U.S. Grains Council (USGC) Regional Ethanol Manager Stephanie Larson recently visited Calgary, Alberta, to meet with leading Canadian fuel refiners and blenders, discussing their biofuel integration plans and potential support from U.S. producers and exporters.
Canada, the largest export destination for U.S. ethanol, has seen a significant increase in demand. During the 2023/2024 marketing year, U.S. ethanol exports to Canada reached 655 million gallons, an 11 percent increase from the previous year.
Larson highlighted Canada's commitment to reducing greenhouse gas emissions through ethanol blending. While the national mandate requires a 5 percent ethanol blend in gasoline (E5), several provinces have higher requirements. Ontario, for instance, plans to increase its mandate to 11 percent by 2025, with a goal of reaching E15 by 2030.
"The Canadian government recognizes ethanol's ability to provide a healthier atmosphere at a lower cost for consumers," Larson stated. "That's a win for Canadian drivers and U.S. ethanol producers alike."
Canada's Clean Fuel Fund, introduced in 2021, has committed over $1 billion over five years to develop new or expand existing clean fuel production facilities. In March, the country announced an additional $11 million investment in renewable fuels projects, including cellulosic ethanol.
During her visit, Larson met with major industry players to understand market dynamics in Alberta and how companies and consumers are adapting to the increased use of biofuels in transportation.
"It's important to build relationships with private sector entities to foster their loyalty to U.S. ethanol," Larson explained. She emphasized that while the USGC regularly meets with Canadian government officials, engaging with the private sector is equally crucial.
The growing ethanol use across Canada, driven by both national and provincial mandates, signals strong continued demand for U.S. ethanol producers. As Canada pushes forward with its clean energy goals, the partnership between U.S. ethanol producers and Canadian fuel industry appears set to strengthen further.
