ABFC: New federal biofuels program levels playing field for Canadian producers, farmers

Advanced Biofuels Canada (ABFC) welcomed the Sept. 5 announcement by the government of Canada that introduces a per-liter production credit and proposes targeted changes to the Clean Fuel Regulations, providing tangible support for Canadian-produced clean fuels.

“Canada is at a critical crossroads,” said ABFC President Fred Ghatala. “The U.S. Inflation Reduction Act has reshaped global energy markets and created a systemic imbalance, leaving Canadian producers at a severe competitive disadvantage, even in our own domestic marketplace. Today’s announcement is welcome. It gives our domestic biofuels sector the chance not only to compete, but to grow.”

ABFC said this new program will help restore competitiveness for domestic producers, enabling facilities to restart operations and expand capacity, and will shore up struggling feedstock markets.

“The clean-fuels sector continues to prove it can deliver on government priorities,” ABFC stated.

At full production, Canadian biorefineries contribute CAD$19.8 billion (USD$14.3 billion) to the Canadian economy, according to the organization.

“With the right fiscal and policy signals, Canada’s biofuels sector, already supporting over 30,000 jobs, can by 2030 expand production to generate CAD$44.4 billion (USD$32.1 billion) in economic output and sustain more than 60,000 jobs,” ABFC stated.

Ghatala pointed out that biofuels support Canadian farmers by turning crops like canola into clean fuels to reinforce energy security, de-risk global trade headwinds and drive clean-energy investments.

“Biofuels connect rural fields to urban fuels, supporting Canadian farmers while building a sustainable economic and energy future for all Canadians,” he said.

Since the July 2022 IRA announcement, ABFC said it has worked closely with the government and advocated for this much-needed program.

“ABFC will continue to provide data and analysis to support informed, evidence-based decision-making,” the organization stated.

ABFC members operate over 32 billion liters (8.45 billion gallons) of low-carbon fuel production capacity globally and are significant suppliers to renewable and low-carbon fuel in Canada and worldwide.