$10 million from Alberta’s carbon levy earmarked for $20-million biodiesel facility

The pilot plant will use a unique manufacturing technology from SBI BioEnergy to produce biodiesel from Alberta-grown Canola

March 10, 2016

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Biodiesel facility canola Edmonton

The Alberta government will contribute $10 million to a $20-million biodiesel facility near Edmonton.

The pilot plant will use a unique manufacturing technology created by SBI BioEnergy, an Alberta-based company, to create biodiesel using provincially-grown canola as feed stock.

There is already a local market for the fuel. Commercial fuel producers in Alberta are required by law to blend renewable products into their fuels.

The government says it will fund its contribution to the facility using revenue generated from the carbon levy paid by large emitters.

What can you get for $10 million?

  • 10 million litres of renewable diesel fuel produced each year
  • 35 jobs generated
  • 112,000 tonnes of GHGs reduced by 2020
  • new market for Alberta’s off-grade canola

Alberta’s carbon tax

  • $20 per tonne by 2017
  • $30 per tonne by 2018
  • Large emitters, who currently pay $20 per tonne, will pay $30 per tonne by 2017

More posts by Elizabeth Hames

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4 Responses to “$10 million from Alberta’s carbon levy earmarked for $20-million biodiesel facility”


  1. Murray B says:

    Okay this move is hard to understand. Are they proposing to invest public money in companies that specialize in converting FOOD into automotive FUEL in a world where millions of people starve to death every year? That seems to be the wrong message to send to hungry people in other countries even if we do own the food. Just sayin.

  2. I thought most carbon crazies resided south of your border. This subsidy is a huge waste.

  3. Andrew says:

    In the world sloshing in oil and natural gas, converting food to fuel is just plain dumb. I see the rush into biofuel come from big agriculture wanting to get a slice of what was the booming oil price past decades. It was never about environmental reason. However, politicians love the green propaganda for their selling point in election. $10 million to create 35 jobs or 286k per job. Gov’t never talks about how many job lost by taking $10 million from other business and taxpayer.

  4. Dan says:

    A bit late here. I just wanted to point out that this might not be such a bad idea. They are talking about using poor quality crops to creat these biofuels. For example this year’s harvest was very poor for weather conditions. Using these crops to make biofuel may soften the blow to farmers incomes. Also such low grade crops might not be consumable by humans in the first place. I don’t know. It’s also mandated that renewable fuels be blended with our fuels. I’m not sure if that’s a good idea or not but we are importing something like a billion litres of ethanol a year from America so producing it here might not be the worst idea