Alberta boosts cash for bioenergy producers

Alberta is increasing the cash incentives for producers of ethanol, methane gas and electricity generated from waste, with an eye toward becoming Canada's bioenergy leader.

The $239-million program, announced Tuesday, offers a credit of 14 cents a litre to producers of bioenergy products, while those generating electricity from biofuels will get six cents a kilowatt hour.

About $30 million of the total will be spent expanding Alberta's production capacity and improving the distribution system.

The new program replaces the existing ethanol fuel tax exemption in Alberta.

Agriculture Minister Doug Horner said the goal of the new program is to encourage manufacturers to boost the production of all biofuels.The new money will also help create a greater awareness of renewable energy products and make them more easily available to consumers, he said.