An Alberta biofuel credit program has been extended another five years.
Alberta Energy’s BioEnergy Producer Credit Program encourages companies to build more ethanol and biofuel capacity by offering per litre incentives.
The program covers biofuel produced from grain, oilseeds and agricultural and municipal waste.
The incentive offers nine cents per litre for production from biofuel plants with capacity of 150 million litres or more per year.
Plants producing less than 150 million litres per year may apply for 14 cents per litre.
The credit is paid only for actual production and sale.
Rod Scarlett of Wild Rose Agricultural Producers said the average farmer is not likely to see a major benefit.
He said it will diversify demand for agricultural products but it may not increase prices paid to farmers because all manufacturers want to buy feedstocks at the lowest price possible.
“These plants will be supplied by farmers who live close to where they are constructed,” he said.
“It is not a province wide impact. It is a regional impact wherever these things get going.”
