Red Deer, AB – The Alberta government says it 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 the funding 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.
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.