Province says tax credit fuels investments in bioprocessing industry

The government says Imperial’s renewable diesel facility is the first of its kind in Alberta and will put the province on the map as a significant producer within Canada. Officials say it also contributes to Alberta’s goal of lowering emissions as renewable diesel has potential to reduce annual greenhouse gas emissions by about three million metric tonnes compared with conventional fuels. The province says the new facility at the Strathcona refinery is expected to produce more than one billion litres of renewable diesel per year, or 20,000 barrels per day.

To be considered for the tax credit program, the government says corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. Officials say the program offers a 12 per cent non-refundable tax credit base on eligible capital expenditures. Through this program, Alberta’s government says it has granted Imperial conditional approval for a tax credit estimated at about $70 million.

“This incredible project demonstrates that our province is becoming a world leader in alternative fuels and energy innovation,” says Brian Jean, Minister of Energy and Minerals. “Renewable diesel has great potential and is a welcome addition to our energy mix, which includes hydrogen and renewables.”

“Imperial’s renewable diesel facility will provide an important new lower-emission offering to Canada’s transportation sector. We are excited that the main source of feedstock for the facility will be from crops in Western Canada and thank the Government of Alberta for their recognition of the project’s benefits to the agricultural industry and our collective greenhouse gas emissions reduction goals,” adds Sheri Evers, senior vice president sustainability, commercial development and product solutions, Imperial.

The government says construction on the new facility is already underway at Imperial’s Strathcona refinery. The project is said to be creating about 600 local construction jobs for Albertans and hundreds more through investments by business partners. Once the facility is completed, officials say hundreds of farmers and workers in Alberta’s biofeedstock industry will enable the company to produce a fuel that helps reduce greenhouse gas emissions in the Canadian transportation sector.

“We are excited to see this investment being made in Alberta’s canola country,” says Chris Vervaet, executive director, Canadian Oilseed Processors Association. “Local production of renewable fuels derived from locally grown canola provides an important market diversification opportunity right here in our own backyard that will benefit farmers, processors and the entire value chain in the province of Alberta.”

Alberta government quick facts

Alberta’s business-friendly regulatory climate has one of the most competitive business tax regimes in the country with the lowest corporate tax rate in Canada.
The Canola industry is estimated to contribute $8 billion per year to Alberta’s economy, supporting 65,000 jobs in the province.
Canola is Alberta’s highest value crop with farm cash receipts worth $3.9 billion in 2023.
In 2023, Alberta produced almost 30 per cent of Canada’s canola at 5.4 million tonnes.
Production will increase in the years ahead as demand for canola used in food, fuel and feed applications continues to grow.
There are four canola processing facilities in Alberta, representing a combined capacity to process more than half of the canola produced in the province today.
Oilseed processing is growing in Canada with processing capacity expanding by 40 per cent over the last decade.
Since 2012, crush capacity more than doubled, reaching 11.1 million tonnes for canola and 3.2 million tonnes for soybeans in 2021.

by RDNewsNOW Staff

Province says tax credit fuels investments in bioprocessing industry

What's Trending