Alberta’s Agriculture and Irrigation Minister, RJ Sigurdson, announced today a significant tax credit aimed at stimulating investment and innovation in the province’s bioprocessing industry. The announcement was made at Imperial’s Strathcona Refinery, celebrating its 75th year of operation and unveiling plans for Canada’s largest renewable diesel facility.
Minister Sigurdson commended the Strathcona Refinery’s long-standing contribution to Alberta’s economy and emphasized the importance of supporting industry leaders like Imperial in their pursuit of responsible energy resource development. “We understand global companies like yours have many options for business expansion,” said Sigurdson. “That’s why we are ensuring Alberta offers a welcoming, business-friendly climate.”
To bolster Alberta’s competitive edge, the province introduced the Agriculture Processing Investment Tax Credit in spring 2023. This tax credit aims to drive innovation and growth in the province’s agri-food and bioprocessing sectors, complementing Alberta’s existing competitive business and tax advantages.
Imperial’s $720 million investment in a cutting-edge renewable diesel project has qualified for this tax credit, marking a significant milestone for the province’s bioprocessing industry. The facility, set to be operational next year, will transform canola and other seed oils into renewable diesel with lower emissions than conventional fuels.
“This project has multiple benefits for Albertans,” said Minister Sigurdson. “It creates about 600 direct construction jobs and offers additional employment opportunities once operational.” Furthermore, Imperial’s collaboration with canola processors is expected to have invaluable economic spin-offs for Alberta’s oilseed sector.
Sher Evers, Imperial’s Senior Vice President of Sustainability, highlighted the collaborative nature of the project, involving local companies, indigenous businesses, and larger organizations. “When the facility starts up, Imperial will begin purchasing large volumes of plant oils, creating a new end-use stream for the agriculture industry and farmers across western Canada,” said Evers.
Chris Verv, Executive Director of the Canadian Oilseed Processors Association (COPA), emphasized the project’s significance for Alberta’s canola industry. “This facility represents demand for canola seed that could be as large as two and a half million metric tons per year,” said Verv. “It’s a game-changer for our industry and a win-win for all parties involved.”
Looking ahead, Minister Sigurdson expressed excitement about continuing to work with Imperial and invited other agri-food and bioprocessing companies to explore Alberta’s tax credit program. “With incentives like the AGR tax credit, our government is supporting Alberta producers and keeping our province at the forefront of innovation,” concluded Sigurdson.
The announcement underscores Alberta’s commitment to fostering a sustainable and prosperous future by aligning agriculture and energy sectors in a transformative collaboration. As the province embraces renewable energy solutions, initiatives like these are crucial steps toward a cleaner and more resilient economy.