Government Policies Drive Canada’s Role as Top U.S. Ethanol Market

Friday, February 27, 2026 at 12:00 AM

Government regulations will determine the future of American ethanol sales to Canada, which remains the United States' biggest ethanol customer. A biofuels industry leader emphasizes that policy decisions create market opportunities and incentivize long-term carbon reduction efforts.

Government regulations will determine the trajectory of American ethanol sales to Canada, which continues to be the United States’ primary ethanol market. According to Fred Ghatala, who leads the Advanced Biofuels Canada Association, the biofuels industry operates as a “policy game.”

“Renewable fuels exist because policy makes room in the market, and then creates structures that encourage carbon intensity reductions over the long-term,” Ghatala explained during his participation on a discussion panel.

The industry executive’s comments highlight how government decisions and regulatory frameworks will shape the ongoing trade relationship between American ethanol producers and their largest international customer.

More from TV Delmarva Channel 33 News