Clear gasoline fiscal measures will help $10-15 billion in new funding and scale back the price of clear fuels for Canadian shoppers
VANCOUVER November 2, 2023 — Superior Biofuels Canada (ABFC) launched as we speak its fiscal suggestions to draw $10-15 billion of recent clear gasoline capital investments to construct new Canadian clear gasoline manufacturing capability and infrastructure by 2030.
ABFC’s ‘Clear Fuels Technique’ report profiles fiscal measures that can guarantee that Canadian-based clear gasoline manufacturing stays aggressive within the international market and, particularly, place the sector to compete in opposition to US-based producers backed 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 reasonably priced, 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, equivalent to long-haul trucking, aviation, marine, and rail. These sectors are quickly adopting low-carbon-intensity fuels (LCIF), equivalent to renewable diesel (RD) and sustainable aviation gasoline (SAF). Whole Canadian LCIF capability is enough to satisfy about 75% of present market demand however, with out new capital funding, this may shrink to lower than 50% by 2030 and improve our reliance on imported clear fuels.”
Thomson famous, “Canada has an ample provide of sustainable clear gasoline feedstocks, equivalent to canola and soybean oil, animal fat, crop and forestry biomass residues, and wastes, to help home manufacturing capability growth to satisfy 2030 demand for LCIF. New clear gasoline refining capability is underneath building or approaching remaining 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; nonetheless, the fiscal measures will help the total vary of fresh gasoline feedstocks, applied sciences, and clear gasoline varieties, together with renewable methanol, renewable gasoline, and bio-based low-carbon hydrogen. Turner Mason & Firm supplied engineering companies 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 fuel (GHG) impacts associated to ABFC’s estimated LCIF capability build-out and manufacturing estimates that consequence from the proposed clear gasoline fiscal insurance policies. The outcomes are summarized within the desk beneath.
The Navius analysis estimated the price of increasing eligibility to the federal Clear Know-how Manufacturing Funding Tax Credit score to wash gasoline investments could be $1.55 – 2.88 billion over 2024-2030. Additional, implementing measures that will immediately deal with the US IRA subsidies that can 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 gasoline 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, when it comes to 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 gasoline capability, it’s time to safe our place within the clear gasoline race.”
Along with new insurance policies for clear gasoline builders and operators, the report additionally proposes measures that will immediately scale back the price of clear fuels for Canadian shoppers. Thomson continued, “Now we have lengthy advocated for the removing of the carbon tax on clear fuels. Navius Analysis’s new Biofuels in Canada 2023 report said that, ‘…[carbon taxes on low-carbon fuels alone] would have shoppers pay an extra $1.5 billion per 12 months in 2030.’ We’re additionally calling on federal and provincial governments to reform excise taxation of transportation fuels – the present system just isn’t maintaining with the tempo of change in transportation. Eliminating the carbon tax and pretty making use of transport gasoline taxes on all LCIF merchandise would considerably scale back gasoline prices for all Canadians.”
The ABFC Clear Fuels Technique report was developed to help the biofuels session mandated within the federal funds 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 non-public sector capital funding potential and recognized aggressive gaps, primarily between Canadian initiatives and US-based opponents. Discussions this fall moved to guage options aligned with these recognized in our report; general, we’re inspired by the progress. The Canadian clear fuels sector is seeking to the autumn financial assertion and funds 2024 to outline and implement new measures that help development – there isn’t any 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 experiences 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 international leaders in industrial manufacturing of those purposeful, scalable fuels, with over 36 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 belongings and operations in Canada.
