Canada: Biofuels Annual

Rising ethanol use and blending continued in 2025, supported by the carbon credit exchange and provincial policies. The same was true for renewable diesel and biodiesel in 2024 and expected in 2025. Fuel ethanol consumption in 2025 is forecast to be 52 percent higher than 2021 levels (pre-CFR); biodiesel and renewable diesel are forecast to be 20 percent and 275 percent higher, respectively. Canada's third, and largest, renewable diesel plant began operation in July 2025, bringing capacity up from 994 ML in 2024 to 2,380 ML. Renewable diesel exports to the United States began in June 2024. There is significant uncertainty for Canada's biofuel production and international trade given imminent changes in U.S. and Canadian federal biofuel policies, and due to provincial domestic content requirements introduced in 2025.