Renewable Industries Canada is asking the Canadian government to give ethanol a fair shake after a “retooled” Clean Fuels Fund (CFF) made ethanol and e-methanol producers ineligible for funding.
In the September budget, the Liberals committed $776 million for a retooled CFF to drive production of renewable diesel, sustainable aviation fuel, and renewable natural gas, but ethanol was not mentioned. RICanada (formerly the Canadian Renewable Fuels Association) says this CFF ethanol ban would jeopardize Canadian biofuel producers and farmers while potentially favouring U.S. imports and incentives.
On RealAg Radio this week, RICanada past president Andrea Kent joined host Shaun Haney to discuss the situation. She says that despite ethanol being Canada’s most produced biofuel, National Resources Canada (NRC) proposed making ethanol ineligible for the fund, claiming “Canada can meet ethanol demand with American imports — and by extension — American corn.”
Kent, currently industry and government affairs vice president for Greenfield Global, says the RICanada is asking NRC “to make all low carbon fuel pathways eligible. It shouldn’t preclude anything off the hop.” She adds that e-methanol (for marine shipping) is also ineligible “despite being crucial for the future, offering new biofuel production and agricultural opportunities.”
RICanada believes the ethanol and e-methanol exclusions will limit new business opportunities for Canadian farmers and biofuel producers and discourage investment in renewable fuel production and clean technology in Canada.
Kent notes that unlike Canada, the U.S. is supporting its ethanol industry. “The U.S. Inflation Reduction Act gives American ethanol producers a tax credit. Additionally, the U.S. is considering changes to its Sustainable Aviation Fuel Tax Credit that might exclude non-American ingredients, which could affect Canadian suppliers.” Check out the interview below.
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