demand. For U.S. producers, Canada provides a stable export market for ethanol and corn, supporting agricultural livelihoods and bolstering rural economies.
Ethanol’s benefits go far beyond trade statistics. In both countries, the sector creates rural jobs, strengthens farming communities and yields measurable environmental benefits. In 2023 alone, U.S. ethanol added $54.2 billion to GDP, showing the strength and value of this renewable resource. Recent advances in carbon capture and low-carbon feedstocks have improved ethanol’s environmental impact, making it central to reducing transportation emissions while preserving consumer choice.
As the last decades in both countries have shown, ethanol is more than just a fuel—it’s a solution to shared challenges and an industry built on shared values. With new leaders and administrations taking office, policymakers in Canada and the U.S. have fresh opportunities to strengthen economies, drive innovation and invest in rural communities. Ethanol delivers on all three fronts and deserves an expanded role in our shared energy future.
Author: Andrea Kent
Past-President and Board Director
Renewable Industries Canada