Canada exports entire biodiesel production to get US tax credits

In Canada, the country’s entire biodiesel production during 2013—around 300 million liters—was exported to the US while its entire demand to supply the 2% blending mandate—about 520 million liters—was imported. The trade flow is compensated by the $1 per gallon tax credit offered in the US, something which environmental groups say negates the environmental benefits of using biofuel.

Category: Fuels