New U.S. Bill Could Boost Canadian Canola Exports for Biofuel Production

KCJ Media Group Ltd.

In May 2025, the U.S. Congress introduced a bill aimed at amending the 45Z Clean Fuel Production Tax Credit to include canola oil-based biodiesel as an eligible feedstock. This legislative move seeks to recognize canola oil's low carbon intensity, positioning it as a viable component in the U.S. renewable fuel sector.

The proposed amendment could open new market opportunities for Canadian canola producers, especially those in Alberta, by facilitating increased exports to the U.S. Industry stakeholders view this development as a significant step toward enhancing North American energy security and promoting sustainable agricultural practices. The bill's progression through Congress will be closely monitored by both Canadian and American agricultural communities, given its potential impact on cross-border trade and the biofuel industry. Central Alberta Online

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