CALGARY, AB, March 6, 2025 /CNW/ - Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) is pleased to advise that the Canada Border Services Agency ("CBSA") formally initiated a countervailing (anti-subsidy) and anti-dumping duty investigation into imports of renewable diesel from the United States (the "Investigation"). The Investigation follows a complaint filed by Tidewater Renewables at the end of 2024 (the "Complaint").
Tidewater Renewables Ltd. Logo (CNW Group/Tidewater Renewables Ltd.)
In initiating the Investigation, CBSA confirms that Tidewater Renewables provided satisfactory evidence to support its allegations that U.S. renewable diesel imports were subsidized and dumped, causing harm to Tidewater Renewables.
Management anticipates that provisional duties will be imposed at the Canada-U.S. border within 90 days. Final duties, which would be in place for five years and can be renewed every five years thereafter, could be imposed by September 2025 following a ruling by the Canadian International Trade Tribunal. If final duties are imposed at the levels expected by management, valued between $0.50 and $0.80 per litre of renewable diesel imported from the United States, these duties would support long-term market stability for Tidewater Renewables' renewable diesel production and its related emission credits.
Neither the Complaint nor the Investigation is related to the ongoing trade dispute between the United States and Canada. The Complaint was filed prior to President Trump taking office and the imposition of tariffs by each country. Therefore, any countervailing (anti-subsidy) and anti-dumping duties imposed in connection with the Investigation would apply in addition to any tariffs imposed by Canada in response to trade actions taken by the United States.
"Tidewater Renewables supports free and fair trade in Canada's renewable diesel market. We believe the Investigation is an important step in levelling the unfair trade environment and offsetting unfair trade practices that have caused a flood of subsidized and dumped renewable diesel into Canada, significantly undermining the Canadian industry", said Jeremy Baines, Chief Executive Officer of Tidewater Renewables.
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 Investigation and the expected process, timing, results and impact thereof, including the Corporation's assessment, based on available information and advice from its advisors, of its likelihood of success and the potential duties which could be imposed on U.S. imports of renewable diesel; the effect and impact of potential duties imposed by the CBSA on the renewable diesel market and related emissions credit markets in Canada; the long-term marketability of the Corporation's renewable diesel products; and the ongoing trade dispute between the United States and Canada, the imposition of tariffs in connection therewith, and the effect of such tariffs on any countervailing (anti-subsidy) and anti-dumping duties that may be imposed in connection with the Investigation.
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 Investigation and potential remedies arising from the same; the amount of subsidization and dumping of U.S. renewable diesel imports; 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; and the effect of the imposition of tariffs on any countervailing (anti-subsidy) and anti-dumping duties that may be imposed in connection with the Investigation.
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 Investigation 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.
