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Alberta

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

The beauty of economic corridors: Inside Alberta’s work to link products with new markets

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From the Canadian Energy Centre

Q&A with Devin Dreeshen, Minister of Transport and Economic Corridors

Devin Dreeshen, Alberta’s Minister of Transportation
and Economic Corridors.

CEC: How have recent developments impacted Alberta’s ability to expand trade routes and access new markets for energy and natural resources?

Dreeshen: With the U.S. trade dispute going on right now, it’s great to see that other provinces and the federal government are taking an interest in our east, west and northern trade routes, something that we in Alberta have been advocating for a long time.

We signed agreements with Saskatchewan and Manitoba to have an economic corridor to stretch across the prairies, as well as a recent agreement with the Northwest Territories to go north. With the leadership of Premier Danielle Smith, she’s been working on a BC, prairie and three northern territories economic corridor agreement with pretty much the entire western and northern block of Canada.

There has been a tremendous amount of work trying to get Alberta products to market and to make sure we can build big projects in Canada again.

CEC: Which infrastructure projects, whether pipeline, rail or port expansions, do you see as the most viable for improving Alberta’s global market access?

Dreeshen: We look at everything. Obviously, pipelines are the safest way to transport oil and gas, but also rail is part of the mix of getting over four million barrels per day to markets around the world.

The beauty of economic corridors is that it’s a swath of land that can have any type of utility in it, whether it be a roadway, railway, pipeline or a utility line. When you have all the environmental permits that are approved in a timely manner, and you have that designated swath of land, it politically de-risks any type of project.

CEC: A key focus of your ministry has been expanding trade corridors, including an agreement with Saskatchewan and Manitoba to explore access to Hudson’s Bay. Is there any interest from industry in developing this corridor further?

Dreeshen: There’s been lots of talk [about] Hudson Bay, a trade corridor with rail and port access. We’ve seen some improvements to go to Churchill, but also an interest in the Nelson River.

We’re starting to see more confidence in the private sector and industry wanting to build these projects. It’s great that governments can get together and work on a common goal to build things here in Canada.

CEC: What is your vision for Alberta’s future as a leader in global trade, and how do economic corridors fit into that strategy?

Dreeshen: Premier Smith has talked about C-69 being repealed by the federal government [and] the reversal of the West Coast tanker ban, which targets Alberta energy going west out of the Pacific.

There’s a lot of work that needs to be done on the federal side. Alberta has been doing a lot of the heavy lifting when it comes to economic corridors.

We’ve asked the federal government if they could develop an economic corridor agency. We want to make sure that the federal government can come to the table, work with provinces [and] work with First Nations across this country to make sure that we can see these projects being built again here in Canada.

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2025 Federal Election

Next federal government should recognize Alberta’s important role in the federation

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From the Fraser Institute

By Tegan Hill

With the tariff war continuing and the federal election underway, Canadians should understand what the last federal government seemingly did not—a strong Alberta makes for a stronger Canada.

And yet, current federal policies disproportionately and negatively impact the province. The list includes Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off British Columbia’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.

Meanwhile, Albertans contribute significantly more to federal revenues and national programs than they receive back in spending on transfers and programs including the Canada Pension Plan (CPP) because Alberta has relatively high rates of employment, higher average incomes and a younger population.

For instance, since 1976 Alberta’s employment rate (the number of employed people as a share of the population 15 years of age and over) has averaged 67.4 per cent compared to 59.7 per cent in the rest of Canada, and annual market income (including employment and investment income) has exceeded that in the other provinces by $10,918 (on average).

As a result, Alberta’s total net contribution to federal finances (total federal taxes and payments paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion from 2007 to 2022—more than five times as much as the net contribution from British Columbians or Ontarians. That’s a massive outsized contribution given Alberta’s population, which is smaller than B.C. and much smaller than Ontario.

Albertans’ net contribution to the CPP is particularly significant. From 1981 to 2022, Alberta workers contributed 14.4 per cent (on average) of total CPP payments paid to retirees in Canada while retirees in the province received only 10.0 per cent of the payments. Albertans made a cumulative net contribution to the CPP (the difference between total CPP contributions made by Albertans and CPP benefits paid to retirees in Alberta) of $53.6 billion over the period—approximately six times greater than the net contribution of B.C., the only other net contributing province to the CPP. Indeed, only two of the nine provinces that participate in the CPP contribute more in payroll taxes to the program than their residents receive back in benefits.

So what would happen if Alberta withdrew from the CPP?

For starters, the basic CPP contribution rate of 9.9 per cent (typically deducted from our paycheques) for Canadians outside Alberta (excluding Quebec) would have to increase for the program to remain sustainable. For a new standalone plan in Alberta, the rate would likely be lower, with estimates ranging from 5.85 per cent to 8.2 per cent. In other words, based on these estimates, if Alberta withdrew from the CPP, Alberta workers could receive the same retirement benefits but at a lower cost (i.e. lower payroll tax) than other Canadians while the payroll tax would have to increase for the rest of the country while the benefits remained the same.

Finally, despite any claims to the contrary, according to Statistics Canada, Alberta’s demographic advantage, which fuels its outsized contribution to the CPP, will only widen in the years ahead. Alberta will likely maintain relatively high employment rates and continue to welcome workers from across Canada and around the world. And considering Alberta recorded the highest average inflation-adjusted economic growth in Canada since 1981, with Albertans’ inflation-adjusted market income exceeding the average of the other provinces every year since 1971, Albertans will likely continue to pay an outsized portion for the CPP. Of course, the idea for Alberta to withdraw from the CPP and create its own provincial plan isn’t new. In 2001, several notable public figures, including Stephen Harper, wrote the famous Alberta “firewall” letter suggesting the province should take control of its future after being marginalized by the federal government.

The next federal government—whoever that may be—should understand Alberta’s crucial role in the federation. For a stronger Canada, especially during uncertain times, Ottawa should support a strong Alberta including its energy industry.

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