A credit multiplier for renewable diesel and sustainable aviation fuel will help drive Canadian investment and home-grown biofuel production, but the final regulations must ensure overall demand for biofuels does not decline.

LLOYDMINSTER, SK, Oct. 27, 2026 /CNW/ -- Covenant Energy, a Saskatchewan-based biofuel company, welcomes the government of Canada's proposed Clean Fuel Regulations (CFR) amendments, which support renewable diesel and sustainable aviation fuel (SAF) through distinct credit multipliers of 1.5x and 1.8x, respectively.

By supporting low-carbon fuels produced at home, Covenant Energy believes that these amendments will help incentivize Canadian investment and home-grown production of biofuels – if the government adds a proper balancing mechanism to ensure demand stays whole.

Because a credit multiplier awards more credits for each litre of eligible fuel, without a balancing mechanism fuel suppliers could meet their CFR obligations with fewer total litres of low-carbon fuel. Covenant Energy urges the government of Canada to account for this in its final publication of the amendments to ensure that the overall demand for biofuels does not decrease. Otherwise, a measure designed to support domestic production and Canadian agriculture, could shrink the market it is meant to strengthen.

Covenant Energy looks forward to working with the federal government to finalize amendments that deliver on their intent.

QUOTES:

"These amendments are a welcome signal to current and prospective Canadian biofuel producers, and to the farmers who grow valuable Canadian feedstocks, such as canola. They recognize the value of home-grown biofuels, and the distinct investment needed to produce each fuel. But to work as intended, final regulations need to include a mechanism that balances the additional credits so that our overall demand for Canadian product does not fall.

-  Josh Gustafson, President & CEO, Covenant Energy Ltd.

About Covenant Energy: Founded in 2019, Covenant Energy holds the mission to become a Canadian leader in the transformative green fuel industry through the production of clean, renewable diesel (standard and arctic grades) and sustainable aviation fuel (SAF). To do so, the company is developing one of Canada's first stand-alone Hydrogenation-derived Renewable Diesel (HDRD) refineries. Located in Lloydminster, Saskatchewan, the facility will use Canadian-produced and processed canola as the primary feedstock to create a premier quality biofuel, producing an estimated 320 million litres of renewable diesel per year.

SOURCE Covenant Energy Ltd