Bioenergy Producer Program

Notice:

The Bioenergy Producer Program (BPP) has been extended, with a revised scope, for two and a half years. The $63 million program will run from October 1, 2017 to March 31, 2020, and provide funding for the production of electricity and liquid biofuels.

Prospective applicants should take note of the eligibility criteria for the program extension. The initial application period will run from February 12 to 26, 2018.

Previous BPP Grant Holders:
Final payments will be released once the report has been received and reviewed by the Alberta Climate Change Office (ACCO). For relevant documentation for completing the Annual Report, please see the section "Legacy BPP - Grant Holder Information".

All questions about the BPP can be directed to:

About this Program

The Bioenergy Producer Program (BPP) has been extended from October 1, 2017 to March 31, 2020, with a limited scope to support liquid biofuel production and stand-alone bio-power production for two and a half years.

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

For a more detailed overview of the program’s configuration and operation, please see the Bioenergy Producer Program Outline under the Fact Sheets section.

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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 for a minimum of three consecutive months prior to their application being submitted.

Facilities that are regulated under Alberta’s Specified Gas Emitters Regulation (or its successor) or registered as offset projects are ineligible to receive funding, unless they held a previous BPP Grant Agreement.

Producers who participated in previous bioenergy programs (e.g. BPP or Bioenergy Producer Credit Program) and who have not satisfied the full conditions of their grant agreements (e.g. owing money or failure to achieve production requirements) will not be eligible to receive funding under the BPP.

  • However, if the producer resolves any outstanding issues from their previous agreement(s) before 4:30 PM MST of the first day of the application period they wish to apply for, they may 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 $63 million program budget that will span a 30-month period:

  • The first program period will grant $10 million to eligible producers and begin retroactively from October 1, 2017 and end on March 31, 2018
  • The second program period will grant $28 million to eligible producers and begin April 1, 2018 and end on March 31, 2019
  • The third program period will grant $25 million to eligible producers and begin retroactively from April 1, 2019 and end on March 31, 2020

Note: These amounts include program administration expenses.

Will there be another application period for the program?

Program Period 1 will be open only to previous BPP Grant Holders that meet the extension program eligibility criteria. Program Period 2 and 3 will be open to both previous BPP Grant Holders and new facilities.

The application period will be open from February 12, 2018 to February 26, 2018.

Prospective applicants that do not meet the eligibility criteria at the time of the application period may apply starting March 2018. However, they are required to submit the "Expression of Interest" package within the February application period in order for their future application to be considered valid.

New facilities that meet the eligibility criteria of the program will be permitted to submit an application within the first fourteen days of each month, from March 2018 to December 2019.

Applicants that are approved will be eligible for funding for the remaining 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 biodiesel, renewable diesel, pyrolysis oil, ethanol, dimethyl ether, 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; qualifying biofuels must be certified to meet fuel-grade ASTM or Canadian General Standards Board (CGSB) specifications
  • Electricity generated by a producer of biogas from a farm-based anaerobic digester (mainly using agricultural and animal farming residue) 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
  • Generation of electricity by combustion and gasification of woody biomass in a stand-alone facility by a market participant in Alberta’s interconnected electric system, who has a nominal capacity of at least 5 megawatts and is not an approved micro-generator under the Micro-Generator Regulation
    • Any facility where the primary purpose or revenue stream of the facility is not electricity generation from biomass, such as a pulp mill or a sawmill (including a pulp mill or sawmill that owns and operates an adjacent cogeneration facility), is not within the scope of funding
    • Electricity from co-firing biomass with coal is not considered an eligible production

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 placed in inventory or consumed by the facility do not qualify for support.

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 Emission Assessment.

  • Applicants will need to provide a Life Cycle Emission Assessment of their bioenergy production, verified by a qualified third party acceptable to the Province with their application package and all Annual Reports

What are the facility caps in the program?

The Alberta Climate Change Office will determine the level of support provided to all successful applicants in conjunction with the overall demand for funding. This may result in lower facility caps than what is listed below.

Type of Bioenergy Product Program Period 1 - Maximum Funding per Facility Program Period 2 - Maximum Funding per Facility Program Period 3 - Maximum Funding per Facility
Electricity from Combustion and Gasification of Biomass $2,000,000.00 $3,700,000.00 $3,700,000.00
Electricity from Combustion of Biogas $500,000.00 $1,000,000.00 $1,000,000.00
Liquid Biofuels $2,000,000.00 $3,700,000.00 $3,000,000.00

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 Generation Ethanol $0.10 per litre
Advanced Biofuel $0.14 per litre
Renewable Diesel, Biodiesel, Pyrolysis Oil $0.13 per litre
Electricity from Combustion and Gasification of Biomass*
Monthly Average Pool Price is equal or below $45 per MWh $25 per Megawatt hour
Monthly Average Pool Price is above $45 per Megawatt hour $70/MWh – Monthly Average Pool Price = Credit Rate ($/MWh)
Electricity from Combustion of Biogas $60.00 per Megawatt hour

*The ACCO will post the final credit rate for the Grant Holder to use in their invoice. See the Monthly Credit Rate section further down.

What is the application deadline and how are applications accepted?

The application process has changed from the previous BPP. Applicants that have been in production for three consecutive months, prior to February 2018 will be eligible to apply in the application period running from February 12 to 26, 2018.

Facilities that reach three consecutive months of production after February 2018 will be eligible to apply starting March 2018. For more details on the application process, see the guideline document under the Fact Sheets section.

All applications must be received no later than 4:30 PM MST on the application deadline date. 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.

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Fact Sheets

Application Documents

Life Cycle Emission Assessment Documents

Key Resources

Legacy BPP – Grant Holder Information

Legacy Bioenergy Producer Program Grant Holders are required to submit their Program Period 2 Annual Reports no later than December 31, 2017. Final Payments will be released once the report has been received and reviewed by the ACCO.

Annual Report

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

Life Cycle Emission Assessment and Verification Documents

Monthly Credit Rate

This credit rate must be used if holding a grant agreement for the production of electricity from the combustion or gasification of biomass.

Month Monthly average pool price of electricity*
($ per MWh)
BPP credit rate
($ per MWh)
October 2017 $20.45 $25
November 2017 $25.03 $25
December 2017 $21.99 $25

*Monthly average pool price is taken from the Alberta Electric System Operator’s "Pool Monthly Summary Report".

Contact

Please submit all questions and applications to:

 

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Updated: Jan 4, 2018