Renewable Fuels

“Renewable fuels” encapsulate a range of products, from ethanol and biodiesel, to next-generation bio-based fuels.  Renewable fuels can be blended into traditional petroleum-based fuels.  Their most common use is in internal combustion engines, burning gasoline or diesel, at low blend levels (e.g. up to 10% for ethanol and 5% for biodiesel).  

Use of renewable fuels can significantly reduce emissions of greenhouse gases.  It can also assist Canadian farmers and rural communities and help secure Canada's place in the growing bio-economy.

The Government of Canada intends to develop and implement a federal regulation requiring renewable fuels.  Starting in 2010, the renewable fuels requirement would be 5% of a company’s total annual production plus imports of gasoline for use in Canada. 

In addition, the Government intends to put in place an additional requirement for an average 2% renewable fuel content in diesel fuel and light fuel oil, upon successful demonstration of biodiesel use under the range of Canadian conditions. This would not be in place for 2010, but is intended to come into effect by no later than 2012.   

The federal regulation will ensure that over 2.6 billion litres of renewable fuels are used in Canada by 2012.  This will mean a reduction of about 4 million tones of greenhouse gases each and every year – the equivalent of taking about one million cars off the road.  Effects of renewable fuels on other vehicle emissions are mixed – some pollutants increase, others decrease.