Government officials and the CEO of Canary Biofuels discuss the expansion. (Lethbridge News Now)

By David Opinko / Dori Modney (Lethbridge News Now)

Biofuel plant near Lethbridge to expand, include more types of farm waste

Jul 27, 2021 | 2:35 PM

LETHBRIDGE, AB – The provincial government has announced $4.7-million in funding to expand a key biofuels processing facility just south of Lethbridge.

Coming from the Technology Innovation and Emissions Reduction (TIER) fund, it will be used to grow the types of organic materials Canary Biofuels will be able to turn into energy.

The TIER fund will help with a $28.6 million expansion near the Lethbridge Airport to produce an estimated 70 million litres of high-value renewable fuel. The plant will turn local agricultural waste, inedible animal fats, and used cooking oil into biodiesel fuel and glycerin.

More than $377 million in feedstock will be purchased from the region’s farms over the next five years to generate about $500 million in revenue and support 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 equivalent of reducing emissions from 41,000 homes.

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Environment and Parks Minister, Jason Nixon, notes Alberta is already home to world-renowned expertise on cutting agricultural emissions, and this investment builds on that expertise.

“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.”

George Wadsworth, CEO of Canary Biofuels, shared that the company is Alberta’s first second-generation biodiesel producer with its flagship facility in Lethbridge, and is expected to be operational by this fall.

“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.”

The renewable fuel produced at the facility has already 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.

Wadsworth says their primary customer base is in California.

The locally produced biodiesel will have up to one-third the carbon intensity of petroleum diesel and builds on Alberta’s environmental, social, and governance actions.

Taber-Warner MLA Grant Hunter explains Alberta farmers will be key beneficiaries of the locally produced renewable diesel product.

“Projects like this showcase the steps Alberta is taking to diversify the economy with cutting-edge technology and to create local jobs and opportunities.”

Canary Biofuels will provide a long-term diversified business opportunity for R.K. Heggie Grain and Transmark. As well, 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.

R.K. Heggie Grain and Transmark will provide Canary Biofuels with feedstock for the plant and rail infrastructure to transport finished products to international markets.