A stronger domestic biofuels industry benefits Canada’s economy, environment and national security

Advanced Biofuels Canada welcomed the release of a new government report, “Growing a Resilient Canadian Biofuel Sector,” and the recognition by Canada’s energy and mines ministers that increasing domestic biofuels production is an important part of strengthening Canada’s energy security and global competitiveness. 

The report states that “a stronger domestic biofuels industry could benefit the economy, environment and national security.”

It also identifies opportunities to grow Canadian production, reduce reliance on imports, support domestic feedstock supply chains, reduce emissions and improve Canada’s competitiveness in the global low-carbon fuels market. 

Canada must respond to U.S. biofuel subsidies that are creating a competitive disadvantage for Canadian producers, while growing domestic production to strengthen energy security, reduce reliance on imports and ensure Canadian-made biofuels can compete in the global low-carbon fuels market. 

“Canada’s biofuels sector is a clear economic and national security opportunity,” said Fred Ghatala, the president of Advanced Biofuels Canada. “At a time of global trade uncertainty and energy-market volatility, Canada has an opportunity to turn its domestic advantages into long-term economic strength. We have the feedstocks, production expertise and market-based policy mix to build a stronger domestic biofuels sector that supports jobs, strengthens supply chains and keeps more value here at home.”

Advanced Biofuels Canada also welcomes the outcome of the 2026 Energy and Mines Ministers’ Conference, where federal, provincial and territorial ministers discussed working toward meeting 60 percent of domestic demand for biofuels through Canadian production by 2030.

Ministers also agreed to continue discussions on increasing Canadian biofuels production, including the potential for domestic sustainable aviation fuel (SAF) production, to grow the biofuel sector while improving Canada’s energy security. 

“Sustainable aviation fuel is an example of why domestic production enabled through clear policy matters,” Ghatala added. “Canada’s aviation sector depends heavily on imported fuel, and global competition for SAF investment is accelerating. A made-in-Canada SAF industry would strengthen aviation fuel security, create new markets for Canadian feedstocks and position Canada to compete in one of the fastest-growing low-carbon fuel markets in the world.”

Advanced Biofuels Canada said it looks forward to continuing to work with federal, provincial and territorial governments to advance practical measures that strengthen domestic production, improve competitiveness, support affordability, expand market access and capture the economic, environmental and national-security benefits of a resilient Canadian biofuels sector.