CALGARY,
AB, Jan. 6, 2025 /CNW/
- Tidewater Renewables Ltd. ("Tidewater Renewables" or
the "Corporation") (TSX: LCFS) has taken decisive action to protect
fair competition in the Canadian renewable diesel market by filing
a countervailing (anti-subsidy) and anti-dumping duty complaint
(the "Complaint") with the Canada Border Services Agency ("CBSA")
at the end of 2024. The Complaint targets unfairly traded imports
of renewable diesel from the United
States that significantly undermine the Canadian
industry.
As previously disclosed, Tidewater Renewables engaged external
trade law counsel for the purposes of evaluating legal options to
address market distortions caused by unfair U.S. subsidies and
dumping practices, including advising on and preparing the
Complaint. This action reflects the Corporation's commitment to
ensuring a level playing field for its production and sale of
renewable diesel and BC LCFS and CFR emission credits.
If Tidewater Renewables is successful in this process, which
management believes has a reasonably high likelihood of success,
duties valued between $0.50 and
$0.80 per litre could be imposed at
the Canada/U.S. border to counter
the subsidized and dumped U.S. renewable diesel imports. This
reflects the Corporation's estimates that U.S. renewable diesel
imports benefit from an average amount of subsidization and dumping
of between 40% to 60%. Tidewater Renewables believes these measures
are essential to remedy and offset the significant impact of U.S.
subsidies, such as the Blender's Tax Credit and the forthcoming
Production Tax Credit, which enable U.S. producers to export
renewable diesel to Canada at
artificially low prices.
"Tidewater Renewables supports healthy competition in the
renewable diesel market but cannot compete in a market severely
distorted by foreign subsidies and dumping practices," said
Jeremy Baines, Chief Executive
Officer of Tidewater Renewables. "Our legal action is necessary to
restore fairness in the marketplace, protect our employees and
shareholders, and secure the long-term viability of Canada's renewable diesel industry."
In accordance with the Special Import Measures Act,
CBSA's investigation is expected to proceed swiftly. CBSA may
publicly initiate an investigation in February 2025, with preliminary duties
potentially being imposed as early as May
2025. Final duties, which will be subject to a ruling by the
Canadian International Trade Tribunal, may be imposed by September
2025. If final duties are imposed at the levels expected by
management, they would support long-term market stability for
Tidewater Renewable's renewable diesel production and its related
emission credits.
This important step is part of Tidewater Renewables' broader
commitment to supporting Canada's
energy transition and ensuring the integrity of the Canadian
renewable fuels market.
ABOUT TIDEWATER RENEWABLES
Tidewater Renewables is a multi-faceted, energy transition
company. The Corporation is focused on the production of low carbon
fuels, including renewable diesel. The Corporation was created in
response to the growing demand for renewable fuels in North America and to capitalize on its
potential to efficiently turn a wide variety of renewable
feedstocks (such as tallow, used cooking oil, distillers corn oil,
soybean oil, canola oil and other biomasses) into low carbon fuels.
Tidewater Renewables' objective is to become a leading Canadian
renewable fuel producer. The Corporation is pursuing this objective
through the ownership, development, and operation of clean fuels
projects and related infrastructure, that utilize existing proven
technologies. Additional information relating to Tidewater
Renewables is available on SEDAR+
at www.sedarplus.ca and
at www.tidewater-renewables.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. The use
of any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "intend", "project", "would", "could", "should",
"believe" and similar expressions are intended to identify
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. The Corporation
believes the expectations reflected in the forward-looking
statements used herein are reasonable, but no assurance can be
given that these expectations will prove to be correct, and such
forward-looking statements included in this press release should
not be unduly relied on.
In particular, this press release contains forward-looking
statements concerning the Complaint and the expected process,
timing , results and impact thereof, including the Corporation's
assessment of its likelihood of success and the potential duties
which could be imposed on U.S. imports of renewable diesel, based
on available information and advice from its advisors, as well as
the effect and impact of such duties on the renewable diesel market
and related emissions credit markets in Canada and the long-term marketability of the
Corporation's renewable diesel products.
Although the forward-looking statements contained in this press
release are based upon assumptions which management of the
Corporation believes to be reasonable, the Corporation cannot
assure shareholders, investors or other parties that actual results
will be consistent with these forward-looking statements. Any
forward-looking statements contained in this press release
represent expectations as of the date of this press release and are
subject to change after such date. However, the Corporation is
under no obligation (and the Corporation expressly disclaims any
such obligation) to update or alter any statements containing
forward-looking information, the factors or assumptions underlying
them, whether as a result of new information, future events or
otherwise, except as required by law. With respect to the
forward-looking statements contained in this press release, the
Corporation has made assumptions regarding the process, timing,
results and impact of the Complaint and potential remedies arising
from the same; the amount of subsidization and dumping of U.S.
renewable diesel imports; and the impact of imposed Canadian duties
on the renewable diesel market and related emissions credit market
in Canada and the long-term
positive impact on the Corporation's products and business.
In addition, the Corporation is subject to a number of risks and
uncertainties, many of which are beyond the Corporation's control.
Such risks and uncertainties include the factors discussed under
"Risk Factors" in the Corporation's annual information form for the
year ended December 31, 2023 and its
most recent management's discussion and analysis. In
addition, if no duties or other actions are taken by the CBSA as a
result of the Complaint or such duties or actions are not imposed
or taken on a timely basis, this could have a significant adverse
impact on the Corporation's business and objectives.
All the forward-looking statements in this press release are
qualified by the cautionary statements herein. Further information
about factors affecting forward-looking statements and management's
assumptions and analysis thereof is available in filings made by
the Corporation with Canadian securities commissions available on
SEDAR+ at www.sedarplus.ca.
SOURCE Tidewater Renewables Ltd.