Low-Carbon Fuels
Low-carbon fuels play a crucial role in reducing emissions as they can be used in existing engines and infrastructure, offering an immediate, practical solution to lower carbon emissions. With advancements in technology, the efficiency of low-carbon fuels is steadily improving, making them a more viable option for decarbonizing the transportation fuel sector and addressing climate change today. Continued innovation and investment in these fuels are essential for bridging the gap until electric technologies become more widespread.
Canada has the potential to be a leader in the low-carbon fuel market, driving innovation and setting new standards for sustainability. By scaling up low-carbon fuel and other emission-reduction technology projects, Canada can enhance its energy security, support economic growth, and create jobs across the fuel value chain. This includes benefiting agriculture and forestry sectors that provide feedstock for low-carbon fuel production.
Expanding low-carbon fuel production and distribution will reduce Canada’s reliance on fuel imports and improve energy security. Maintaining and utilizing the current fuel infrastructure while diversifying the energy mix will ensure reliable, affordable, and efficient transportation fuels for both businesses and consumers, contributing to a more sustainable energy future.
Government policies and regulations, such as Canada’s Clean Fuel Regulations (CFR), play a critical role in accelerating the production and use of low-carbon fuels. These regulations set clear targets for reducing carbon intensity in transportation fuels, encouraging fuel producers to innovate and incorporate low-carbon alternatives like ethanol, renewable diesel, SAF and hydrogen.
Key Policy Principles
Click here for key policy development principles to stimulate investments in the production and use of low-carbon fuels
Types of low-carbon fuels
Ethanol
Over the past few decades, ethanol has played a crucial role in reducing greenhouse gas emissions by serving as a cleaner alternative to fossil fuels. Its use in transportation fuels has contributed to lowering carbon intensity, reducing air pollution, and supporting the shift towards more sustainable energy sources.
Sustainable Aviation Fuel (SAF)
Sustainable Aviation Fuel (SAF) is a low-carbon alternative to traditional jet fuel, made from renewable resources like waste oils, agricultural residues, and non-food crops. SAF significantly reduces greenhouse gas emissions and can be used in existing aircraft engines, helping to decarbonize the aviation industry and promote sustainable air travel.
Renewable diesel
Renewable diesel is a low-carbon fuel produced from renewable resources like plant oils, animal fats, and waste materials. It is chemically similar to petroleum diesel but emits fewer greenhouse gases. Compatible with existing diesel engines and infrastructure, renewable diesel plays a key role in reducing transportation emissions.
Hydrogen
Hydrogen is a versatile, clean fuel that can be used across multiple sectors, including transportation, industry, and energy production. Hydrogen releases zero emissions at the point of use, making it a key solution for reducing greenhouse gas emissions and supporting a sustainable energy transition especially when produced using low-carbon methods.