Alberta is expanding and extending its bioenergy producer credits until 2016 and adding $58 million in 2011-12 to support bioenergy production for a total of $336 million over the next three years, the provincial government announced Monday.
That long-expected move will give developers a guarantee of the support they can expect for projects such as two large, canola-based biodiesel plants proposed for Vegreville and Lloydminster. The developers of both projects had also been hoping for federal credits, but the EcoEnergy program was fully committed last fall and last week's federal budget did not add new funds to the biofuel program.
As of April 1 in Alberta, an annual average of two per cent renewable diesel will be blended into diesel fuel and five per cent renewable alcohol in gasoline. The greenhouse gas emissions of renewable diesel or alcohol must be at least 25 per cent lower than the equivalent petroleum fuel.
"Alternative and renewable energy sources are a growing part of Alberta's energy portfolio," Energy Minister Ron Liepert said in a statement.
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