TIDEWATER RENEWABLES LTD. WELCOMES THE GOVERNMENT OF CANADA'S SUPPORT FOR THE CANADIAN BIOFUELS SECTOR

CALGARY, AB, Sept. 5, 2025 /CNW/ - Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS), owner of Canada's first renewable diesel refinery, welcomes the Government of Canada's announcement of a new Biofuels Production Incentive and support for the Canadian biofuels sector.

On September 5^th, 2025, the Government of Canada announced that it intends to introduce a new Biofuels Production Incentive, a time-limited production incentive which will provide over $370 million over two years to support the stability and resiliency of domestic producers of biodiesel and renewable diesel. The Biofuels Production Incentive is expected to be provided on a per litre basis to eligible Canadian producers of biodiesel and renewable diesel and is expected to be available from January 2026 to December 2027 for up to 300 million litres per facility. Further details about the Biofuels Production Incentive are expected from Natural Resources Canada in the coming weeks.  

The Corporation's renewable diesel refinery in Prince George, British Columbia is expected to produce between 150 million and 170 million litres per year during 2026 and 2027. This anticipated production positions the Corporation to benefit from the announced program and is expected to support improved cash flow and returns over the eligible period.

The Government of Canada also announced its intention to make targeted amendments to the Clean Fuel Regulations, and to work with provinces and territories to explore a more complementary approach to ensure the domestic low-carbon fuels industry thrives now and in the future.

"We are grateful for the support from the Government of Canada in levelling the playing field for Canadian renewable fuel producers and assisting Canada's canola producers, who are critical feedstock suppliers to the Corporation's renewable diesel facility. Once implemented, the measures announced today are expected to help support a competitive future for the Canadian renewable fuels industry and support the Corporation's future profitability and liquidity," 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 and sustainable aviation fuel. 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 canola oil, soybean oil, used cooking oil, distillers corn oil, tallow, 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 https://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 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 expected introduction of the Biofuels Production Incentive, including the amount of the incentive and the timing thereof, the expected timing for the release of further details about the Biofuels Production Incentive by Natural Resources Canada, the expected production at the Corporation's renewable diesel refinery, the expected effect of the Biofuels Production Incentive on the renewable fuels industry, the expected changes to the Clean Fuel Regulations, and the effect of the Biofuels Production Incentive and the changes to the Clean Fuel Regulations on the Corporation's business and its competitive position within the renewable fuels industry.

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 impact of the Biofuels Production Incentive, including the amount of incentive, and the changes to the Clean Fuel Regulations on the Canadian biofuels industry and the implementation and timing of the Biofuels Production Incentive and the changes to the Clean Fuel Regulations.

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, 2024 and its most recent management's discussion and analysis.

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.

For further information, please contact: Jeremy Baines, Chief Executive Officer, Tidewater Renewables Ltd., Email: [email protected]; Ian Quartly, Chief Financial Officer, Tidewater Renewables Ltd., Email: [email protected]