Tidewater Renewables welcomes new Canadian biofuels production incentive

Tidewater Renewables Ltd., owner of a renewable diesel production facility in British Columbia, Canada, welcomed Sept. 8 the Canadian government’s announcement of a new biofuels production incentive and support for its domestic biofuels sector.

The government of Canada announced Sept. 5 that it intends to introduce a new biofuels production incentive, a time-limited production incentive that will provide more than CAD$370 million (USD$267.7 million) over two years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel.

The incentive is expected to be provided on a per-liter basis to eligible Canadian producers of biodiesel and renewable diesel and is expected to be available from January 2026 to December 2027 for up to 300 million liters (79.3 million gallons) per facility.

Further details about the incentive are expected from Natural Resources Canada in the coming weeks.  

Tidewater Renewables’ renewable diesel refinery in Prince George, British Columbia, is expected to produce between 150 million and 170 million liters (between 39.6 million and 44.9 million gallons) per year during 2026 and 2027.

This anticipated production positions the corporation to benefit from the announced program and is expected to support improved cash flow and returns over the eligible period.

The government of Canada also announced its intention to make targeted amendments to the federal Clean Fuel Regulations, and to work with provinces and territories to explore a more complementary approach to ensure the domestic low-carbon fuels industry thrives now and in the future.

“We are grateful for the support from the government of Canada in leveling the playing field for Canadian renewable fuel producers and assisting Canada’s canola producers, who are critical feedstock suppliers to the corporation’s renewable diesel facility,” said Jeremy Baines, CEO of Tidewater Renewables.

“Once implemented, the measures announced today are expected to help support a competitive future for the Canadian renewable fuels industry and support the corporation’s future profitability and liquidity,” he said.