In December, U.S. Grains Council (USGC) Regional Ethanol Manager for the European Union, United Kingdom and Canada Stephanie Larson was in Calgary, Alberta, in Canada to meet with leading fuel refiners and blenders to discuss their biofuel integration plans and how U.S. producers and exporters can be of assistance.
“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,” Larson said. “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 U.S. ethanol producers alike.”
Canada remains the largest U.S. ethanol export destination market in both volume and value terms. During marketing year (MY) 2023/2024, volumes reached 655 million gallons, up 11% from MY 2022/2023.
In March, Canada announced it will 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.
While in Calgary, 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 U.S. industry about relevant updates, but it’s equally as important to build relationships with private sector entities,” Larson said. “Nationwide and provincial ethanol use is continuing to show strong growth in Canada.”
Heading into 2025, there is some uncertainty on both sides of the border. The United States will see leadership changes on Jan. 20 with the incoming administration, but Canada will also see changes this year.
On Jan. 6, Canadian Prime Minister Justin Trudeau announced he will be stepping down as the leader of his party, clearing the way for a new leader to run in the elections that will be called later this year.
“Regardless of any potential policy changes, the U.S.-Canada trade partnership will endure,” Larson said.
Canada has a longstanding history of ethanol trade with the U.S. as the most consistent ethanol export partner for the U.S. since 2010.
U.S. Grains Council (USGC) Regional Ethanol Manager for the European Union, United Kingdom and Canada, Stephanie Larson (rightmost), in Calgary, Canada, to meet with fuel refining and blending companies to learn about their current integration of biofuels and plans for expanded use in the future.