Farms and Fuels Alliance Calls for Overdue Clean Fuel Regulation Amendments for Canadian-Made Ethanol by Year-End

Alliance calls for minimum 1.4x credit multiplier for Canadian-made ethanol as U.S. imports capture more of Canada’s growing ethanol market.

OTTAWA, Ontario--(BUSINESS WIRE)--Canada’s Farms and Fuels Alliance (FFA) is calling on the federal government to deliver on promised amendments to the Clean Fuel Regulations (CFR), including announcing and finalizing a minimum 1.4x credit multiplier for Canadian-made ethanol by the end of 2026.

In a letter to the Prime Minister, the FFA joins Renewable Industries Canada in calling for targeted amendments to the CFR that would address a competitiveness gap the government identified more than a year ago. Canada’s ethanol market is growing, but more of that growth is going to imports instead of Canadian-made ethanol. The government’s promised fix has still not been published.

The FFA and Renewable Industries Canada are calling for a minimum 1.4x credit multiplier for Canadian-made ethanol under the CFR. The measure would help address a growing competitive imbalance: U.S. ethanol entering Canada benefits from meaningful production support through the U.S. 45Z Clean Fuel Production Credit while competing on par with Canadian ethanol in Canada’s own market.

Last month, the United States announced Canada is on track to become a billion-gallon (4 billion-litre) ethanol export market. Without a timely and sufficient Canadian policy response, growing demand created by Canadian policy will increasingly support production, agricultural demand and investment outside Canada.

“A minimum 1.4x credit multiplier for ethanol made in Canada is a practical, targeted response,” said Andrea Kent, Vice President, Policy and External Relations, Greenfield Global Inc. “It recognizes the changed North American competitive environment and gives Canadian ethanol a fair opportunity to compete for market share created by Canada’s own regulatory framework.”

“For farmers, the stakes are significant,” said Jeff Harrison, Chair, Grain Farmers of Ontario. “Ontario ethanol production accounts for one in three bushels of corn grown in the province. For consumers, ethanol is also delivering value: in 2024, ethanol blending reduced Canadian wholesale gasoline costs by an estimated 7.4 cents per litre.”

“The ask is straightforward, and a full correction is overdue,” said Kevin Norton, CEO, Alco Energy Canada. “Deliver and finalize a minimum 1.4x multiplier for Canadian-made ethanol by the end of 2026.”

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