This week, 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 five percent 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 percent 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.
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 to foster their loyalty to U.S. ethanol as well,” Larson said.
“Nationwide and provincial ethanol use is continuing to show strong growth in Canada and U.S. producers can count on strong demand from their neighbors to the North.”
Learn more about the Council’s work in Canada here.
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.