Canadian gov't invests in Alberta-based Kyoto Fuels facility

The government of Canada is investing in its biodiesel industry. On Dec. 21, Jim Hillyer, Member of Parliament for Lethbridge, announced that Natural Resources Canada would make a six-year, $31.14 million investment in Kyoto Fuels Corp. through its ecoENERGY for Biofuels program. Following Hillyer’s announcement, attendees at the event were given a tour of the biodiesel plant.

Lethbridge, Alberta-based Kyoto Fuels plans to produce 66 million liters (17.44 million gallons) of biodiesel annually. The plant will take in several feedstocks, including vegetable oils, cooking oil and animal fat. According to information released by Natural Resources Canada, the plant intends to sell its fuel into markets in western Canada and the northwest portion of the U.S.

"Kyoto Fuels looks forward to providing quality renewable fuels through the ecoENERGY for Biofuels program, which represents a vital aspect of our ability to participate in this evolving sector of Canada's economy," said Kelsey Prenevost, president and CEO of Kyoto Fuels. "In addition to employing 20 well-qualified technicians, other industries such as transportation and distribution will benefit from our production."

The ecoENERGY for Biofuels program aims to support the production of alternative fuels in Canada, while encouraging the development of a domestic biofuels industry. A recent audit of the program published by Natural Resources Canada noted that the program provides operating incentives based on production or sales levels to companies that produce alternative fuels that can replace gasoline or diesel. Approximately $1.438 billion has been allocated to the program, which first kicked off in 2008. Overall, the initiative aims to support the development of 2 billion liters of renewable alternatives for gasoline and 500 million liters of renewable alternatives for diesel. The program sunsets in 2017.

 "Our government is working to advance clean energy solutions and reduce greenhouse gas emissions through our ecoENERGY for Biofuels program," Hillyer said. "By investing in projects like this, we are helping to sustain local jobs and create economic opportunities while maintaining a healthier environment for all Canadians."