The Biofuels Production Incentive is designed to protect the resiliency of domestic producers.

The Incentive will provide a tiered per-litre incentive structure with support for eligible fuel produced in the 2026 and 2027 calendar years and will prioritize the use of North American feedstocks and sale of the fuel into the Canadian market.

Additionally, the incentive provided will be non-repayable. These measures will help accelerate the growth and development of the domestic biofuels industry.

The government pledged $370 million on production incentives.