Ethanol imports from the United States are double dipping in subsidy pools, putting Canadian ethanol at a disadvantage.
Andrea Kent, vice-president of Greenfields Global, said that means Canada’s ethanol policy needs an immediate fix.
That could come quickly because the federal government said last September that it would be making a targeted amendment.
Kent said there are $1 billion worth of projects in Ontario and Quebec ready to go as soon as the amendment is enacted.
The ethanol industry wants a policy similar to the diesel production incentives of $372 million announced in September.
The U.S, ethanol-industry double dipping is done by capturing a subsidy of 30 cents or more per litre from the Clean Fuel Production Credit program, then takes advantage of a Canadian credit program.
The targeted amendment would increase the credit on Canadian-produced ethanol to match the U.S. credits.
But Shaun Haney, who owns RealAgriculture, said the Canadian government will need to be careful to avoid upsetting United States President Donald Trump during the current review of the North American free trade deal.
The U.S. shipped 792 million gallons of ethanol to Canada last year.
