U.S. Grains Council (USGC) representatives, including Isabelle Ausdal, the Regional Ethanol Manager for the European Union, United Kingdom, and Canada, along with Chris Bliley, Senior Vice President of Regulatory Affairs at Growth Energy, recently visited Ottawa, Canada. Their mission was to advocate for increased ethanol blending in light of Canada's new Clean Fuel Regulations (CFR).
The visit centered around discussions on E10 and E15 ethanol blends, addressing the requirements of the CFR, the U.S. Inflation Reduction Act implementation, as well as regulatory and market trends related to enhanced ethanol blending. Although Canada currently has a national five-percent ethanol blend mandate, actual blending rates are closer to 10 percent, driven by provincial mandates and cost savings.
Ausdal noted the USGC's involvement in the original CFR discussions over six years ago and celebrated the full implementation of these regulations. This development strengthens the collaboration between U.S. and Canadian biofuel stakeholders and sets the stage for future training workshops and partnerships in ethanol blending.
In the 2022/23 marketing year, Canada was the largest market for U.S. ethanol, importing 604 million gallons (worth $1.7 billion). The CFR, which aims to reduce the carbon intensity of liquid transportation fuels, was fully implemented in July 2023. It is expected to boost ethanol usage in Canada by an additional 185 million gallons by 2030.
Bliley remarked on Canada’s role as a vital trading partner and its commitment to low-carbon initiatives, including bioethanol, as part of the CFR and provincial blending requirements.
A significant development in the ethanol trade came when Environment and Climate Change Canada (ECCC) approved the U.S. application for legislative recognition in November 2023. This approval ensures that U.S. feedstock, biodiesel, and ethanol exports to Canada comply with the land use and biodiversity criteria of the CFR.
Looking ahead, the USGC will continue focusing on federal-level regulations and supporting increased ethanol use in Canadian provinces. With six out of 10 provinces already having ethanol blending mandates, there is potential for further expansion and stronger policies to address fuel prices and emission reduction goals.
For more information on the USGC’s initiatives in Canada, interested parties can click here.
