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Provincial funds help build biofuel plant at Lethbridge reducing emissions equivalent to 41,000 homes

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Diversifying the economy with cutting-edge tech

The Technology Innovation and Emissions Reduction (TIER) fund is supporting a new facility in southern Alberta that will create jobs and cut emissions by transforming agricultural waste.

Alberta’s government is using $4.7 million from the TIER fund through Emissions Reduction Alberta to create a $28.6-million facility in Lethbridge that will produce an estimated 70 million litres of high-value renewable fuel. This facility will be the first of its kind in Canada, turning local agricultural waste, inedible animal fats and used cooking oil into biodiesel fuel and glycerin.

The facility will buy more than $375 million of local feedstock from farmers over the next five years, generating about $500 million in revenue and supporting up to 130 local jobs in fields like engineering, construction and transportation. It will also cut about 224,000 tonnes of emissions each year – the same as reducing emissions from the electricity used by 41,000 homes.

“Alberta is home to world-renowned expertise on cutting agricultural emissions, and the Canary Biofuels facility is another world-class project Alberta’s government is supporting to diversify the economy and create jobs. I’m pleased to see the expansion of another groundbreaking Alberta-based technology that is cutting emissions and getting Albertans back to work.”

Jason Nixon, Minister of Environment and Parks

The facility’s biodiesel will have up to one-third the carbon intensity of petroleum diesel. The renewable fuel produced at the facility has also been pre-sold to a leading Canadian supplier of biodiesel whose customers include fuel retailers, wholesalers, distributors and fleet managers across Canada and the United States. This builds on Alberta’s strong record of environmental, social and governance actions.

“As world leaders in agricultural emission reductions, Alberta farmers will be key beneficiaries of the renewable diesel produced at this facility. Projects like this showcase the steps Alberta is taking to diversify the economy with cutting-edge technology and to create local jobs and opportunities.”

Grant Hunter, MLA for Taber-Warner

“Emissions Reduction Alberta continues to identify and invest in opportunities that accelerate the innovation required to strengthen Alberta’s economy and reduce greenhouse gases. Canary’s project will create new revenues for western Canadian agricultural producers and help meet the growing North American demand for biodiesel. This project is another example of what can happen when government, industry and entrepreneurs come together to deliver better economic and environmental outcomes.”

Steve MacDonald, CEO, Emissions Reduction Alberta

This funding is part of the province’s commitment of up to $750 million for emissions reduction and economic diversification programs and projects through the TIER fund and other funding that will directly support about 9,000 jobs and inject $1.9 billion into Alberta’s economy.

“Canary Biofuels is Alberta’s first Generation 2 biodiesel producer with its flagship facility in Lethbridge. Canary is excited to lead the path in Alberta in abating emissions through sustainable waste-based biodiesel production that supports the energy and agriculture industries in Alberta and the Prairies. Canary would like to thank all its investors and partners, including the Government of Alberta, for their tremendous support. Canary is proud to support Alberta in creating new jobs and helping Alberta industry on its journey to net zero.”

George Wadsworth, CEO, Canary Biofuels

“Canadian canola is used in biofuel production around the world because it’s a low-carbon, sustainable and renewable resource. We are excited to see more investment in Lethbridge that will directly benefit canola farmers and Alberta’s agriculture value chain.”

Brad Orr, director, Canola Council of Canada

“Canary Biofuels will provide long-term diversified business opportunity for R.K. Heggie Grain and Transmark. Local canola producers will have direct market access to the growing biofuel industry, and the livestock industry will get a much-needed supply of canola meal. Canary Biofuels is natural fit with R.K. Heggie Grain and Transmark to provide the company with feedstock for the plant and rail infrastructure to the get finished product to international markets.”

Brent Peterson, vice-president, Transloading, Transmark/RK Heggie Grains

TIER funding

The TIER system is funded by large industry that pay into the fund when they do not meet emissions targets. Alberta is using the TIER fund for a range of programs that are reducing emissions, boosting the economy and getting Albertans back to work.

Quick facts

  • The new Canary Biofuels facility is expected to be operational by fall 2021.
  • TIER helps industrial facilities, which account for more than 60 per cent of Alberta’s total emissions, find innovative ways to reduce emissions and invest in clean technology to save money and stay competitive.
  • Emissions Reduction Alberta invests revenues from TIER to accelerate the development and deployment of innovative clean technology solutions.
  • Since 2009, Emissions Reduction Alberta has committed $649 million toward 204 projects worth $4.5 billion that are reducing emissions, creating competitive industries and leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of almost 35 million tonnes of emissions by 2030.

This is a news release from the Government of Alberta.

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Alberta

Canada under pressure to produce more food, protect agricultural land: report

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Canada’s agricultural land is under increasing pressure to produce more food as demand grows domestically and internationally, while the industry grapples with limited resources and environmental constraints, a new report found. 

“We need to grow more food on less land and in a volatile climate,” said Tyler McCann, managing director of the Canadian Agri-Food Policy Institute.

The report by the institute released Thursday looks at the pressures on Canada’s agricultural land to produce more food while also mitigating and adapting to the effects of climate change, said McCann. 

Despite Canada being a big country, it doesn’t have as much agricultural land as people might think, said McCann, with the report noting that agricultural land makes up only around seven per cent of the country. 

Because of that, we can’t take what we do have for granted, he said. “We need to be really thoughtful about how we are using our agricultural land.” 

In 2020, Canada was the eighth largest country in terms of cropland area, the report said, with that cropland decreasing by seven per cent over the previous two decades. 

Canada is a major producer and net exporter of agriculture and agri-food products, the report said, exporting $91 billion in products in 2022, and one of the top 10 exporters of wheat, canola, pulses, pork and beef. 

In the coming years, Canada will face increased demand from countries whose populations are growing, the report said. 

“With population growth on one side and climate change on the other, Canada will be amongst an increasingly smaller number of countries that is a net exporter,” said McCann, noting that Canada’s own population is growing, and farmland also needs to be protected against urban sprawl. 

The wildfires clouding Canadian skies this week are a “vivid reminder” of the pressure that extreme weather and the changing climate are putting on the agricultural sector, said McCann. 

“We need to clearly mitigate … agriculture’s impact on climate change. But we also need to make sure agriculture is adapting to climate change’s impacts,” he said. 

One of the ways the world has responded to demand for increased agricultural production over time is to create more agricultural land, in some cases by cutting down forests, said McCann. But that’s not a viable option for Canada, which doesn’t have a lot of land that can be sustainably converted into farmland — and even if it could, doing so could have a variety of adverse environmental effects, he said. 

Some of the practices used to reduce emissions and sequester carbon in agriculture can also improve production output on existing farmland, the report found, such as precision agriculture and no-till practices.

However, intensifying the production of current agricultural land also comes with potential environmental downsides, the report said.

For example, McCann said fertilizer is an important part of sustainable agriculture, but there’s a balance to be struck because excessive use of fertilizer can quickly turn food production unsustainable. 

“We need to be a lot more thoughtful about the inputs that we’re using,” he said, adding the same can be said about the use of technology in agriculture and the policies and programs put in place to encourage sustainable intensification of Canadian agriculture. 

The report recommends that Canada adopt policies that provide financial incentives and technical assistance to farmers and develop regulatory frameworks promoting sustainable land use, as well as promoting education and awareness campaigns, so that the country can “ensure the long-term sustainability of its agricultural sector while protecting the environment.”  

This report by The Canadian Press was first published June 8, 2023.

Rosa Saba, The Canadian Press

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Lawyer tells Alberta’s highest court review board biased in de Grood’s case

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