Superior Biofuels Canada releases coverage temporary and proposals to develop Canada’s biofuel sector.
Superior Biofuels Canada (ABFC) launched its fiscal suggestions to draw $10-15 billion of recent clear gas capital investments to construct new Canadian clear gas manufacturing capability and infrastructure by 2030.
ABFC’s ‘Clear Fuels Technique’ report profiles fiscal measures that can guarantee that Canadian-based clear gas manufacturing stays aggressive within the world market and, particularly, place the sector to compete towards US-based producers sponsored by the measures within the US Inflation Discount Act (IRA).
Ian Thomson, President, emphasised that:
Canada wants an entire local weather motion technique to make sure that the traditional transportation has entry to inexpensive, made-in-Canada clear fuels.
“Our suggestions complement insurance policies to transition to electrical and clear hydrogen mobility, with fiscal measures directed at non-ZEV transport in hard-to-decarbonize sectors, akin to long-haul trucking, aviation, marine, and rail.
These sectors are quickly adopting low-carbon-intensity fuels (LCIF), akin to renewable diesel (RD) and sustainable aviation gas (SAF). Complete Canadian LCIF capability is enough to satisfy about 75% of present market demand however, with out new capital funding, it will shrink to lower than 50% by 2030 and enhance our reliance on imported clear fuels.”
Thomson famous, “Canada has an considerable provide of sustainable clear gas feedstocks, akin to canola and soybean oil, animal fat, crop and forestry biomass residues, and wastes, to help home manufacturing capability enlargement to satisfy 2030 demand for LCIF. New clear gas refining capability is underneath building or approaching closing funding choices; manufacturing in Canada is poised to double or triple within the subsequent 5 years.”
The ABFC evaluation primarily focuses on increasing the manufacturing and use of RD and SAF; nevertheless, the fiscal measures will help the complete vary of unpolluted gas feedstocks, applied sciences, and clear gas sorts, together with renewable methanol, renewable gasoline, and bio-based low-carbon hydrogen. Turner Mason & Firm supplied engineering providers to help the detailed modelling of RD and SAF manufacturing services to investigate the feasibility of Canadian capital investments throughout a variety of fiscal measures.
Navius Analysis carried out an impartial evaluation of the financial and greenhouse gasoline (GHG) impacts associated to ABFC’s estimated LCIF capability build-out and manufacturing estimates that end result from the proposed clear gas fiscal insurance policies. The outcomes are summarized within the desk under.
The Navius analysis estimated the price of increasing eligibility to the federal Clear Expertise Manufacturing Funding Tax Credit score to wash gas investments can be $1.55 – 2.88 billion over 2024-2030. Additional, implementing measures that may straight tackle the US IRA subsidies that will likely be paid to US-based biofuel producers would require an estimated $4.77 – 6.46 billion over 2025-2030.
Thomson mirrored on the Navius modelling outcomes, “Primarily, with $8-10 billion in targeted fiscal insurance policies, Canada’s clear gas sector will greater than double present capability, add 20,000 clear power jobs, and return $5 billion yearly in financial exercise. These are sensible investments with very robust payback – they transition our power, agriculture, forestry, and clear expertise sectors to be leaders within the low carbon financial system of tomorrow.
And, by way of local weather motion, these insurance policies make sure that Canada will meet its 2030 and 2050 commitments with made-in-Canada clear fuels. Canada must catch up: the US, EU, and Asian markets are actively constructing out new clear gas capability, it’s time to safe our place within the clear gas race.”
Along with new insurance policies for clear gas builders and operators, the report additionally proposes measures that may straight scale back the price of clear fuels for Canadian customers. Thomson continued, “We have now lengthy advocated for the removing of the carbon tax on clear fuels. Navius Analysis’s new Biofuels in Canada 2023 report acknowledged that, ‘…[carbon taxes on low-carbon fuels alone] would have customers pay a further $1.5 billion per yr in 2030.’”
“We’re additionally calling on federal and provincial governments to reform excise taxation of transportation fuels – the present system shouldn’t be maintaining with the tempo of change in transportation. Eliminating the carbon tax and pretty making use of transport gas taxes on all LCIF merchandise would considerably scale back gas prices for all Canadians.”
The ABFC Clear Fuels Technique report was developed to help the biofuels session mandated within the federal price range in March 2023. Thomson famous, “Pure Sources Canada and Finance Canada led an efficient and targeted overview of the biofuels sector over the spring and summer season. The session affirmed the personal sector capital funding potential and recognized aggressive gaps, primarily between Canadian initiatives and US-based opponents.
Discussions this fall moved to judge alternate options aligned with these recognized in our report; total, we’re inspired by the progress. The Canadian clear fuels sector is seeking to the autumn financial assertion and price range 2024 to outline and implement new measures that help progress – there is no such thing as a room for delay.
Professional-Forma Low-Carbon-Depth Gasoline (LCIF) Manufacturing Capability in Canada to 2030 (ABFC – Excessive Case)
The ABFC Clear Fuels Technique report and companion reviews can be found right here.
Superior Biofuels Canada/ Biocarburants avancés Canada is the nationwide voice for producers, distributors, and expertise builders of superior biofuels and renewable artificial fuels. Our members are world leaders in business manufacturing of those useful, scalable fuels, with over 36 billion litres of put in annual capability worldwide.
Our members embody Canada’s main superior biofuels producers and expertise innovators that are actively growing new clear liquid fuels manufacturing and distribution belongings and operations in Canada.
READ the newest information shaping the biofuels market at Biofuels Central
Superior Biofuels Canada releases coverage temporary and proposals to develop Canada’s biofuel sector, VANCOUVER, November 2, 2023
