Clean fuels in Canada
Clean fuels are already part of Canada’s energy future
They help cut emissions in the parts of daily life that are harder to electrify, such as heavy trucking, aviation, industry and parts of the gas system. This page explains the basics in plain language.
Figures are estimates and reflect available data as of April 2026. Programs and project counts may change over time.
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What are clean fuels?
A simple definition and how to think about emissions across the full fuel lifecycle.
Simple definition
Clean fuels are fuels that produce much lower greenhouse gas emissions than traditional fuels on a life-cycle basis. In simple terms, that means we look at emissions from the full chain, from how the fuel is made and moved to how it is used.
Why life-cycle emissions matter
This matters because not all lower-carbon options work the same way. Some clean fuels fit into today’s vehicles and fuel systems with minor changes. Others need new equipment, new supply chains or new infrastructure.
Clean fuel categories
4 clean fuels Canadians hear about most
A quick overview of the main fuel types and where they are used.
Hydrogen
Hydrogen is an energy carrier. It can be made using electricity or from natural gas with carbon capture to lower emissions. It is most discussed for heavy transport, industry, ports, rail, fertilizer and future export markets.
Biofuels
Biofuels come from biomass such as crops, waste oils and other organic materials. In daily life, Canadians are most likely to encounter ethanol in gasoline and biodiesel or renewable diesel in diesel fuel.
Renewable Natural Gas (RNG)
RNG starts as biogas from landfill gas, manure, wastewater or food waste. After upgrading, it can be injected into gas systems and used where natural gas is used today. It is often adopted first by utilities, fleets and large buildings.
Sustainable Aviation Fuel (SAF)
SAF is a lower-carbon aviation fuel designed for aircraft, where batteries are still difficult for many long-haul flights. It is one of the main ways Canada and the global aviation sector plan to reduce flight emissions over time.
Where clean fuels fit best
No single clean fuel does everything
Different fuels fit different sectors. The right choice depends on distance, energy demand, infrastructure and refuelling needs.
Biofuels in everyday life
Many Canadians already use clean fuels without noticing
Biofuels are often the easiest way people connect with clean fuels because they are already part of the fuel system.
What biofuels are
Biofuels are made from biological material such as crops, waste oils and other organic feedstocks. They are often blended into existing fuel systems, which is why many Canadians already use them without making a major change in how they drive.
What Canadians are most likely to encounter
- Ethanol in gasoline
- Biodiesel in diesel
- Renewable diesel in diesel
- Future growth in sustainable aviation fuel for aircraft
Current Canadian context
The Canada Energy Regulator says 158 PJ of liquid biofuels were used in Canada in 2023. That included 91 PJ of ethanol, 24 PJ of biodiesel and 43 PJ of renewable diesel. About 84% of those liquid biofuels were used as transportation fuels.
Why biofuels matter
Biofuels matter because they can lower emissions in parts of the transportation system while using much of the equipment, vehicles and distribution systems people already have. They are often a bridge solution, especially in sectors where replacing every engine quickly is unrealistic.
Biofuels are lower-carbon, not automatically zero-emission. Their role is to reduce life-cycle emissions while working within existing systems.
Renewable natural gas and biogas
How renewable gas fits into today’s systems
How RNG starts
Biogas comes from decomposing organic material such as landfill gas, wastewater, manure and food waste. When biogas is cleaned and upgraded to pipeline quality, it becomes renewable natural gas, or RNG.
Where it fits
RNG can be blended into existing gas systems and used in buildings, fleets and industry. Because it works with parts of today’s gas infrastructure, it is often discussed as a lower-carbon option where electrification is still incomplete or more difficult.
Current North American context
The Canada Energy Regulator says gaseous biofuels have grown rapidly and that more than 500 renewable natural gas facilities now supply North America’s gas system. NRCan also notes that, in 2020, biogas in Canada was used to produce RNG, electricity and pipeline gas.
What regular Canadians should know
Most households will not “switch to RNG” the way they switch a phone or an appliance. The change usually happens through utilities, municipal systems, large property owners or voluntary utility programs that increase the share of renewable gas in supply.
Sustainable aviation fuel
One of the key solutions for a hard-to-electrify sector
Aviation requires high energy density and long range — making lower-carbon fuels like SAF an important part of the transition.
Why SAF matters
Aviation is one of the hardest sectors to decarbonize because aircraft need high energy density and long range. Sustainable aviation fuel is one of the main lower-carbon options being explored and scaled for this sector.
Current Canadian context
Transport Canada’s Aviation Climate Action Plan sets a net-zero by 2050 vision for aviation and includes an aspirational target for sustainable aviation fuel by 2030.
Early progress
Canada produced its first batch of SAF in 2024 — about 101,000 litres at the Burnaby Refinery in British Columbia (CER).
SAF is not a household fuel. Most people will encounter it through airline and airport climate discussions, future airline supply agreements and broader national efforts to reduce aviation emissions.
What this means for Canadians
How clean fuels show up in everyday life
A practical view of where people may notice changes — and where they may not.
Fuel is already changing
Some of the fuel already used in Canada is cleaner than it used to be because of blending rules and lower-carbon fuel policies.
Changes often start with fleets
Freight fleets, transit systems and airports will often adopt clean fuels before households notice a major change at home.
Utilities move first
Utilities and large buildings may use RNG or other lower-carbon fuel options before individual homeowners do.
EVs remain the main consumer path
For many personal vehicles, EV charging is still the simpler and more direct consumer story. Clean fuels become more important where batteries are harder to use.
This page is about understanding how clean fuels fit into Canada’s energy system. It does not mean every household needs to adopt hydrogen or renewable natural gas directly. In most cases, these changes happen through fuel suppliers, utilities, fleets and large systems.
Canada’s approach
How clean fuels fit into the national transition
Clean fuels are part of a broader set of policies and investments shaping how Canada reduces emissions across different sectors.
Clean Fuel Regulations
Environment and Climate Change Canada says the Clean Fuel Regulations require gasoline and diesel suppliers to gradually reduce the carbon intensity of the fuels they produce and sell in Canada. The goal is a decrease of about 15% below 2016 levels by 2030, delivering up to 26 Mt of GHG reductions in 2030.
Clean Fuels Fund
NRCan says the Clean Fuels Fund is a $1.5 billion federal fund designed to de-risk capital investment for new or expanded clean fuel production facilities and related supply chains in Canada.
Hydrogen and aviation strategies
Canada’s Hydrogen Strategy and Aviation Climate Action Plan show where hydrogen and sustainable aviation fuel fit into the broader transition, especially in the sectors that are harder to electrify quickly.
Common concerns
Five common concerns — answered
Reality: Not always. Many Canadians already use ethanol-blended gasoline or lower-carbon diesel blends without changing vehicles. Some clean fuels work through existing systems while larger vehicle transitions happen gradually.
Reality: Different tools fit different jobs. EVs are often a stronger fit for many passenger vehicles. Hydrogen is usually discussed more for heavy transport, industry and export markets.
Reality: It is used in similar systems, but the source is different. RNG is made from organic waste streams and is valued for its lower life-cycle emissions. Supply is also limited, so it is usually targeted where it helps most.
Reality: Ethanol, biodiesel, renewable diesel and sustainable aviation fuel are different products with different feedstocks, uses and emissions profiles. This is why the page should name them clearly instead of using one broad label.
Reality: Consumers encounter clean fuels through blended fuels, public transit, flights, utility programs and freight systems that support the goods they buy every day.
Want the next step?
Explore the EV Charging page for home charging, charger levels, charging costs and public charger basics. Then join a free Drive Clean Canada workshop in your city to learn about clean transportation and fuel options in Punjabi, Hindi or English.