Exciting Wins for Canadian Biogas in Budget 2024

By Ryan Hart, BiogasWorld

Anaerobic digestion is an important tool in the toolbox of decarbonization efforts. The entire value chain offers effective solutions for the management of our organic wastes, sewage, and agricultural byproducts, it produces nutrient-dense fertilizers, and biogenic CO₂ which can be effectively utilized by various industries. For these reasons, it is critical for governments to support the development of the industry, encourage and facilitate new investment, and efficiently scale up this technology.

On April 16, 2024, the Canadian government released its 2024 budget, outlining federal priorities for fiscal year 2024-25. In the over 400-page document, biogas and RNG secured a place amongst the biofuels, and was targeted for increased development alongside renewable diesel and SAF for Canadian economic growth and renewable energy.

The budget supports industry development in 2024 through the expansion of pivotal industry programs including the Clean Fuel Regulations (CFR). The CFR will receive up to $500 million per year via program compliance payments, which will support the development of these fuels. Details about this expansion are scheduled for the fall economic statement.

NRCan’s Clean Fuel Fund has also received a boost of $776.3 million, available through the expanded program window of 2029-30. The program has also received a retooling to process and deliver funding more quickly.

Finally, the Canada Infrastructure Bank has received new investments of $500 million for biofuels under the green infrastructure investment stream.

Although some clarity is still required for details about the types of projects these funding packages are intended to support, the budget sends signals to the industry that it is on the radar of policymakers and there is a favorable view of the industry within Parliament.