Advanced Biofuels Canada report shows renewable fuel consumption growth mixed

In Canada, Navius Research has released the 2020 edition of the “Biofuels in Canada” report on behalf of Advanced Biofuels Canada. This report uses public data to catalog the volume of transportation biofuels consumed in each Canadian province while estimating the impact of biofuel consumption on greenhouse gas emissions and transportation energy costs.

Ethanol consumption has increased from roughly 1,700 million liters in 2010 to 3,034 million liters in 2018 (0.5% less than in 2017), accounting for 6.5% of the volume of blended gasoline fuel.

Renewable fuel consumption in the diesel pool was 711 million liters in 2018 (1.5% larger than in 2017), accounting for 2.5% of the volume of blended diesel fuel.

Annual avoided lifecycle greenhouse gas emissions resulting from biofuel consumption were 5.6 Mt/yr in 2018 (1% larger than in 2017). Average abatement costs from the consumers’ perspective is -C$322/tCO2e  in the ethanol pool and C$149/tCO2e  in the diesel pool.

On net, we estimate that biofuel consumption reduced fuel expenditures in Canada by 0.8% from 2010 through 2018, relative to a counterfactual scenario without biofuel consumption.

Because of differences in fuel energy density and fuel costs, consumers in Canada have paid more taxes as a result of biofuel blending and consumption, relative to a counterfactual scenario without biofuel consumption. These “surtaxes” have grown to a cumulative total of C$1.6 billion from 2010 through to the end of 2018.