Trade mission to Canada strengthens industry-government ties


By US Grains Council | June 30, 2022

Earlier this month, the US Grains Council’s director of global ethanol export development, Mackenzie Boubin, director of global ethanol policy and economics, Isabelle Ausdal, as well as Mike Lorenz, vice -Senior President of Market Development at Growth Energy, led a trade mission to Ottawa, Canada. , to encourage the continued development of ethanol policies at the national and provincial levels to immediately decarbonize transportation and help achieve the country’s climate ambitions.

Following the mission, the Council continues to establish links with the Canadian market and maintain close relationships with Canadian industry and individual policy makers. The U.S. ethanol industry has submitted comments on the draft Canadian Fuel Standard (CFS) and Quebec E15 regulations and is in contact with the Canadian government and the U.S. Department’s Foreign Agricultural Service of Agriculture (USDA’s FAS) in Canada to advocate for the fair use and treatment of US ethanol under the new regulations.

“Canada has a strong domestic ethanol industry and a long history of ethanol trade with the United States. The fight to reduce emissions is a top priority for both countries, and a range of options are needed. Both parties understand that decarbonizing the transportation sector requires a clean fuel mix with all available solutions considered,” Ausdal said.

As a result of the Council’s efforts, the Canadian government announced that carbon capture and sequestration (CCUS) would be considered in reducing the carbon intensity (CI) of U.S. biofuels, and the government committed with US industry on the implications of the new Land Use and Biodiversity Criteria (LUB). This direct cooperation between the United States and Canada will improve the free trade of biofuels.

While in Ottawa, the Council joined representatives from Renewable Industries Canada (RICanada) to demonstrate alignment with the increased use and adoption of ethanol. Canada has been the United States’ most consistent ethanol export partner since 2010, averaging about 330 million gallons per year. Last marketing year, exports totaled nearly 350 million gallons worth $784 million.

Since 2010, ethanol has played a key role in Canadian biofuel policies and the current national ethanol blending rate is 5%. To increase this average, Canada is developing a CFS to be implemented in 2023 to increase the biofuel blend and reduce the overall fuel pool CI. The final rules of the CFS should now be published at the end of July 2022.

While the APF was being developed, provincial mandates were the main driver of demand for biofuels. Quebec, Ontario, Saskatchewan and British Columbia have adopted or are in the process of adopting policies requiring the use of low carbon fuels, including minimum blending standards for ethanol.

“Canada’s CSA is a strong policy to provide a demand signal for biofuels. Combined with ambitious provincial greenhouse gas reduction targets, this is an excellent case study of complementary policies working together to successfully increase the national ethanol blend,” said Ausdal.


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