WASHINGTON, DC, US — Staff from the US Grains Council (USGC) met with leading fuel refiners and blenders in Canada recently to discuss biofuel integration plans and how US producers and exporters can help.
“Canada has a national blending mandate of 5% ethanol in gasoline (E5) but several provinces require higher rates, including Ontario, whose provincial mandate will rise to 11% in 2025, as it continues toward its goal of reaching E15 by 2030,” said Stephanie Larson, USGC regional ethanol manager for the European Union, United Kingdom and Canada. “The Canadian government is committed to lowering the country’s greenhouse gas emissions and recognizes ethanol’s ability to provide a heathier atmosphere at a lower cost for consumers, and that’s a win for Canadian drivers and US ethanol producers alike.”
Canada remains the largest US ethanol export destination market in both volume and value terms. During 2023-24, volumes reached 655 million gallons, up 11% from 2022-23.
In March, Canada announced it would invest more than $11 million toward renewable fuels projects including hydrogen, renewable diesel and natural gas, cellulosic ethanol and synthetic fuels. The measure is part of the country’s Clean Fuel Fund, introduced in 2021, that committed more than $1 billion over five years to develop new or expand existing clean fuel production facilities.
Larson met with several of the major industry players to learn about market dynamics in Alberta and how the companies and consumers are adapting to biofuels’ increased prevalence in the transportation sector.
“The Council often meets with Canadian government officials to hear about the latest ethanol policy developments and informs the US industry about relevant updates, but it’s equally as important to build relationships with private sector entities to foster their loyalty to US ethanol as well,” Larson said. “Nationwide and provincial ethanol use is continuing to show strong growth in Canada and US producers can count on strong demand from their neighbors to the north.”
