The province’s inviting and tax-friendly business environment, free and fast-flowing economy and abundant agricultural resources make it one of the best places to do business in North America. In addition, the Agri-Processing Investment Tax Credit (APITC), launched in spring 2023, helps to attract investment that will further diversify Alberta’s agriculture industry.
The most recent example of a company choosing to grow its business in Alberta is Canary Biofuels, which has qualified for the APITC by constructing a cold press oilseed crushing plant in Lethbridge. Canary Biofuels is investing $18 million in the project that is expected to create 40 permanent and 25 temporary jobs, process 200,000 tonnes of seed per year and produce value-added products such as canola oil and meal. Through the Agri-Processing Investment Tax Credit, Alberta’s government has granted Canary Biofuels conditional approval for a tax credit estimated at $1.7 million.
“Alberta is an agriculture powerhouse with a thriving food and bioprocessing sector. The Agri-Processing Investment Tax Credit has made the province a preferred destination for large-scale agri-processing investments and encourages companies like Canary Biofuels to invest in our province, create jobs and diversify the economy.”
“The Agri-Processing Investment Tax Credit is a prime example of how our government is strengthening our agriculture industry by supporting businesses, like Canary Biofuels, to grow, create jobs, and continue to help drive our economy forward.”
The APITC provides a 12 per cent non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bioprocessors that add value to commodities like grains or meat or turn agricultural by-products into new consumer or industrial goods.
Canary Biofuels is an agricultural processor that produces feedstock for the renewable fuels industry as well as high-value products for the livestock feed industry. It is headquartered in Calgary with a process facility in Lethbridge.
“Canary would like to thank the Government of Alberta for its support. Programs like the Agri-Processing Investment Tax Credit are essential for smaller companies like Canary to access capital. This project will support jobs and indirectly support thousands of Albertan and Canadian oilseed farmers by providing more localized offtake for their crops, including off-spec materials.”
Alberta’s agri-processing sector is the second-largest manufacturing industry in the province and the biofuel industry plays an important role in the sector, generating millions in annual economic impact and creating thousands of jobs. Alberta continues to be an attractive place for agricultural investment due to its agricultural resources, one of the lowest tax rates in North America, a business-friendly environment, and a robust transportation network to connect with international markets.
Quick facts
- On Feb. 7, 2023, government announced the introduction of the Agri-Processing Investment Tax Credit through Budget 2023.
- On Apr. 24, 2023, Alberta’s Agri-Processing Investment Tax Credit began accepting applications from agri-processing corporations for conditional approval.
- As of Feb. 11, 2025, 16 corporations had applied to the program for projects worth about $1.63 billion in new investment in Alberta’s agri-processing sector.
- So far, 10 corporations have received conditional approval under the program. Each one must submit progress reports on their project, then apply for a tax credit certificate when the project is complete.
- Canary Biofuel’s crush process incorporates a proprietary cold press design that allows the processing of all varieties and qualities of seed while producing a super degummed quality oil suitable for animal feed, renewable diesel and renewable aviation biofuels. In addition, the non-solvent process produces a high-value animal feed ingredient.
- The current crush plant in Lethbridge has been operating at 50,000 MT/year and has just completed the first phase of expansion at 80,000 MT/Y with following expansion phases of 120,000 and finally 200,000 MT/Y to be completed sometime in 2026.
- Canary Biofuel currently employs about 25 people in Canada and at full expansion it is expected they will employ more than 40.
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