Canada's proposed new biofuels rules only a first step, industry says
XLE•Canadian biofuel industry groups said proposed rules to increase credits for domestic production fall short of US support and are unlikely to spur investment. The proposal includes multipliers of 1.3 for ethanol, 1.4 for biodiesel and 1.5 for renewable diesel, and faces a 75-day review period.
1. Industry seeks stronger support
Canada's proposed rules would award more credits for biofuels produced in the country, replacing a system that gave the same credits for domestic and foreign-produced fuels. Ethanol producers sought a 1.4 multiplier, rather than the proposed 1.3; a Renewable Industries Canada board member said the proposal provides about one-third of the support received by US ethanol producers.
2. Canola demand seen unchanged
The Canadian Oilseed Processors Association said the proposed 1.4 biodiesel multiplier falls short of US support and would leave canola demand broadly unchanged. The proposal would allow feedstocks from Canada, the US and Mexico, a decision welcomed by the US Renewable Fuels Association. Renewable diesel would receive a 1.5 multiplier. Imperial Oil's CEO said the company was not uncomfortable with the direction of the rules; a planned Saskatchewan renewable diesel plant remains on hold due to regulatory concerns.
