Bioenergy Producer Program

Notice:

The Annual Report documents have been posted online. Annual Reports are due on or before June 30, 2017.

The Alberta Climate Change Office will accept invoices for Program Period 1 to be submitted without the third party verified life cycle assessment; however payments will be processed once the verification report has been received and validated.

All questions about the BPP can be directed to:

About this Program

The Bioenergy Producer Program (BPP) is intended to support bioenergy production capacity in Alberta in order to:

  • reduce greenhouse gas emissions from the use of fossil fuel alternatives
  • create value-added opportunities with economic benefits

This short-term program is meant to support bioenergy production while a bioenergy industry review is conducted to inform long-term policy options that would support a sustainable sector in Alberta.

Legislation or Legal Mandate for Program

The BPP operates under the general legal requirements of the Environment and Sustainable Resource Development Grant Regulation (AR 182/2000) of the Government Organization Act. Visit the Alberta Queen’s Printer website at:

How the Program Works

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Who is eligible to apply?

The BPP is intended for Alberta bioenergy producers. In order to be eligible for funding under the program, participants must have produced bioenergy between April 1, 2016 and the program’s announcement date, or if the facility is currently in construction, they must be able to demonstrate that they will be producing on or before July 1, 2017.

Producers who participated in the previous Bioenergy Producer Credit Program and have not satisfied the full conditions of their agreement (e.g. owing money) will not be eligible to receive funding under the new program. However, if producers settle any outstanding issues from their previous agreements before 4:30 p.m. MST on November 18, 2016, they will be eligible to apply.

Consumers of qualifying bioenergy products are not eligible.

What is the time period and budget of the program?

The BPP has a $60 million program budget that will span an 18 month period:

  • The first program period will grant $40 million to eligible producers and begin retroactively from April 1, 2016 and end on March 31, 2017
  • The second program period will grant $20 million to eligible producers and begin April 1, 2017 and end on September 30, 2017

The funding a facility may receive in the first program period under all products cannot exceed $4 million, and $2 million in the second program period. The Alberta Climate Change Office will determine the level of support provided to all successful applicants in conjunction with the overall demand for funding.

Will there be another application period for the program?

The BPP will only have one (1) application period, with an extension for "in construction" facilities.

Applicants that are approved will be eligible for funding for the entire duration of the BPP based on their initial application, subject to complying with the terms and conditions of the grant agreement.

What bioenergy products are eligible under the program?

Products supported under the BPP include:

  • Liquid biofuels, including renewable diesel, pyrolysis oil, ethanol, advanced drop-in fuels and other renewable fuel alcohols produced from feedstocks other than cereal grain, and ethanol and other renewable fuel alcohols produced from cereal grain at integrated facilities; qualifying biofuels must be certified to meet fuel-grade ASTM or Canadian General Standards Board (CGSB) specifications
  • Biogas (green natural gas) from manure, landfill and human wastewater, biomass gasification and syngas not consumed by the production facility (sold or delivered off site) certified to meet fuel-grade ASTM, CGSB or other specifications accepted by the Alberta Climate Change Office
  • Electricity generated by a producer of these gas products who is a market participant in Alberta’s interconnected electric system, has a nominal capacity of at least 150 kilowatts and is not an approved micro-generator under the Micro-Generator Regulation
  • Heat production and waste heat recovery from production of gas products or electricity from those gas products
  • Wood pellets, other biomass pellets or biocarbon with a high heating value of at least 16.5 megajoules per kilogram certified to meet fuel product specifications and standards accepted by the Alberta Climate Change Office
  • Generation of electricity by combustion of biomass by a market participant in Alberta’s interconnected electric system, who has a nominal capacity of at least 150 kilowatts and is not an approved micro-generator under the Micro-Generator Regulation
  • Heat produced by combustion of biomass, including cogeneration; stand-alone heat production systems must be capable of producing a minimum of 50,000 Gigajoules of heat per year

All bioenergy products receiving support must meet eligibility criteria such as:

  • accurate measurement
  • commercial standards
  • distribution/consumption in Alberta
  • greenhouse gas emissions reductions
  • use of eligible feedstocks

Bioenergy products consumed by the facility may qualify for support, with the exception of gas products (biogas, syngas, etc.) which must be sold or delivered to a third party to qualify for support.

If bioenergy products are produced in succession at the same facility, only one product may receive support.

Electricity produced from biomass qualifies for support whether the electricity is consumed on site or sent to the grid.

What is the GHG requirement of the program?

Funding will only support production that leads to greenhouse gas reductions when compared to a conventional alternative. Verification of a reduction will be made through a life cycle emissions assessment.

  • Applicants will only be able to claim credits for the volumes that are produced in Alberta
  • Successful applicants will need to provide a life cycle assessment of their Bioenergy Production, verified by a qualified third party acceptable to the Province with their initial Quarterly Invoice and all Annual Reports

What are the producer credit rates under the program?

Support for qualifying production is based on the following rates, subject to the maximum levels of support:

PRODUCER CREDIT RATES
Liquid Biofuels First 150 million litres In excess of 150 million litres
First Generation Ethanol or other fuel alcohol $0.10 per litre $0.06 per litre
Second Generation Ethanol or other fuel alcohol $0.14 per litre $0.09 per litre
Renewable Diesel,
Biodiesel or Pyrolysis Oil
$0.13 per litre $0.09 per litre
Syngas, Biogas, Green Natural Gas and Electricity or Heat
Electricity First 26,280 Megawatt hours
$0.06 per kilowatt hour
In excess of 26,280 Megawatt hours
$0.017 per kilowatt hour
Sold Gas Products $2.00 per Gigajoule
Heat $1.00 per Gigajoule
Wood Pellets, Biomass Pellets, Biocarbon
$35.00 per tonne
Electricity and Heat from Combustion of Biomass
Electricity $0.02 per kilowatt hour
Heat $0.50 per Gigajoule

What is the application deadline and how are applications accepted?

The deadline to apply is January 26, 2017 by 4:30 p.m. MST. Any application received after the deadline or that are incomplete will be deemed ineligible and rejected.

Only online submissions (by email) will be accepted. Submit all questions and applications to:

Program Resources

See below for resources related to the BPP.

Fact Sheets

Application Documents

Annual Report

The following documents are to be completed for the verification of the calculation of eligible production.

Successful BPP Applicants

Quarterly Invoice Documents

Quarterly Progress Report Documents

The following documents are only for facilities which have not yet commenced production.

Life Cycle Emission Assessment and Verification Documents

Key Resources

Contact

Please submit all questions and applications to:

 

Page Information

Updated: May 12, 2017