Canada’s biofuel industry is welcoming a proposed multi-billion dollar package of financial support from the federal government, although concerns remain about whether it will be enough to compete with lucrative subsidies south of the border and reverse the growing dependence on U.S. imports to meet clean fuel regulations.
The federal government is committing $1.27 billion toward building new biofuel facilities through funding from the Canada Infrastructure Bank and a change to the Clean Fuels Fund.
This month’s federal budget also included the creation of a biofuel production fund, worth up to $500 million annually, which would be similar to a production tax credit and subsidize the ongoing operations of a facility.
“We were pleased to see something in the budget,” said David Schick, a vice-president with the Canadian Fuels Association.
Biofuels can be produced from a variety of materials like corn, animals fats and vegetable oils to produce ethanol, renewable diesel and sustainable aviation fuel. Biofuels vary in greenhouse gas emissions, but generally produce lower emissions than traditional gasoline and diesel because they burn cleaner.
As government regulations in Canada are increasing the need for biofuels, imports from the U.S. have also climbed. In 2023, Canadian imports of U.S. fuel ethanol jumped 40 per cent compared to 2022, to 1.76 billion litres.
There are about $10-billion worth of proposed facilities to make biofuels from Canadian raw materials in the country, said Schick, and the new federal support will help support those projects, while helping the economy and environment.
“It’s really as simple as make versus buy,” said Schick.
“The U.S. programs are going to create a lot of product to come onto the market. We don’t want to be in a situation in Canada where we lose all of that tremendous construction and operational capacity on feedstocks and operating these facilities to make these low-carbon products, where the alternative is just bringing them in from the States.”
Details, implementation uncertain
For several years the sector has lobbied Ottawa to take action in response to the U.S. government’s Inflation Reduction Act (IRA), a massive clean energy program. With its lavish subsidies toward many types of low carbon energy, the IRA has attracted investment from around the world to the U.S.
A clean fuel production tax credit included in the IRA that aims to boost the biofuel industry begins January 1, 2025.
In this month’s budget, the federal government states, “Not only do [biofuels] generate fewer greenhouse gas emissions compared to fossil fuels, they also represent a unique opportunity for the Canadian economy. The industry supports agriculture and forestry jobs and can help decarbonize key sectors like marine, aviation, rail, and heavy industry.”
The new federal government subsidies will help level the playing field compared to the IRA, said Schick, although a gap still remains.
“It’s somewhere in between a wide margin and comparable. We’re trying to understand how the details are going to play out,” he said.
![An industrial site.](https://i.cbc.ca/1.6880025.1686957906!/fileImage/httpImage/image.jpg_gen/derivatives/original_780/tidewater.jpg)
Growing the biofuels sector with canola is a “game-changer for our industry,” said Chris Vervaet, executive director of the Winnipeg-based Canadian Oilseed Processors Association.
Instead of continuing to export large amounts of canola to be processed overseas, Vervaet would like more refining in Canada to have a more diversified market for canola.
“This was a good announcement and we support it wholeheartedly in terms of a clear signal that the government is willing to support biofuel production in this country,” said Vervaet, although he will watch closely how the federal government policies will be implemented.
Several biofuel facilities are already operational or under construction, including the Come by Chance refinery in Newfoundland and Labrador, which celebrated its conversion from a traditional oil refinery to a biofuel facility this week. The complex converts animals fats and vegetable oils into renewable diesel fuel.
CBC’s Garrett Barry outlines what happened, and when, at the Come By Chance refinery.
Replacing traditional diesel with either biodiesel or renewable diesel can reduce the carbon intensity of the fuel by about 90 per cent, according to Navius Research. However, the environmental benefit of biofuels can vary greatly based on what source material is used, such as whether it’s from waste or crops grown specifically for fuel.
A reduction in the emission from using biofuels can come at the expense of other environmental impacts in different parts of the world, some research has shown, such as as acidification, water footprint and biodiversity loss.
The new federal incentives, in addition to existing subsidies from some provincial governments, could level the playing field with what’s offered in the U.S., said Doug Hooper, the director of policy and regulation with Advanced Biofuels Canada.
“It’s pretty hard to do an apples-to-apples comparison, but I think it moves the ball well down the field for Canadian projects to move forward and expand the the current production capacity,” he said.
The federal budget will help get more projects built, said Hooper, although some companies are hesitant to invest in a new facility because of the uncertainty surrounding a possible change in government. Fuel regulations, carbon taxes, and subsidy programs could all be impacted, he said.
The federal government’s clean fuel regulations aim to reduce the carbon intensity of gasoline and diesel by about 15 per cent by 2030 compared to 2016 levels.
[토토사이트] 카지노커뮤니티 이용으로 먹튀검증 및 토토사이트 먹튀를 예방하세요.
토토사이트 추천: https://www.krrun.com/
Simply wish to say your article is as amazing The clearness in your post is just nice and i could assume youre an expert on this subject Well with your permission let me to grab your feed to keep updated with forthcoming post Thanks a million and please carry on the gratifying work
Your blog is a treasure trove of valuable insights and thought-provoking commentary. Your dedication to your craft is evident in every word you write. Keep up the fantastic work!
Hi i think that i saw you visited my web site thus i came to Return the favore I am attempting to find things to improve my web siteI suppose its ok to use some of your ideas
This article was incredibly insightful! I was captivated by the thoroughness of the information and the clear, engaging way it was delivered. The depth of research and expertise evident in this post is remarkable, significantly elevating the content’s quality. The insights in the opening and concluding sections were particularly compelling, sparking some ideas and questions I hope you will explore in future articles. If there are any additional resources for further exploration on this topic, I would love to delve into them. Thank you for sharing your expertise and enriching our understanding of this subject. I felt compelled to comment immediately after reading due to the exceptional quality of this piece. Keep up the fantastic work—I’ll definitely be returning for more updates. Your dedication to crafting such an excellent article is highly appreciated!
I just like the helpful information you provide in your articles
[먹튀검증사이트] 에서 안전한 토토사이트 추천 정보를 제공합니다. 먹튀 보증 업체 이용으로 토토사이트 먹튀를 예방하세요.
This piece was incredibly enlightening! The level of detail and clarity in the information provided was truly captivating. The extensive research and deep expertise evident in this article are truly impressive, greatly enhancing its overall quality. The insights offered at both the beginning and end were particularly striking, sparking numerous new ideas and questions for further exploration.The way complex topics were broken down into easily understandable segments was highly engaging. The logical flow of information kept me thoroughly engaged from start to finish, making it easy to immerse myself in the subject matter. Should there be any additional resources or further reading on this topic, I would love to explore them. The knowledge shared here has significantly broadened my understanding and ignited my curiosity for more. I felt compelled to express my appreciation immediately after reading due to the exceptional quality of this article. Your dedication to crafting such outstanding content is highly appreciated, and I eagerly await future updates. Please continue with your excellent work—I will definitely be returning for more insights. Thank you for your unwavering commitment to sharing your expertise and for greatly enriching our understanding of this subject.
[토토사이트] 불법 먹튀 사이트를 차단하고 안전한 온라인 도박 환경을 조성하세요! 먹튀 사이트 차단 방법, 검증된 사이트 목록, 안전놀이터 추천 등을 제공합니다.