Canada boosts biofuel industry with multi-billion dollar support package

Canada’s biofuel industry is poised for a significant boost following the federal government’s announcement of a multi-billion dollar financial support package. While industry stakeholders welcome the move, concerns linger about the sector’s ability to compete with substantial subsidies offered south of the border and the growing reliance on US imports to meet clean fuel regulations.

The federal commitment includes $1.27 billion earmarked for the construction of new biofuel facilities, facilitated through funding from the Canada Infrastructure Bank and a modification to the Clean Fuels Fund. Additionally, the recently unveiled federal budget introduced a biofuel production fund, potentially worth up to $500 million annually, resembling a production tax credit aimed at subsidizing ongoing operations.