Biofuels Prove Value for Canada’s Energy Security and Affordability as Use Grows, Emission Reductions Hit a Record High

Navius Research says clean fuel use rose 6% in 2025, avoiding a record 14.2 Mt of emissions; policy changes can lift domestic share above one-third nationally.

VANCOUVER, BC, CANADA, October 14, 2026 /EINPresswire.com/ -- Biofuel use in Canada expanded 6% in 2025, reducing average fuel prices across Canada by approximately 2.4 cents per litre, while creating a record 14.2 million tonnes of greenhouse gas (GHG) emissions reductions, according to the eleventh annual Navius Research Biofuels in Canada report, released today by Advanced Biofuels Canada (ABFC).

The Biofuels in Canada report is commissioned annually by Advanced Biofuels Canada with co-funding from the Canadian Canola Growers Association and independently authored by Navius Research. The report tracks renewable and low-carbon fuel consumption, carbon intensity, greenhouse gas reductions, consumer costs, trade flows, and the impacts of federal and provincial clean fuel policies across Canada.

Clean fuel consumption in 2025 follows the strong 10% growth in 2024, as federal and provincial fuel policies continued to increase demand for lower-carbon transportation fuels.

“Canada has secured its global stature as a strong and growing market for low carbon fuels, and biofuels are delivering record emissions reductions and lower prices,” said Fred Ghatala, President of Advanced Biofuels Canada Association. “With 2026 fuel price surges, Canadians should know that biofuels are protecting their wallets by contributing well over 6 billion litres of functional fuels that are critical to extending the global supply of liquid transportation fuels at this time. To ensure maximum benefits for Canadian jobs and the economy, the current review of major clean fuel policies must strengthen market opportunities for domestic fuels and feedstocks.”

The report’s findings show how clean fuel policies, domestic production, and diversified fuel supply strengthen Canada’s economy and energy security.

Key findings from the 2026 report include:

Clean fuel market expansion:

- Biodiesel and renewable diesel consumption grew significantly in 2025, with combined volumes increasing by 5% to almost 2.0 billion litres per year, on top of 10% growth in 2024.

- Ethanol blending grew by 4% in 2025 to just over 4.3 billion litres, on top of 6% growth in 2024.

- Renewable fuel content continued to exceed regulated minimum requirements. Ethanol grew to roughly 10% of Canada’s gasoline pool in 2025, and biomass-based diesel content exceeded 7% nationally.

Clean fuel cost competitiveness:

- Renewable fuel supply reduced wholesale fuel prices, on average, across the gasoline and diesel pool. Since the start of the CFR in 2023 until the end of 2025, the associated renewable fuel supply is calculated to have reduced prices by an average of 2.4 ¢/L relative to a scenario without renewable fuel.

- Ethanol blending reduced wholesale gasoline costs by approximately $1.1 billion in 2025 and by $14.6 billion cumulatively since 2010.

- Outdated volume-based fuel taxation on renewable fuel cost consumers approximately $450 million in additional fuel taxes in 2025. Since 2010, this additional tax burden is estimated at $5.7 billion. If fuel taxes were instead assessed on energy content, renewable fuel consumption since 2010 would have saved consumers approximately $3.7 billion.

Biofuels are delivering record emissions reductions:

Clean fuel use avoided an estimated 14.2 million tonnes of GHG emissions in 2025, a new annual high and double the emissions reductions achieved in 2021. The carbon intensity of biofuels themselves continued to decrease; ethanol used in Canada had an average carbon intensity approximately 60% below petroleum gasoline, while biomass-based diesel was approximately 86% below petroleum diesel.

British Columbia markets continue to demonstrate how the emissions performance of biofuels has improved over time. Between 2010 and 2025, the carbon intensity of ethanol consumed in the province declined by 81%, biodiesel by 82%, and renewable diesel by 48%.

For the first time, the annual report also quantifies sustainable aviation fuel (SAF) supply in Canada. The SAF blending rate in BC was nearly 4% in 2025, three years ahead of when British Columbia’s Low Carbon Fuel Standard will first require a 1% blending rate. Nationally, SAF blending in British Columbia means that about 1% of Canada’s jet fuel was renewable. The SAF supplied in 2025 had an estimated carbon intensity approximately 68% below conventional petroleum jet fuel, expanding the report’s assessment of low-carbon solutions for transportation sectors that are particularly difficult to electrify.

“Canada already has the policy framework, agricultural, forestry and other natural resources, infrastructure, innovation and technical expertise needed to build a highly competitive domestic clean fuels industry,” Ghatala added. “As governments focus on economic resilience, trade diversification and energy security, the renewal of these policies is the moment to turn existing domestic demand into Canadian investment, jobs, and stronger supply chains.”

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Colleen Lamothe
Advanced Biofuels Canada Association
+1 778-875-3259
clamothe@advancedbiofuels.ca
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