Biofuels are liquid fuels made from plants, waste oils or animal fats that replace part of the gasoline and diesel we burn. In Canada the big three are ethanol, blended into gasoline; biodiesel, blended into diesel; and renewable diesel, a newer fuel that's chemically almost identical to petroleum diesel. If you fill up at a Canadian pump, you're very likely already using some biofuel. How much they cut emissions depends heavily on what they're made from.
Key takeaways
- Most Canadian gasoline contains ethanol, commonly up to 10% (E10). Diesel typically contains a smaller share of biodiesel or renewable diesel.
- Ethanol comes mainly from corn and wheat. Biodiesel and renewable diesel come from vegetable oils such as canola, used cooking oil and animal fats.
- Renewable diesel is a "drop-in" fuel that can replace diesel entirely in existing engines. Biodiesel is usually limited to blends.
- Federal and provincial rules require renewable content in fuel and reward lower carbon intensity.
- Lifecycle emissions vary: waste-based fuels generally score best, while crop-based fuels raise land-use questions.
Ethanol
What it is: An alcohol made by fermenting sugars, mostly from corn in Ontario and Quebec and wheat on the Prairies.
How it's used:
- E10: Up to 10% ethanol, the standard blend at most Canadian stations.
- E15: Up to 15%, available in some markets and approved for many newer vehicles. Check your owner's manual.
- E85: Up to 85%, only for flex-fuel vehicles and sold at relatively few stations.
Things to know: Ethanol carries roughly two-thirds the energy of gasoline per litre, so higher blends slightly reduce fuel economy. It raises octane, which is why premium fuels may also contain it. Small engines and older equipment may run better on ethanol-free gasoline, so check the manufacturer's advice.
Biodiesel
What it is: Fatty acid methyl ester (FAME), made by reacting vegetable oils or animal fats with methanol. Canola is a major Canadian feedstock, along with used cooking oil and tallow.
How it's used: Typically blended at 2–5% (B2–B5) in winter and up to 20% (B20) in some fleets and warmer months.
Things to know: Biodiesel can thicken or gel in cold weather, so Canadian suppliers adjust blends seasonally and use additives. Many engines are approved for B5 and some for B20. Higher blends need manufacturer approval.
Renewable diesel
What it is: Also called hydrotreated vegetable oil (HVO), made by treating fats and oils with hydrogen at high temperature. The result is a hydrocarbon fuel nearly identical to petroleum diesel.
How it's used: It can be blended at any ratio or used straight (R100) in existing diesel engines, trucks, buses and generators, with no modifications.
Things to know: Renewable diesel generally handles cold better than biodiesel, and some grades are made specifically for winter use. It costs more to produce, and it competes for the same limited fats and oils as biodiesel and sustainable aviation fuel.
Side by side
| Fuel | Replaces | Main Canadian feedstocks | Typical blend | Works in existing engines? |
|---|---|---|---|---|
| Ethanol | Gasoline | Corn, wheat | E10 (up to E15; E85 in flex-fuel) | Yes at E10; check manual above that |
| Biodiesel (FAME) | Diesel | Canola, used cooking oil, tallow | B2–B20 | Yes at low blends |
| Renewable diesel (HVO) | Diesel | Canola, used cooking oil, tallow | Any, up to 100% | Yes |
Policy: why biofuels are in your tank
Federal rules have long required an average renewable content of about 5% in gasoline and 2% in diesel. Federal Clean Fuel Regulations also require fuel suppliers to lower the carbon intensity of their fuels over time, and blending biofuels is one way to comply. Several provinces, including British Columbia, Ontario and Quebec, have their own renewable fuel or low-carbon fuel rules, some with higher requirements. The federal government has also signalled support for domestic biodiesel and renewable diesel production. Policies evolve, so check your province guide for the latest.
The climate debate
Biofuels reduce emissions because the carbon in them was recently absorbed by plants. But the full picture includes:
- Farming inputs. Fertilizer, fuel for tractors and processing energy all add emissions.
- Land-use change. If biofuel demand pushes farming into forests or grasslands elsewhere, the carbon released can wipe out the benefits. This is hard to measure and debated.
- Feedstock limits. Waste oils and fats offer the best lifecycle scores but are in limited supply.
- Food vs. fuel. Using crops for fuel can affect food prices and land availability, though the size of the effect is debated.
Lifecycle analyses usually find meaningful reductions compared with fossil fuels, often larger for waste-based fuels than for crop-based ones. Our carbon page explains how lifecycle emissions are counted.
Where biofuels fit in the bigger picture
For personal vehicles, electric vehicles generally offer larger emission reductions on most Canadian grids, and EV adoption is growing. Biofuels still have an important role:
- Cutting emissions from today's vehicles, including the millions of gasoline and diesel cars already on the road.
- Heavy trucks, farm equipment, rail and marine, where electrification is harder.
- Aviation, through sustainable aviation fuel made by similar processes.
- Heating oil, where renewable blends can lower the carbon intensity of oil furnaces and boilers.
Our bioenergy hub and What Is Bioenergy? primer cover the broader context.
Frequently asked questions
Will ethanol damage my car?
Virtually all modern cars are designed for E10. Many newer vehicles are also approved for E15. Check your owner's manual, and be more cautious with classic cars, boats and small engines.
What's the difference between biodiesel and renewable diesel?
Both come from fats and oils, but they're made differently. Biodiesel is a chemically distinct fuel usually limited to blends. Renewable diesel is chemically nearly identical to petroleum diesel and can be used at 100%.
Are biofuels better than electric vehicles?
For most personal driving in Canada, EVs typically deliver larger lifecycle emission cuts. Biofuels are most valuable where electrification is difficult and for reducing emissions from vehicles already on the road.
The bottom line
Biofuels are already a routine part of Canada's fuel supply, and renewable diesel in particular is expanding. They work in existing engines and can cut emissions meaningfully, especially when made from wastes. They aren't unlimited or automatically green, though, so they're best seen as one tool among many for cleaner transportation.
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