The expansion new cold press oilseed crushing plant in Lethbridge is an example of what projects qualify for the Agri-Processing Investment Tax Credit.
Canary Biofuels is investing $18 million into the expansion which is anticipated to process 200,000 tonnes of seed per year, up from the 50,000 a year that is currently processed, along with other products including canola oil and meal. According to the provincial government the project is expected to create 40 permanent jobs and 25 temporary jobs in the region.
MLA for Lethbridge-East Nathan Neudorf, explains the investment tax credit is an example of moves being made at a provincial level to strengthen the agriculture industry. According to Neudorf supporting businesses such as Canary Biofuels which has received conditional approval for roughly $1.7 million for the project, will support the creation of jobs and help drive the economy. These statements were echoed by the Minister of Agriculture and Irrigation R.J. Sigurdson, who describes the province as being “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,” Sigurdson says.
The APITC includes a 12 per cent non-refundable, non-transferable tax credit for an investment of $10 million or more to build or expand a value-added agri-processing facility in the process. CEO of Banary Biofuels George Wadsworth says having the tax credit is an important support for smaller businesses in centres such as Calgary who are looking 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,” Wadsworth says.
The APITC was announced in February of 2023 and according to the province as of February 11th of this year, 16 corporations have applied with projects worth an estimated $1.63 billion in new investment for the provinces’ agri-processing sector, of those 16 applications 10 have received conditional approval through the program.
The Canary Biofuel expansion is anticipated to be completed in 2026.
