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The volume of ethanol consumed in Canada generally exceeds the volume that is produced, making Canada a net importer. In 2024, the forecast ethanol consumption stood at **** billion liters in comparison to **** billion liters in production. Global ethanol production stands at almost ** billion gallons.

What is ethanol?

Ethanol is a liquid alcohol that is formed from the fermentation of sugar or converted starches from grains or agricultural feedstocks. Ethanol is produced for a range of different applications, like fuel ethanol. Ethanol can be blended with gasoline to be used as a more environmentally-friendly fuel in modern gasoline-powered vehicles. Ethanol is considered renewable as it is produced from biomass and produces fewer emissions than gasoline or diesel. Most ethanol in Canada is produced from corn and wheat. 

The role of biofuels in Canada's transportation sector

Canada is among the top ten producing countries of fuel ethanol in the world. However, it produces far less than the neighboring United States, which is by far the largest producer of fuel ethanol and biofuels in general. Biofuels account for around **** percent of transportation fuel demand in Canada and are expected to increase in importance until the end of the decade.