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 Renewable Fuels Regulations, published on September 1, 2010 in the Canada Gazette, Part II, require fuel producers and importers to have an average renewable content of at least 5% based on the volume of gasoline that they produce or import commencing December 15, 2010. The Regulations include provisions that govern the creation of compliance units, allowing trading of these units among participants and also require recordkeeping and reporting to ensure compliance.

The Regulations require producers and importers of diesel fuel and heating distillate oil to have an average annual renewable fuel content equal to at least 2% of the volume of distillates that they produce and import. The Regulations Amending the Renewable Fuels Regulations set a coming-into-force date for this requirement of July 1, 2011.

These Regulations are one pillar of the Government’s broader Renewable Fuels Strategy.The Strategy’s two regulatory requirements combined with provincial regulations will ensure a total volume of renewable fuel that will reduce annual greenhouse gas emissions by up to about an estimated four megatonnes in by 2012 – about the equivalent of taking one million vehicles off the road.

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