Alberta’s Bioenergy Strategy

In 2006, the Alberta Government announced a provincial bioenergy strategy as a catalyst in developing the province's burgeoning biofuel industry.  The strategy is accompanied by an investment of $239 million, over five years, to help renewable products enter the marketplace.  To date, Alberta's Bioenergy Strategy has provided $99.6 million through 61 grants.

These grants are part of three key initiatives - the Commercialization and Market Development Program, the Bioenergy Infrastructure Development Program and the Bio-Energy Producer Credit Program.

The Bioenergy Producer Credit Program is the centerpiece of the bioenergy strategy.  It encourages production and incorporation of bioenergy products such as ethanol, bio-diesel and biogas-electrical into the marketplace.  Between 2007 and 2011, commercial biofuel producers will receive $209 million in credits, with a minimum payout of nine cents per litre, equal to the Alberta Fuel Tax.

The Commercialization and Market Development Program offers grants to develop, expand and strengthen Alberta's biodiesel, biogas and ethanol production capacity.  Some $24 million will be dispersed between 2008 and 2009 to encourage research, commercialization, technology transfer, market development and advocacy for marketplace acceptance.

According to Alberta Energy, the Bioenergy Producer Credit and Commercialization and Market Development programs have spurred $850 million in private investment since their inception.

The third initiative, the Bioenergy Infrastructure Development Grant Program, allocates $6 million between 2008 and 2009 to expand Alberta's transmission and distribution infrastructure, connecting locally produced ethanol, biodiesel and biogas to the marketplace. 

Six additional initiatives are in the proposal stage.  These are intended to define clear regulatory protocols for the biofuel industry, increase regional development of processing facilities and offer financial support through improved provincial and national investment programs.  The proposed plans include aligning Alberta programs with the national renewable fuels strategy.