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.

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However, it said it has “serious concern” over the apparent exclusion of ethanol among the supported biofuel categories.

“The Canadian ethanol industry, a critical component of our national biofuels landscape and a major economic contributor, faces significant risks from this exclusion, particularly in Ontario,” RICanada said in a press release. “Local ethanol production not only supports rural economies but also offers a cost-effective method for significant emissions reductions in the transportation sector.”

Key points from RICanada in light of the 2024 budget

Economic impact: The biofuels sector in Canada generates billions of dollars in economic impact and supports tens of thousands of high-quality jobs, mainly in rural areas of Canada. Ethanol production provides a steadfast market for Canadian farmers, enhancing local agriculture and production facilities, it said.

Competitive disparity: The recent budget’s exclusion of ethanol will likely open the Canadian market to heavily subsidized imports, mainly from the United States, where the Inflation Reduction Act (IRA) incentivizes biofuel production including ethanol. This could undermine Canadian producers and rural economic stability, it said.

Global competitiveness and market stability: Aligning Canada’s biofuel incentives with those of nations like the United States is essential to secure Canada’s position in the global clean fuel market and to prevent outsourcing of potential investments. The omission of ethanol from the incentive framework skews the market in favour of imports, it said.

“RICanada appreciates the recognition from Deputy Prime Minister and Finance Minister Chrystia Freeland in yesterday’s budget, emphasizing the critical role and need to scale up biofuel production and innovation in Canada,” it said. “We are eager to continue our collaboration with the federal government to refine the Clean Fuels Funding program and for the integration of biofuels into Investment Tax Credits (ITCs), in addition to promoting the establishment of incentives for SAF and RD biofuel production infrastructures. These measures are crucial in catalyzing the growth of the industry, generating employment, and expanding economic opportunities throughout Canada.”

About RICanada

Founded in 1984, Renewable Industries Canada (RICanada) is a business coalition representing Canada’s first and foremost biofuel producers. RICanada membership includes the country’s largest and most innovative renewable fuel producers and industry experts. Member companies produce low-carbon ethanol, biomass-based diesels, sustainable aviation fuel, are innovating towards clean hydrogen production, and have $15 billion worth of prospective projects in Canada.

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At the start of 2024, I set out to focus my columns on life cycle carbon assessment (LCA), a topic that might seem unusual for a layperson like me. Yet, in over a decade of work on renewable policy, I’ve seen LCA transform from a niche technical field into a cornerstone of policy discussions in both Canada and the U.S.

Carbon-focused fuel and investment policies increasingly rely on LCA. Properly done, LCA spans supply chains, unifies markets, and sharpens investment opportunities for businesses and lawmakers aiming to improve environmental performance. Despite differing policy approaches, the growing significance of LCA signals a fundamental shift in how governments and investors assess sustainability.

Both Canada and the U.S. have designed renewable fuel policies based on carbon intensity. Canada’s Clean Fuel Regulations (CFR), replacing its renewable fuels standard, uses LCA to guide credit generation and compliance. This emphasizes reducing “well-to-wheel” emissions, allowing Canadian ethanol producers to align with international low-carbon markets.

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OTTAWA, ON, March 29, 2023 /CNW/ – Renewable Industries Canada (RICanada) thanks the Hon. Chrystia Freeland, Deputy Prime Minister and Finance Minister, and her team at Finance Canada, for their work to make Canada a more competitive place to invest in clean energy. Budget 2023 A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future‘s Clean Hydrogen investment tax credit and other measures will ensure that Canadian developers of low-carbon hydrogen projects will be better positioned in global markets.

The new Clean Hydrogen Investment Tax Credit is a welcome and important start to help attract capital and spur domestic production in Canada. However, not extending the same investment tools to domestic low carbon liquid biofuels production is concerning. As other countries aggressively incentivize low carbon liquid biofuels, hearing news of further consultations in Canada is disappointing.

Biofuels are a permanent and growing feature of net-zero ambitions in the United States and across Europe. Canadian policy announcements to date continue to lag these jurisdictions in amplitude and impact. RICanada is urging the federal government to work closely with the biofuels industry in Canada to accelerate its growth. Specifically, RICanada is asking the government to prioritize recommendations made by the biofuel industry and its partners in the agriculture sector in recent years, in relation to the Clean Fuel Regulations announced in 2016. These recommendations include accurate carbon accounting, incenting capacity building investments, carbon border adjustments and avoiding administrative pitfalls and delays that could prevent true carbon reductions, like biofuels, from being implemented effectively and remaining competitive in light of the incentives offered in the US.

“Renewable Industries Canada has long advocated for practical policy measures to improve Canada’s production and use of low carbon fuel. Budget 2023 is a step in the right direction that will help level the playing field for hydrogen production in Canada. However, Canada needs an entire suite of low-carbon fuels, in addition to hydrogen, to keep our economy moving and our environment clean. We look forward to continuing to work with the government to swiftly implement additional measures to grow domestic biofuel production and the economic benefits that come with that.”
– Andrea Kent, Board Member, RICanada

Founded in 1984, Renewable Industries Canada (RICanada) is a business coalition representing Canada’s first and foremost biofuel producers. With a mission to promote the use of value-added products made from renewable resources, our members work to raise consumer awareness, offer expertise on low-carbon policies and markets, and are helping build a sustainable future powered by clean technology and fuels.

Twitter: @renewcan

SOURCE Renewable Industries Canada

Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL

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Renewable Industries Canada (RICanada) is pleased the learn that Environment and Climate Change Canada (ECCC) published its guidance documentation for the Clean Fuel Regulations (CFR) which solves the issue of compliance for land use and biodiversity criteria.

RICanada has repeatedly advocated for the removal of burdensome red tape that was placed on farmers with regards to traceability criteria of biofuel feedstocks. The new guidance documentation no longer requires GPS coordinates from each plot of land farmed

for crop-based fuels, and only one set of GPS coordinates will be required per farm. This is a major step towards making it easier and fairer for Canadian farmers who provide feedstock for biofuels.

RICanada thanks ECCC for listening to its members and recognizing that the proposed requirements were too onerous and would cause unnecessary burdens on feedstock providers.

QUOTES 

” The CFR is an important piece as Canada continues to move towards net-zero and there can be no path to net-zero without biofuels playing a large role. Without our farmers, there is no Canadian biofuel story. The decision to simplify the process for feedstock

providers represents a major victory for common sense and will allow for farmers to spend more time doing what they do best – planting, growing, and cultivating crops – rather than endless hours wrapped up in red tape that is redundant and unnecessary.”– Andrea

Kent, Board Member, RICanada

The post Less red tape is a win for biofuels  appeared first on Renewable Industries Canada.

By design, the CFR favours lower-carbon alternatives to conventional fuels. Biofuels, like ethanol and biomass-based diesel, are the most affordable, available, and essential solution to climate change we have.

Fuel standards in British Columbia resulted in higher ethanol blending to meet emission targets. The wholesale price of ethanol is routinely lower than gasoline. In the United States (which supports up to 85% ethanol blends), a 15% ethanol blend can save a family 3.6 cents per litre CAD on average. 

National ethanol blending today is at least 5%, with some provinces, like Ontario, having more ambitious requirements. Based on the US experience, Canadian consumers stand to benefit from increased ethanol blending. For example, motorists in Atlantic Canada could be among the biggest winners as the gasoline biofuel level rises from a current 5% average to as high as 15% by 2030 with the CFR.

Renewable Industries Canada members have produced reliable, low-carbon fuels for decades and continue innovating to reach even lower carbon intensities. We look forward to working with customers and governments nationwide to ensure biofuels remain an impactful and economically sustainable contributor to reducing Canada’s emissions under the CFR due to their wide availability and lower price point.

For more information about Canada’s new national clean fuel standard, please see Environment and Climate Change Canada’s policy overview.

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OTTAWA, ON, Nov. 4, 2022 /CNW/ – Renewable Industries Canada (RICanada), which represents Canada’s lead biofuel producers, welcomes the measures laid out in the Fall Economic Statement (FES). The new investment tax credit for clean hydrogen, together with new details on the launch of the Canada Growth Fund and a Clean Technologies Investment Tax Credit, will help to keep Canada competitive in an increasingly high-stakes global investment climate.

RICanada members are pleased to see the FES reflect the realities faced by Canadian companies investing in clean hydrogen production. Specifically, the recent passage of the United States Inflation Reduction Act (IRA) offers enormous financial support to American hydrogen producers in order to attract rapid investment and anchor domestic production. The FES signals that Canada needs a strong response to the IRA to ensure that Canada is competitive in low carbon and net zero fuels, such as ethanol, renewable diesel, sustainable aviation fuel, and renewable natural gas – all of which benefit enormously under the US IRA.

“Our view is that it takes a number of pathways to reach net zero, but there is a gap between what is technologically available and commercially viable. This is a challenge we are working actively to solve and there are policy instruments that can help make these projects sustainable,” said Doug Dias, RICanada Board Member, before the November 3^rd meeting of the Standing Committee on Energy, the Environment and Natural Resources.

RICanada looks forward to continuing its engagement with the Government of Canada to ensure that existing funding mechanisms, such as the Clean Fuels Fund, are rolled out with expedited timelines in recognition of the current urgency around energy security and the fight against climate change. We also remain committed to working with all government departments to ensure Canada has quality data and sound systems in place for the accurate and bankable assessment of carbon on a full lifecycle basis. This is increasingly important as more government programs and incentives become tied to carbon reduction.

SOURCE Renewable Industries Canada

Dan Pfeffer, D.pfeffer@ricanada.org, 514.919.9822, RICanada.org

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RICanada has been pleased to be an active participant in the Government’s CFR Technical Working Group and public consultations since the policy was announced. Reflected in the final regulations were recommendations to simplify administrative burdens for biofuel feedstocks and the retirement of credits on exported fossil fuels. These important criteria will ensure the CFR reflects the sustainability of Canadian agriculture and aligns with other jurisdictions.

Biofuels are an essential solution to climate change and smart climate policies that support innovation will pave the road to net zero biofuels. The CFR will be instrumental in sending a clear signal to investors that Canada is ready for more clean and more cost-effective low-carbon fuels, like ethanol and biomass-based diesel.

Every year, Canada’s renewable fuel producers create $3.7B in gross economic benefits to our economy and have created over 14,000 jobs since 2007. RICanada’s technical analysis shows that using the CFR GHG calculation methodology, biofuel use in Canada today – including blending ethanol in gasoline and biomass-based diesel in diesel – reduces GHG emissions by 6.1MT annually, the equivalent of taking 1.2 million cars off the road each year.

About RICanada

Founded in 1984, Renewable Industries Canada (RICanada) represents the producers and supporters of clean, renewable fuels. Committed to raising consumer awareness and policy building, we have been the leading, national voice for Canada’s domestic biofuel industry for over 35 years. Our membership includes some of the largest and brightest biofuels producers, business innovators, agricultural leaders, and industry experts in the country.

For further information, contact: Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL, Twitter: @renewcan

Source: Renewable Industries Canada

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OTTAWA, June 23, 2021 (GLOBE NEWSWIRE) — Earlier this week, Renewable Industries Canada (RICanada) Board members appeared before the House of Commons Standing Committee on Natural Resources meeting on the Low-Carbon and Renewable Fuels Industry in Canada.

RICanada was established in 1984, representing the select few who embraced the challenge of developing and delivering clean, renewable fuels to market. Today, RICanada members proudly produce more liters of domestic, renewable fuel than the membership of any other domestic industry organization.

Appearing on behalf of RICanada were Malcolm West, EVP and CFO at Greenfield Global Inc., Canada’s leading ethanol producer, and Scott Lewis, EVP Commercial Operations and Strategy at World Energy, a global leader in the production of biomass-based diesel and sustainable aviation fuel. Both testified on the proven efficacy and sustainability of Canada’s biofuels, and the success of sound government policies in creating demand and attracting investment for renewable fuels across North America. They also explained the importance of biofuel blending and innovation to achieving Canada’s net-zero targets in an economically sound manner.

Quotes

“The challenge is that the transportation industry is too massive to slow down, but too impactful on the environment to ignore. RICanada members found a way to solve this challenge through innovative, modern biofuels. Ethanol is typically more affordable than gasoline, acts as an octane enhancer promoting vehicle performance, burns more efficiently, and can be used with existing infrastructure. In addition, existing technologies and enhanced farming practices can make ethanol a net-zero fuel – or even net-beneficial for the environment.”

– Malcolm West
EVP and CFO 
Greenfield Global Inc.

“Today, right here in Ontario, World Energy produces a biodiesel that exceeds net-zero standards, as measured by lifecycle analysis. We are able to do this by taking waste, like used cooking oils from restaurants and animal fats from slaughterhouses — and transforming them into fuel. We also have the technology right now to make renewable diesel using other ingredients that would meet net-zero requirements.”

– Scott Lewis
EVP Commercial Operations and Strategy
World Energy Inc.

View RICanada’s full remarks here: https://ricanada.org/resources_type/opening-statement-rnnr/

For further information, contact: Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL, Twitter: @renewcan

Source: Renewable Industries Canada

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As part of the multi-year CFR consultation, RICanada provided input to ensure the policy works for fuel producers, fuel suppliers, agriculture, and consumers. These contributions included recommendations from Canadian businesses, market leaders, economists, and subject matter experts to help ensure: the precise and effective measuring of fuels’ carbon intensity, removing barriers for low carbon fuel blending and adoption, and fair recognition of sustainable agriculture practices.

RICanada’s key recommendations to Environment and Climate Change Canada (ECCC) on the proposed regulation are:

• Maintain the proposed timeline with publication of final regulations by the end of 2021 and early action credit generation immediately upon publication of final regulations. The full regulations should come into force by December 2022.
• Release all available details of the ECCC Life Cycle Analysis model to enable early action by obligated parties and investments by low-carbon fuel producers.
• Reduce regulatory burden by confirming an aggregate recognition of U.S. and Canadian farming practices as sustainable. Simplify farm-level declarations in jurisdictions where there is aggregate recognition of sustainability.
• Remove barriers to blending higher levels of biofuel including ethanol (E15 – E85) and accelerate adoption of sustainable aviation fuel (SAF).

About RICanada

Founded in 1984, Renewable Industries Canada (RICanada) represents the producers and supporters of clean, renewable fuels. Committed to raising consumer awareness and policy building, we have been the leading, national voice for Canada’s domestic biofuel industry for over 35 years. Our membership includes some of the largest and brightest biofuels producers, business innovators, agricultural leaders, and industry experts in the country

For further information, contact: Dan Pfeffer, Renewable Industries Canada, d.pfeffer@ricanada.org, T: 1-833-4-RN-FUEL, Twitter: @renewcan

Source: Renewable Industries Canada

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