Farms and Fuels Alliance Calls on Government to Deliver on Clean Fuel Commitment for Canadian Ethanol This Summer

Canadian farmers and ethanol producers call on the Government to deliver on its Clean Fuel commitment and restore a level playing field for Canadian ethanol.

OTTAWA, Ontario--(BUSINESS WIRE)--Canada's Farms and Fuels Alliance (FFA) today called on the Government of Canada to follow through on Prime Minister Carney's September 5, 2025, commitment to amend the Clean Fuel Regulations (CFR) to protect Canada's domestic biofuels sector — and to deliver on that commitment this summer, with a credit multiplier for Canadian-produced ethanol.

Canada's ethanol industry has invested billions in world-class facilities, supports thousands of jobs in rural communities, and purchases approximately one in three bushels of Ontario corn. Yet today, Canadian producers are losing market share to heavily subsidized imports.

Ethanol is a renewable fuel made from field corn. Its affordability and widespread availability have made it a significant contributor to Canada's fuel supply. That growing Canadian demand, however, is increasingly being met by imports. Today, approximately 70 per cent of the ethanol blended into Canadian gasoline comes from outside our borders — up from less than 50 per cent just five years ago.

The competitive imbalance is being accelerated by U.S. policy. Through the 45Z Clean Fuel Production Credit, American ethanol producers receive federal support worth up to 36 cents per litre — a program now extended through 2029 under the One Big Beautiful Bill Act. That subsidized ethanol enters Canada and receives the same CFR credit treatment as domestic production.

The CFR was designed before a foreign subsidy of this magnitude existed. Calibrating it to reflect today's conditions is how Canada maintains and expands the domestic capacity to be a reliable continental energy producer. A minimum 1.4x CFR credit multiplier for ethanol does exactly that.

"Canada's ethanol producers have done everything asked of them," said Andrea Kent, Vice President, Policy and External Relations, Greenfield Global Inc. "We have brought forward sound technical evidence, worked constructively with government, and demonstrated the economic opportunity in front of us. The Government made a commitment to protect Canada's domestic biofuels sector. Now it is time to deliver a solution that actually closes the competitive gap for Canadian ethanol within Canada’s policy framework."

More than $1 billion in private, shovel-ready investment — including major ethanol projects in Ontario and Quebec — remains on hold while companies await a clear and bankable policy signal.

“This is not a request for new spending or a new program,” said Kevin Norton, CEO, Alco Energy Canada. “The Government has already made the commitment. What is needed now is a practical adjustment to ensure the Clean Fuel Regulations deliver that commitment for Canadian producers.”

"Ontario farmers are ready to help meet growing demand for low-carbon fuels," said Jeff Harrison, Chair, Grain Farmers of Ontario. "The demand is there, the investment is ready, and the feedstock is being grown here at home. We need a policy framework that allows Canadian ethanol producers and Canadian farmers to compete on a level playing field."

The Prime Minister has already made the commitment. The solution is clear: a minimum 1.4x credit multiplier for domestic ethanol must be included in the Canada Gazette Part I amendments this summer to ensure Canada’s existing clean fuels policy works as intended — creating the conditions for Canadian ethanol to compete, grow, and attract investment.

About the Farms and Fuels Alliance

The Farms and Fuels Alliance brings together Canadian corn farmers and domestic ethanol producers in support of a made-in-Canada biofuels sector. Together, our members purchase more than 158 million bushels of locally grown corn each year, support thousands of rural jobs across Ontario and Quebec, and have built a three-decade record of supplying reliable Canadian fuel.

farmsandfuelsalliance.com | @FarmsAndFuels