Advanced Biofuels Canada welcomes federal-budget focus on strategic industries, energy security

Advanced Biofuels Canada announced Nov. 4 that it applauds Canada’s federal government for a budget that puts the economy first with a targeted focus on strategic industries.

Strengthening domestic production and supply chains is vital to Canada’s energy security, which is inseparable from safeguarding Canada’s economic security, the association stated.

Advanced Biofuels Canada said it supports measures that anchor value-added investment and jobs in Canada and cut import dependence.

At full output, Canadian biorefineries add over CAD$19 billion (USD$13.5 billion) annually to the economy and support 30,000 jobs.

Building on the prime minister’s Sept. 5 announcement to protect Canadian biofuel investments and workers from subsidized imports, Advanced Biofuels Canada said it welcomes the government’s commitment to implement the time-limited biofuels production incentive and targeted amendments to the Clean Fuel Regulations.

The announced incentive will provide CAD$372 million (USD$263.7 million) in support for Canadian biodiesel and renewable diesel producers from January 2026 to December 2027, while the government works with provinces and territories on complementary measures and advances targeted amendments to the Clean Fuel Regulations.

The budget also detailed Canada’s “Climate Competitiveness Strategy” and a set of tax measures to “supercharge growth.”

The strategy is defined as a “central pillar of the government’s plan for Canada to become the strongest economy in the G7” by focusing on “driving investment, not on prohibitions, and on results, not objectives.”

Fred Ghatala, the president of Advanced Biofuels Canada, said, “Today’s budget and the biofuels production incentive move Canada forward by diversifying and growing our domestic production of low-emission fuels. Canada’s biomass-based diesel producers—and feedstock suppliers—need predictable, stable demand and fiscal conditions to counter market barriers from tariff and nontariff trade barriers. With smart, targeted support for domestic producers, Canada can keep biorefineries operating and build resilient demand for Canadian feedstocks such as canola. The investment signals in Budget 2025 should attract new capital to expand clean-fuel production capacity in Canada. Access to these measures can restore competitiveness of new capital investments, scale low-carbon fuel production, reduce reliance on imported fuels and advance economic security through energy security.”

Recent analysis by Navius Research shows renewable fuel blending delivers measurable economic gains.

In 2024, ethanol blending lowered wholesale gasoline costs in Canada by CAD$1.7 billion (USD$1.2 billion), saving consumers about 7 cents per liter and supporting household budgets and business competitiveness.

Biofuel blending in diesel fuel modestly increased wholesale costs by 2.5 cents per liter while delivering significant climate benefits—the average carbon intensity of biomass-based diesel fuels is 86 percent lower than fossil diesel.

When taken together, clean fuels provide fuel-cost savings for Canadians.

Advanced Biofuels Canada said it will continue working with federal departments as well as provinces and territories to provide data, analysis and practical, actionable recommendations so these new policy measures translate into stable operations, secure jobs, stronger rural economies and durable, made-in-Canada supply chains that serve both domestic needs and the growing global demand for clean fuels.

Advanced Biofuels Canada is the national industry voice for producers, distributors and technology providers of nonfossil, low-carbon and sustainable fuel replacements to gasoline, diesel, jet and marine fuels.

Its members operate over 45 billion liters (11.9 billion gallons) of low-carbon fuel production capacity globally and are significant suppliers to renewable and low-carbon fuel in Canada and worldwide.