New report assesses Clear Gas Rules affect, reveals vital ramp up in adoption of low carbon fuels
VANCOUVER October 31, 2023 — Superior Biofuels Canada (ABFC) introduced the discharge of the eighth annual Navius Analysis Biofuels in Canada (BIC) report, accompanied by detailed and complete information on Canadian renewable and low-carbon gasoline markets.
The report’s highlights for 2022 (estimates), and the earlier twelve years (2010-2021, precise), embrace:
- General, biofuel consumption has decreased Canadians’ wholesale gasoline prices by $3.7 billion between 2010 and 2022.
- Over 2010-2022, biofuels have saved the everyday gasoline light-duty automobile and truck proprietor about 0.3% in annual gasoline prices, whereas the everyday medium- and heavy-duty diesel truck proprietor has seen prices enhance by 1% from biofuels use within the interval.
- Ethanol mixing grew in 2022 at a quicker tempo than any interval prior to now decade, persevering with an upward pattern in utilization from 6.7% in 2020, 6.9% in 2021, and reaching 7.6% in 2022.
- Biodiesel and HDRD blends in diesel fuels totaled 3.8% in 2022, up from 3.4% in 2020 and three.5% in 2021.
- Biofuel use in Alberta and Manitoba surged, with extra greenhouse fuel (GHG) emissions averted – 45% and 24%, respectively – than had been averted in 2021, in contrast with the Canadian common enhance in averted GHG emissions of 13%.
- Electrification contributed 13% of GHG reductions in transportation throughout Canada in 2022, up from 4% 5 years earlier (2018).
- The weighted common carbon depth of biofuels utilized in Canada has decreased 11% from 2018 to 2022.
- Volumetric taxation of biofuels and the improper software of carbon taxes on biofuels have generated surplus tax revenues for governments of $3.9 billion (2010-2022). Truthful taxation of biofuels would have decreased shopper gasoline prices by $423 million in 2022.
The report is commissioned yearly by Superior Biofuels Canada and independently authored by Navius Analysis, a number one power and surroundings quantitative market evaluation agency. It evaluates Canadian renewable and low carbon gasoline insurance policies and their affect on provincial gasoline consumption, GHG emissions discount, and shopper prices.
On this 12 months’s report, a number of key updates have been launched. A brand new methodology for calculating the carbon depth of co-processed fuels gives insights into their emissions impacts. The report sheds gentle on credit score era underneath British Columbia’s Low Carbon Gas Commonplace (LCFS) Half 3 Agreements program and gives a projection of the near-term federal Clear Gas Rules credit score/debit steadiness. The brand new information additionally contains an up to date tax value evaluation, together with E15 and B20/R80 biofuel blends.
“The report profiles a surge in biofuels use in Canada, resulting in expanded local weather advantages. Biofuels use in 2022 decreased greenhouse fuel emissions by over 7 Mt for the primary time. Whereas early credit score era underneath Canada’s new Clear Gas Rules impacted biofuels use within the final half of 2022, the information demonstrates that provincial gasoline rules proceed to offer an efficient market sign to decarbonize non-ZEV transport,” acknowledged ABFC President Ian Thomson. “Within the debate about how Canada will meet its local weather targets, superior biofuels are delivering outcomes at the moment and exhibiting quite a lot of room for progress.”
“New world-scale superior biofuel manufacturing services are already creating hundreds of well-paying jobs in each area throughout the nation. They’re additionally enhancing our power safety by lowering reliance on imported gasoline, diesel, and jet gasoline. These superior fuels – which add worth to the power, agriculture, forestry, and waste administration sectors – are suitable with current automobiles and make the most of current infrastructure for speedy adoption and cost-effective distribution.”
The annual report calculates the volumes of renewable and petroleum transportation fuels consumed in every Canadian province, and characterizes these by gasoline sort, feedstock, and carbon depth (CI). Clear fuels profiled embrace ethanol, biodiesel, and hydrogenation-derived renewable diesel (HDRD); fuels from bio-based feedstocks which might be co-processed with crude oil in a traditional refinery are additionally analyzed. Information on the affect of electrical automobiles on Canadian gasoline markets can also be included.
“The report highlights the dysfunction of federal and provincial carbon tax regimes. When very low carbon biofuels in BC are charged the next carbon tax than gasoline and diesel (power adjusted), that sends precisely the improper sign to gasoline customers. Navius estimates that by 2030, the tax penalty on biofuels would value Canadian gasoline customers $1.5 billion per 12 months, with completely no profit to local weather motion. There isn’t a technical impediment to correcting the carbon tax on biofuels; political will is required.”
“As a result of biofuels are typically much less energy-dense than petroleum fuels, customers are paying extra tax on each kilometer pushed utilizing renewable fuels, along with improper software of the carbon tax. Navius concludes: ‘With out these further tax prices, renewable gasoline consumption throughout the examine interval [2010-2021] would have saved customers about $3.5 billion quite than costing them $60 million’.”
This 12 months’s evaluation research the extent to which present renewable gasoline consumption would fulfill the necessities of the brand new Clear Gas Rules which got here into impact July 1, 2023, following early credit score era intervals from June 21, 2022, to June 30, 2023. Amongst enhancements to this version, the volumes and GHG affect of co-processed renewable fuels are included, with information primarily based on reporting from the British Columbia Low Carbon Gas Commonplace. Tax charges utilized in the price affect calculations now change by fiscal 12 months quite than the calendar 12 months, and the price advantage of ethanol has up to date the octane valuation.
ABFC additionally up to date the Clear Fuels Report Card, which profiles Canada’s provincial leaders and laggards, primarily based on key gasoline market metrics from the Navius BIC report. The ABFC report card highlights emissions reductions in transportation, emphasizing the significance of biofuels and non-fossil clear fuels in assembly Canada’s local weather targets. The visualization software permits gasoline customers to research the affect of poorly designed gasoline taxation programs on their sector’s clear gasoline selections. A broader set of information visualizations and insights from the newest BIC report are contained in ABFC’s Canadian Transportation Fuels Dashboard.
“As a result of biofuels are typically much less energy-dense than petroleum fuels, customers are paying extra tax on each kilometer pushed utilizing renewable fuels, along with improper software of the carbon tax. Navius concludes: ‘With out these further tax prices, renewable gasoline consumption throughout the examine interval [2010-2021] would have saved customers about $3.5 billion quite than costing them $60 million’.”
This 12 months’s evaluation research the extent to which present renewable gasoline consumption would fulfill the necessities of the brand new Clear Gas Rules which got here into impact July 1, 2023, following early credit score era intervals from June 21, 2022, to June 30, 2023. Amongst enhancements to this version, the volumes and GHG affect of co-processed renewable fuels are included, with information primarily based on reporting from the British Columbia Low Carbon Gas Commonplace. Tax charges utilized in the price affect calculations now change by fiscal 12 months quite than the calendar 12 months, and the cost-benefit of ethanol has up to date the octane valuation. The total BIC report and information tables can be found right here.
ABFC additionally up to date the Clear Fuels Report Card, which profiles Canada’s provincial leaders and laggards, primarily based on key gasoline market metrics from the Navius BIC report. A broader set of information visualizations and insights from the newest BIC report are contained in ABFC’s Canadian Transportation Fuels Dashboard.
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 within the business manufacturing of those practical, scalable fuels, with over 24 billion litres of put in annual capability worldwide. Our members embrace Canada’s main superior biofuels producers and expertise innovators that are actively creating new clear liquid fuels manufacturing and distribution property and operations in Canada.
