The development of Canada’s biofuels sector is Government of Canada’s 2024 budget was announced on April 16, but it is notable that ethanol was not included in the list of renewable fuel categories receiving support.
The budget included a $776 million commitment to a reorganized Clean Fuels Fund to promote the production of renewable diesel, sustainable aviation fuels, and renewable natural gas, but not ethanol. was not mentioned.
Renewable Industries Canada (RICanada, formerly known as the Canadian Renewable Fuels Association) issued a statement saying it was “gravely concerned by the apparent exclusion of ethanol from the supported biofuel categories.” Stated.
This exclusion poses significant risks to Canada’s biofuels sector, particularly in Ontario, and could bias the market toward more imports, ReCanada said.
“The exclusion of ethanol in the recent budget opens up the Canadian market to heavily subsidized imports, primarily from the United States, where the Inflation Control Act (IRA) incentivizes biofuel production, including ethanol. “This is likely to happen,” the biofuels organization said. “This could undermine the economic stability of Canadian producers and provinces.”
The group argues that Canada’s biofuel incentives need to be aligned with U.S. incentives to ensure Canada’s place in the growing clean fuel market.
The government also said it would spend up to $500 million a year to support biofuel production from clean fuel compliance payment proceeds.
Although ReCanada is concerned about the exclusion of ethanol, we appreciate Deputy Prime Minister and Minister of Finance Chrystia Freeland’s recognition in the Budget and will continue to work with the federal government to improve the Clean Fuels Fund program. He said he is keen to integrate biofuels into his investments. Promote the establishment of tax credits (ITCs) and incentives for sustainable aviation fuel and renewable diesel production facilities.
