Canada publishes final Clean Fuel Regulations

By Erin Voegele | June 30, 2022

The Canadian government on June 29 published final Clean Fuel Regulations, which will require fuel producers and suppliers to meet increasingly stringent carbon reduction goals for gasoline and diesel.

The CFR sets a carbon intensity (CI) limit for gasoline at 91.5 grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) in 2023. The CI limit increases annually through 2030 and thereafter, when the limit is set at 81 gCO2e/MJ. For diesel, the limit starts at 89.5 gCO2e/MJ in 2023 and ramps up to 79 gCO2e/MJ in 2030 and thereafter.

Environment and Climate Change Canada estimates that approximately 2.2 billion liters (581.18 million gallons) of additional low-CI diesel and 700 million liters of additional ethanol will be needed in 2030 under the CFR, creating economic growth and jobs for Canadians across the country. Once fully implemented, the CFR is expected to help cut up to 26.6 million metric tons of greenhouse gas (GHG) pollution in 2030.

The government of Canada also announced it will invest $1.5 billion through its Clean Fuels Fund to build new or expand existing clean fuel production facilities.

Renewable Industries Canada welcomed release of the CFR, noting that the regulations mark a major milestone in the country’s ongoing efforts to decarbonize transportation and combat climate change sustainably. “Biofuels are an essential solution to climate change and smart climate policies that support innovation will pave the road to net zero biofuels,” the group said in a statement. “The CFR will be instrumental in sending a clear signal to investors that Canada is ready for more clean and more cost-effective low-carbon fuels, like ethanol and biomass-based diesel.”

The Renewable Fuels Association, Growth Energy and the U.S. Grains Council also issued a joint statement welcoming the CFR and calling the program a victory for Canadian consumers and low-carbon biofuels. “We applaud Canada for finalizing its Clean Fuel Regulations and leading the globe in putting a plan in place to slash greenhouse gas emissions from the transportation sector through higher blends of biofuels,” the organizations said. “The Clean Fuel Regulations set Canada on a path toward better air quality, energy security, and carbon mitigation, all supported by rural communities, by setting the achievable goals of reducing more than 20 million tons of greenhouse gas emissions through a move to 15 percent ethanol in all gasoline by 2030. The Clean Fuel Regulations stand as testimony to the powerful impact biofuels can and will have for Canada’s transportation future.”

A full copy of the CFR can be downloaded from the Government of Canada website.

Ontario to increase ethanol level in fuel

When you drive up to the gasoline pump in the next few years in Ontario, you’ll be filling up with a little more ethanol.

Canada’s most populous province announced late last week that it is mandating an increase in the ethanol content of gasoline from the current 10 per cent, to an eventual 15 per cent in ‘regular’ grade fuel.

It will be a gradual increase with 11 per cent by 2025, 13 per cent by 2028 and 15 per cent by 2030

A press release says the 15 per cent target is expected to reduce greenhouse gas emissions by one megatonne annually, or the “equivalent of taking 300,000 cars off the road every year”.

According to Syngenta Canada, a division of the multinational biotech and chemical company, 90% of the ethanol used in Ontario, about 1.2 billion litres, is produced in the province, That represents about 110 million bushels of corn or about 3 million metric tonnes of corn destined towards annual ethanol production in the province. That figure represents over a third of the province’s entire annual provincial corn harvest.


Critics of ethanol list lower fuel economy, debate about whether it provides more energy than it takes to produce it, concern about conversion of food crops to fuel crops, more green spaces converted to ethanol cropland, and runoff of fertilizer contributing to algae blooms in lakes and rivers.

In the press release however, Jeff Yurek, provincial Minister of the Environment, Conservation and Parks, says “This change will also help attract investment in ethanol production, create jobs in rural communities and assist the biofuel and agriculture sectors in their long-term economic recovery from COVID-19”.

Original Article:
Original Author: Marc Montgomery

USDA increases forecast for 2021-’22 corn use in ethanol

The USDA increased its forecast for 2021-’22 corn use in ethanol in its latest World Agricultural Supply and Demand Estimates report, released April 8. Ending stocks were unchanged and the season-average farm price was increased.

The USDA has lowered its forecast for feed and residual use by 25 million bushels to 5.625 billion based on indicated disappearance during the December-February quarter.

The forecast for corn use in ethanol is raised 25 million bushels to 5.375 billion bushels based on the most recent data from the agency’s Grain Crushings and Co-Products Production report and the pace of weekly ethanol production during March as indicated by U.S. Energy Information Administration data. Approximately 5.033 billion bushels of corn went to ethanol production in 2020-’21, up from 4.857 billion bushels in 2019-’20.

With offsetting use changes, ending stocks are unchanged at 1.44 billion bushels. The season-average farm price is raised 15 cents to $5.80 per bushel based on observed prices to date.

Foreign corn production is forecast higher with increases for Brazil, Indonesia, Pakistan and the EU. For Brazil, production is raised reflecting increased areas; yield expectations are essentially unchanged this month as much of the second crop will enter the critical phase of development during April. Indonesia corn production is higher as greater area more than offsets a slight reduction to yield. Corn production is raised for the EU, mostly reflecting increases for Germany, Romania and the Czech Republic.

Major global trade changes include lower forecast corn exports for Ukraine, Serbia, and Paraguay, with increases for Brazil, Canada, and India. Corn imports are lowered for China, Chile, and Bangladesh, but raised for Iran. Foreign corn ending stocks are higher, mostly reflecting increases for Ukraine, Serbia, the EU, and Indonesia that are partly offset by a reduction for Canada. Global corn ending stocks, at 305.5 million tons, are up 4.5 million from last month.

Original Article:
Original Author: Erin Voegele