The biofuels sector offers significant potential for creating local employment and helping to diversify the national energy mix. Biofuels are low-carbon fuels produced from organic materials (or biomass) such as crops, forest and agricultural residues, animal waste, and municipal organic wastes. Biomass can then be converted into solid, liquid, or gaseous forms to produce heat, electricity, or transportation fuels.
Biofuels are especially important for reducing emissions in hard-to-decarbonize sectors such as aviation, marine, and transport. With abundant biomass resources, Canada has strong opportunities for job growth in biofuels, particularly in rural and Indigenous communities.
Current Actions
- The Clean Fuels Fund (NRCan) provides capital funding to support building new clean fuel production facilities, or to retrofit or expand existing ones, and supports various feasibility studies that expand Canada’s capacity to produce clean fuels.
- The Clean Fuel Regulations (ECCC) reduce Greenhouse Gas emissions by mandating annual reductions in the lifecycle carbon intensity of gasoline and diesel produced and used in Canada. The reductions gradually increase over time and drive Canadian demand for clean fuels, such as biofuels. On September 5, 2025, the Government of Canada announced its intent to make targeted amendments to the CFR to support Canada’s low-carbon fuel sector, while maintaining the Regulations’ primary focus on lowering emissions and the transition to a lower-carbon economy. In December 2025, Canada published a discussion paper to invite views and information to inform the draft targeted amendments.
- The Biofuel Production Incentive (NRCan) announced on September 5, 2025 will provide a two-year per-litre production incentive to support the stability and resiliency of domestic producers of biodiesel and renewable diesel starting in January 2026.
- The Agricultural Clean Technology Program (AAFC) aims to create an enabling environment for the development and adoption of clean technology that will help drive the changes required to achieve a low-carbon economy and promote sustainable growth in Canada's agriculture and agri-food sector.
- Collaboration with the provinces and territories through a FPT working group to identify measures that advance the long-term competitiveness, growth, and resiliency of Canada’s biofuels sector.
- The Clean Energy for Rural and Remote Communities Program (NRCan) provides funding to Indigenous, rural, and remote communities to build out renewable energy projects, including from biomass sources.
Economic opportunity
- Global heavyweight: With the world's largest per-capita supply of biomass, Canada is uniquely positioned to enhance its leadership in biofuel production.
- Projected to benefit: Increasing domestic and global demand for biofuels is expected to create growth opportunities for Canada’s biofuels sector, with economic and job-creation benefits for Canadians.
- Export opportunity: By growing the biofuels sector, Canada has potential to capitalize on export opportunities and the growing global demand for biofuels and support reducing the carbon intensity of fuels.
- Other benefits: Biofuels can support rural and municipal economies, utilize waste feedstocks, and create value-added opportunities for Canadian agricultural and forestry sectors.
Careers in biofuels
Skills
- Bio-refining and fermentation processes: Various opportunities are available at biofuel production facilities that require similar skill types as that of a traditional petroleum refinery (e.g. pipe fitters, plumbers, electricians, general labourers).
- Industrial automation: Use control systems to operate biofuel production equipment.
- Supply chain and logistics: Manage the movement of raw materials and finished biofuels through procurement, storage distribution and delivery systems.
- Lifecycle assessment and regulatory reporting: Evaluate environmental impacts and ensure compliance with regulations.
- Occupational safety and emissions monitoring: Ensure safe working conditions and monitor the emission of pollutants.
- Process engineering: Design and optimize chemical and mechanical systems for biomass conversion and fuel production.
- Sales and procurement: Secure materials for biofuel production and manage sales strategies for biofuel products.
Anticipated workforce opportunities
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According to industry estimates, Canada's biofuel labour force could increase by up to 150% or more by 2035 -
High demand is expected for engineers, biochemists, mechanical technicians and logistics experts -
Regional training and employment opportunities, including in prairie provinces and Eastern Canada -
Potential for Indigenous partnerships, including in biomass sourcing and processing