Since the inception of NorthX in 2021, low carbon bio and synthetic fuels have been one of our key focus areas. These fuels represent one of the highest potential opportunities for near-term decarbonization in sectors that cannot electrify quickly. We assessed investment opportunities across the entire value chain. This includes feedstock supply, conversion technologies, and end-use sectors.
In 2023, NorthX launched a first-of-its-kind funding opportunity focused on forest residue management. The goal was to explore how BC could unlock value from residual biomass that is often burned, left in the forest, or considered uneconomic to transport.
The response revealed strong interest from innovators working in this space and highlighted how BC’s forest residues could support new low carbon fuel pathways.
From biocarbon to low carbon drop-in-fuels
This work laid the foundation for Biocarbon Rising: From Concept to Commercialization, a report released in July 2025, that examined the fundamentals of biocarbon, the commercial viability of how residual biomass could be converted into valuable low carbon products, and how this emerging sector can support deep decarbonization while delivering real economic value.
That report was an important stepping stone in understanding the opportunity for solid carbon and laying the foundation for further exploration of other forms of biocarbon. It revealed that BC has significant untapped potential in its biomass resources and that this potential could play a role in the province’s broader energy transition.
This work led us to believe there was also a significant market opportunity and potential for BC to lead in generating low carbon alternatives for liquid fuels. In particular, it raised a broader question about how the province’s biomass resources could support the production of low carbon drop-in fuels (DIFs) that can integrate directly into existing fuel systems. Unlike many emerging energy technologies, drop-in fuels can be used within today’s engines, infrastructure, and distribution networks. This creates a pathway to reduce emissions without waiting for entirely new energy systems to be built.
Understanding whether this opportunity could scale in BC became the starting point for the Fueling the Future: Scaling Low Carbon Drop-in Fuels in BC report.
The opportunity for BC to lead in DIFs
BC has ambitious climate targets and electrification is accelerating across many sectors. However, electrification won’t reach every sector quickly or affordably, particularly for fuel-intensive sectors critical to key industries and economic sovereignty such as aviation, marine transport, and heavy-duty trucking. These sectors will continue to rely on energy-dense liquid fuels for decades, which makes the need for alternative low carbon drop-in fuels derived from forest residues one of the most practical decarbonization pathways.
With access to significant volumes of residual forest biomass, established infrastructure, and policy foundations such as CleanBC and the Low Carbon Fuel Standard, combined with a growing innovation ecosystem and strong industrial expertise, these conditions create the potential for BC to become a leader in low carbon DIF production.
We are already seeing examples of what this opportunity could look like in practice. Projects such as the Slash-to-SAF Initiative led by the Lheidli T’enneh First Nation (LTFN) in Prince George, BC in partnership with Arbios Biotech and Canfor, are exploring how forest residues can be converted into sustainable aviation fuel using hydrothermal liquefaction (HTL) technology, turning an underused resource into a new source of low carbon energy. This project integrates Indigenous leadership, circular forestry practices, and cutting-edge biofuel production.
This early initiative demonstrates one of the most advanced efforts globally in this space and that BC’s resource base could support new pathways for producing low carbon fuels. They also reinforced the need for a deeper look at how these technologies could scale.
About the report
Fueling the Future: Scaling Low Carbon Drop-in Fuels in BC report was developed by NorthX in collaboration with The Transition Accelerator. It examines how BC could scale low carbon drop-in fuels and identify credible near-term pathways for deployment.
This work was supported by the Province of BC and guided by a multi-stakeholder advisory committee representing industry, government, First Nations, academia, innovators, and sector associations. This structure ensured the analysis reflected real-world conditions across the fuel value chain, from feedstock supply to end use.
Together with extensive market analysis and techno-economic modelling, this systems-based approach helped identify the most credible pathways for scaling drop-in fuels in BC.
“NorthX Climate Tech’s research is highlighting how lower carbon drop-in fuels can strengthen B.C.’s position as an energy leader while helping achieve our climate goals,” said Adrian Dix, Minister of Energy and Climate Solutions. “This research, which was supported by the Province’s Clean Energy and Major Projects Office, is also helping provide a roadmap for how government and industry can work together to build the infrastructure needed to scale production and help grow B.C.’s economy.”
This study is structured in three parts.
| Technical Brief A examines feedstock availability and market opportunities for drop-in fuels in BC. |
| Technical Brief B provides a detailed techno-economic assessment of emerging production technologies, evaluating eight potential pathways for producing drop-in fuels. |
| The final Fueling the Future: Scaling Low Carbon Drop-in Fuels in BC report synthesizes these findings into a practical overview of near-term opportunities for deployment in the province. |
Across the analysis, the report evaluates:
- Technology pathways for converting renewable feedstocks into DIFs
- Cost ranges relative to fossil fuel alternatives
- Feedstock availability and sustainability considerations
- Emissions reduction potential
- Key trade-offs across different production pathways
The report also maps the full value chain, from feedstock supply to fuel production, distribution, and end use. This systems perspective highlights the infrastructure needed to support scale, including regional bio-hubs, hydrogen supply, carbon management systems, and upgraded fuel distribution networks.
Looking ahead
Electrification will remain central to BC’s energy transition. To succeed, we will require a diverse portfolio of low carbon energy solutions. Low carbon DIFs can complement electrification by reducing emissions in sectors that are difficult to electrify. This report provides a framework for understanding how BC could scale this opportunity.
Explore the findings
Download the full report to learn more about the pathways for scaling low carbon drop-in fuels in BC.
NorthX and The Transition Accelerator will host a webinar where the report authors will walk through the findings and answer audience questions.
Register for the webinar today and join the conversation on how BC can strengthen its leadership in low carbon fuel innovation.
