Demand for Biofuels Sparks Canadian Boom. But Will U.S. Subsidies Pull Investment South?

The biofuel industry in Canada is currently witnessing substantial investment and growth, primarily driven by the rising global demand for biofuels and the implementation of Canada’s Clean Fuel Regulations. However, this upward trajectory could face challenges due to the U.S. Inflation Reduction Act, which provides subsidies to American producers of clean transportation fuels, including those targeted for export. Furthermore, many fuel companies could easily build projects in Canada or the U.S., but will choose the option that makes the most economic sense.

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