03.OCT.2006 | Alberta Government

New bioenergy investment energizes Alberta's agriculture sector

The Alberta government is committing $239 million over the next five years to strengthen and expand Alberta's bioenergy sector by encouraging manufacturers to bring more bioenergy products to the marketplace.

Doug Horner, Minister of Agriculture, Food and Rural Development said this investment provides a significant opportunity to position Alberta as a leader in producing renewable energy from organic materials. It will also create new markets and new environmentally-friendly product and process opportunities for Alberta's agriculture industry.

"Bioenergy is emerging as the foundation of key value-added biorefining industries across all of North America, and this funding ensures Alberta has the policies and programs in place to take advantage of the exciting opportunities developing in this sector," said Horner. "The development of bioenergy infrastructure within the province will not only add great value to our agriculture industry, it will also contribute to the long-term sustainable growth of Alberta's economy and strengthen our rural communities."

The investment will be used to administer the Renewable Energy Producer Credit program that will help Alberta industry effectively compete with other jurisdictions that provide programs and tax exemptions to distributors who blend biofuels. At a total cost of $209 million, the four-year program is being established to serve as a catalyst in enabling the introduction of renewable products into the traditional fuels and energy marketplace. The credits will be available to eligible commercial bioenergy products processed in Alberta from April 2007 to March 2011. This program will replace the existing Alberta ethanol road tax exemption policy.

An additional $30 million, three year commitment will be initiated immediately through a commercialization program supporting technology investment in the province. It will support establishment of the infrastructure required to market and distribute bioenergy products within the existing market for fuel or electrical power. The $30 million in funding is available through the Energy Innovation Fund. "The development of alternative fuels is a key pillar of Alberta's Integrated Energy Vision," Energy Minister Greg Melchin said. "This is an important investment to further diversify Alberta's vast and diverse energy portfolio."

Both the $209 million and $30 million investments are key components of Alberta Agriculture's nine-point bioenergy plan.

The $200-million Energy Innovation Fund is a provincial initiative that supports Alberta's Integrated Energy Vision: to build on world-class knowledge, expertise and leadership to responsibly develop our vast energy resources for the benefit of current and future generations. The fund was announced in August. Sponsor Ministries are Energy; Agriculture, Food and Rural Development; Environment; Sustainable Resource Development; and Innovation and Science.