Application status: closed

Overview

The Bioenergy Producer Program (BPP) was extended, with a revised scope, ending March 31, 2020. The program 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

The BPP provides grants to dedicated biofuel-producing facilities. These include:

  • liquid biofuels such as biodiesel, ethanol and pyrolysis oil
  • biogas electricity production from farm-based anaerobic digesters
  • electricity produced from wood byproducts (biomass) – stand-alone facility only

For more information, read the Bioenergy Producer Program Outline.

Legislation

Funding

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.

Program budget

The BPP has a $63 million program budget that will span a 30-month period:

  • Program Period 1 (October 1, 2017 to March 31, 2018): $10 million
  • Program Period 2 (April 1, 2018 to March 31, 2019): $28 million
  • Program Period 3 (April 1, 2019 to March 31, 2020): $25 million

Note: These amounts include program administration expenses.

Facility caps

Table 1. Maximum funding per facility

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

Producer credit rate

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

Table 2. Producer credit rate

Liquid biofuels
First generation ethanol $0.10 per litre
Advanced biofuel (PDF, 28 KB) $0.14 per litre
Renewable diesel, biodiesel, pyrolysis oil $0.13 per litre
Electricity from combustion and gasification of biomass*
Monthly average pool price equal or below $45.00 per megawatt hour (MWh) $25.00 per MWh
Monthly average pool price above $45.00 per MWh $70.00 per MWh – Monthly Average Pool Price = Credit Rate
Electricity from combustion of biogas
$60.00 per MWh

*The Alberta Climate Change Office will post the final credit rate for the grant holder to use in their invoice. See the monthly credit rate section below.

Monthly credit rate

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

Table 3. Monthly credit rate for electricity from biomass combustion and gasification

Month Monthly average pool price
of electricity* ($ per MWh)
BPP credit rate
($ per MWh)
October 2017 $20.45 $25.00
November 2017 $25.03 $25.00
December 2017 $21.99 $25.00
January 2018 $40.83 $25.00
February 2018 $31.32 $25.00
March 2018 $32.27 $25.00
April 2018 $40.55 $25.00
May 2018 $63.77 $6.23
June 2018 $63.44 $6.56
July 2018 $58.45 $11.55
August 2018 $68.80 $1.20
September 2018 $36.11 $25.00
October 2018 $63.48 $6.52
November 2018 $59.21 $10.79
December 2018 $43.99 $25.00
January 2019 $37.83 $25.00
February 2019 $109.36 $0.00
March 2019 $65.04 $4.96
April 2019 $40.80 $25.00
May 2019 $74.78 $0.00
June 2019 $53.52 $16.48
July 2019 $40.99 $25.00
August 2019 $45.40 $24.60
September 2019 $54.45 $15.55
October 2019 $41.86 $25.00
November 2019 $56.15 $13.85
December 2019 $43.19 $25.00
January 2020 $120.67 $00.00
February 2020 $36.33 $25.00
March 2020 $42.16 $25.00

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

Eligibility

For more details about eligibility requirements, see:

The BPP is intended for Alberta bioenergy producers. The application submission period for the BPP officially ended on February 26, 2018 and no new applications are being accepted.

Facilities with accepted EOIs had to submit their application by December 14, 2019.

In order to be eligible for funding under the program, facilities with accepted EOIs must have produced bioenergy for a minimum of 3 consecutive months prior to their application being submitted.

Applicants with accepted EOIs that are approved following submission of formal applications will be eligible for funding for the remaining duration of the BPP, subject to the terms and conditions of the grant agreement.

Reporting

Quarterly invoice

Grant recipients were required to submit quarterly invoices for the program.

Period report

Grant recipients were required to submit the Period Report for the program on or before the due dates, along with the Third-party Audit Report and a stamped or sealed engineer’s letter verifying production and calibration certificates of measurement equipment.

Third-party audit report

Life cycle emission verification and 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 Period Reports.

A third-party Lifecycle Emission Verification Report is a mandatory item with Period Reports for Program Periods 2 and 3.

Grant recipients

Table 6. Grant recipients

Recipient Bioenergy product Grant allocated
(October 2017 to March 2020)
Dapp Power LP Electricity $6,925,000.00
Whitecourt Power LP Electricity $9,171,750.00
Lethbridge Biogas LP Electricity $2,499,999.00
Grow the Power Circle Ltd. Electricity $675,000.00
Permolex Ltd. Liquid biofuel $8,200,000.00
ADM Agri-Industries Ltd. Liquid biofuel $8,699,999.88

Resources

Contact

Connect with the BPP:
Email: [email protected]

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