Parkland Corporation successfully produced Canada’s first batch of sustainable aviation fuel (SAF) at its Burnaby Refinery, marking a significant step forward for the country’s renewable fuels industry. Meanwhile, the Canadian biofuels sector faces challenges from the U.S. 45Z Clean Fuel Production Tax Credit, which benefits U.S. producers and could impact Canadian competitiveness.
Despite trade pressures, domestic production is growing. Ethanol consumption in Canada rose by 13% and biomass-based diesel by 68% between 2022 and 2023. However, experts note that Canada’s biofuels capacity, especially for gasoline pool demands, remains limited, underscoring the need for policy support.
B.C. leads with a new SAF mandate—the first in North America—requiring a 2% carbon intensity reduction for aviation fuel in 2026, rising to 10% by 2030.
For Canada to become a global leader in low-carbon fuels, experts emphasize the need for clear, stable, and technology-neutral policies that prioritize carbon intensity.