New Federal Biofuels Program Levels Playing Field for Canadian Producers and Farmers

VANCOUVER, CANADA, September 5, 2025 /EINPresswire.com/ -- Advanced Biofuels Canada Association (ABFC) welcomes today’s announcement by the government of Canada that introduces a per-litre production credit and proposes targeted changes to the Clean Fuel Regulations, providing tangible support for Canadian-produced clean fuels.

“Canada is at a critical crossroads,” said Fred Ghatala, President of ABFC. “The U.S. Inflation Reduction Act (IRA) has reshaped global energy markets and created a systemic imbalance, leaving Canadian producers at a severe competitive disadvantage, even in our own domestic marketplace. Today’s announcement is welcome. It gives our domestic biofuels sector the chance not only to compete, but to grow.

This new program will help restore competitiveness for domestic producers, enabling facilities to restart operations and expand capacity, and will shore up struggling feedstock markets. The clean fuels sector continues to prove it can deliver on government priorities. At full production, Canadian biorefineries contribute $19.8 billion to the Canadian economy. With the right fiscal and policy signals, Canada’s biofuels sector, already supporting over 30,000 jobs, can by 2030 expand production to generate $44.4 billion in economic output and sustain more than 60,000 jobs.

Biofuels support Canadian farmers by turning crops like canola into clean fuels to reinforce energy security, de-risk global trade headwinds, and drive clean energy investments. Biofuels connect rural fields to urban fuels, supporting Canadian farmers while building a sustainable economic and energy future for all Canadians.”

Since the July 2022 IRA announcement, ABFC has worked closely with the government and advocated for this much-needed program. ABFC will continue to provide data and analysis to support informed, evidence-based decision-making. Today’s announcement can be viewed on the Prime Minister’s website. ABFC will provide program updates on its website as details become available.

Advanced Biofuels Canada Association (ABFC) is the national industry voice for producers, distributors, and technology providers for advanced biofuels and renewable synthetic fuels. ABFC members produce a portfolio of liquid low-carbon fuels (including sustainable aviation fuel, or SAF), sustainable feedstocks, intermediary products, and produce/consume low carbon gaseous products, such as renewable natural gas (RNG) and low carbon hydrogen. Our members operate over 32 billion litres of low carbon fuel production capacity globally and are significant suppliers to renewable and low carbon fuel in Canada, and worldwide.

For more information on Advanced Biofuels Canada and our members, visit www.advancedbiofuels.ca.

For media inquiries, please contact:

Fred Ghatala
Advanced Biofuels Canada
fghatala@advancedbiofuels.ca

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