In late September, U.S. Grains Council Regional Ethanol Manager for the European Union, United Kingdom and Canada Stephanie Larson traveled to Ottawa, Ontario and Quebec City, Quebec to meet with government officials and discuss how the U.S. industry can further support Canada’s ongoing transition to higher ethanol blending rates.
“Canada is the top export market for U.S. ethanol, purchasing 590 million gallons during the 2022/2023 marketing year (MY) and already surpassing that figure during the first 11 months of MY 2023/2024 (598 million gallons) as U.S. producers benefit from a near 100 percent market share of ethanol imports in Canada. And there is still room to grow as the country continues its commitment to reduce carbon emissions,” Larson said.
While there is a nationwide mandate to blend gasoline with five percent ethanol (E5) in Canada, many provinces voluntarily set higher blend rates within their jurisdictions. Ontario and Quebec will both require E11 and E12 blends, respectively, by next year and the Canadian government recently announced plans to develop sustainable aviation fuel (SAF) facilities, creating significant additional demand for U.S. producers to meet.
Larson was joined by Helena Jette, director of market development and biofuels for the Indiana Corn Growers Association, Indiana Corn Marketing Council and Indiana Soybean Alliance, and Christopher Malone, vice president of market development for Indigo Ag.
The first day of the program included meetings with staff from Environment and Climate Change Canada and Natural Resources Canada, two of the governmental bodies responsible for overseeing the country’s goals and regulations toward fighting the climate change crisis. While in Ottawa, the team also met with representatives from Agriculture and Agri-Food Canada.
The group concluded its meeting itinerary in Quebec City with advisors from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks and the Ministry of Economy, Innovation and Energy.
“Canada has the potential to become the first billion-gallon market for U.S. ethanol as the country continues to develop progressive policies in the transportation sector, and maintaining connections with key Canadian policymakers and stakeholders through these meetings will be crucial to maintaining the privileged position enjoyed by U.S. ethanol in the Canadian market,” Larson said.
Learn more about the Council’s work in Canada here.
