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

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.”
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.”
“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.”
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.”
“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.”
“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.”
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.
Alberta
Energy sector will fuel Alberta economy and Canada’s exports for many years to come

From the Fraser Institute
By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.
Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.
In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.
Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).
Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.
The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.
Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.
Alberta
The beauty of economic corridors: Inside Alberta’s work to link products with new markets

From the Canadian Energy Centre
Q&A with Devin Dreeshen, Minister of Transport 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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