Biofuels
Fuelling
A sustainable future
As global demand for biofuels intensifies, Canada is emerging as a destination for biofuel and renewable natural gas (RNG) projects. Driven in part by sustainable aviation fuel (SAF) mandates, Canada has a target of 1 billion litres of SAF use by 2030 and feedstock to support 7 to 10 billion liters annually. Canada offers investors first-mover advantage in a supply-constrained market. Canada’s established agricultural and forestry sectors ensure a reliable supply of biomass and crop-based inputs. RNG projects benefit from Canada’s organic waste sources – from municipal household waste to industrial byproducts.
Global companies with bold ambitions get access to deep expertise in low-carbon energy supported by research institutions and government policies that drive clean fuel innovation. Canada’s expansive fuel infrastructure includes pipelines, transportation networks and export-ready facilities.
Discover Canada’s strengths in biofuels.
Canadian leadership in biofuels
Canada’s biofuels advantage
Canada has the potential to lead the world in biofuels – and global renewable energy investors are taking note. With vast reserves of sustainable biomass sourced from its agricultural and forestry industries, Canada offers a scalable foundation for biofuel production.
Biofuels are derived from biomass – organic material from plants and other organisms – and converted into liquid fuels. The two most common types, ethanol and biodiesel, produce 80% to 117% fewer emissions than traditional fossil diesel, making them a powerful tool in the global transition to low-carbon energy. Canadian innovators are at the forefront of developing and commercializing a new generation of biofuels, positioning Canada as a reliable supplier and strategic partner.
Renewable natural gas
Canada is rapidly emerging as a leader in RNG thanks to its abundant feedstock and growing network of commercial scale projects. Also known as biomethane, RNG is produced using organic waste materials that are rich in carbon. The biogas is upgraded and used for electricity generation, vehicle fuel and industrial systems.
Global companies with bold ambitions benefit from a supportive regulatory environment and government incentives to fuel growth.
Sustainable aviation fuel
In the aerospace sector, companies are producing renewable diesel and sustainable aviation fuel (SAF), both critical to reducing greenhouse gas emissions and making transportation cleaner. SAF is made from renewable feedstocks widely available in Canada – forest and agricultural products, industrial fats, oils and grease, municipal solid wastes and carbon dioxide – and then mixed with traditional fuel.
The European Union requires that at least 2% of the fuel used at EU airports be SAF. This mandated amount will increase to 6% in 2030, 20% by 2035 and 70% by 2050 – and apply to all flights originating in the EU.
Canada is well-positioned to meet this growing global demand.
Canada investment highlight
Nova Sustainable Fuels chooses Nova Scotia for sustainable aviation fuel project
Nova Sustainable Fuels is building one of eastern Canada’s largest energy projects. The company, backed by Octopus Energy Generation, is developing a renewable energy park that converts renewable energy into sustainable aviation fuel (SAF). Energy sources include the company’s solar and wind farms, along with the province’s sustainable biomass and water resources.
In its first phase, the Goldboro, Nova Scotia project will produce up to 150,000 tonnes of SAF per year, offsetting the emissions of several hundred thousand vehicles each year.
Fast-tracked approvals and incentives to support your success
Canada’s Major Projects Office now offers financing for energy projects, together with faster project reviews and simpler regulatory processes. Approvals are fast-tracked to a maximum of 2 years, making it easier to structure deals and access capital.
Canada offers government programs and incentives to fuel growth in the biofuels industry:
Advanced Clean Energy program: Accelerates the development of clean, renewable fuels and energy storage solutions. Provides access to expertise and facilities at the National Research Council.
Canada Infrastructure Bank: Invests in revenue-generating infrastructure projects that benefit Canadians. The bank has set aside $500 million for biofuel production projects.
Clean Economy Investment Tax Credits: Provides tax credits, together with technical and engineering support, for clean technology and manufacturing projects.
Canada Growth Fund: Invests in low-carbon projects, technologies and businesses, including biofuels.
Clean Fuels Fund: De-risks capital investments to build new or expand existing clean fuel production facilities, including facility conversions.
Strategic Response Fund: Supports large-scale projects through funding for innovation, technology development and capital investments that modernize operations and expand industrial capacity.
Why choose Canada
Expertise in biofuels and renewable natural gas
Reliable supply of feedstocks to produce bioethanol, biodiesel and SAF
Established fuel infrastructure and supply chains
Stable, business-friendly environment
Lowest marginal effective tax rate on new business investment in the G7
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