Canada: Biofuels Annual

  |   Attaché Report (GAIN)   |   CA2023-0030

Canada’s Clean Fuel Regulation (CFR) became law on July 6, 2022. It aims to reduce the carbon intensity of liquid transportation fuels and has the potential to increase the use of low carbon-intensity diesel by an additional 2.2 billion liters and the use of ethanol by an additional 700 million liters by 2030 under the CFR, according to the federal government. Canadian fuel ethanol consumption increased an estimated 20 percent in 2022, year-over-year, to 3.4 billion liters. Canadian imports of U.S. fuel ethanol increased 40 percent to 1.76 billion liters. In 2023, the CFR is expected to support an upward trend in the average nationwide blend level and growth in U.S ethanol imports. Effective January 1, 2023, Quebec requires ten percent renewable content in gasoline and 15 percent in diesel. Canada’s first renewable diesel facility, owned by Tidewater Midstream, began commercial operation in June 2023.

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