A Red Deer company that plans to produce diesel fuel from a mixture of municipal waste and used motor oil said Thursday that it’s been approved for funding under the Alberta Bioenergy Producer Credit Program.
Blue Horizon Bio-Diesel Inc., which is a subsidiary of Blue Horizon Industries Inc., has purchased the Canadian rights to German technology for the fuel conversion process. It has a small demonstration plant, and wants to develop commercial-scale plants that would be located at municipal landfills — including Red Deer’s.
Blue Horizon president Don Allan said previously that the diesel produced could be used to help meet Alberta’s renewable fuels standard.
Blue Horizon said in a release on Thursday that it has received confirmation of an approximately $8 million grant under the Alberta Bioenergy Producer Credit Program.
Spread over four years, the grant would take the form of a 13 cent a litre subsidy, said the company.
“The performance of the company’s existing demonstration plant and a strong pipeline of opportunities have allowed us to demonstrate to the province that our technology is proven and ready for commercial delivery,” said Allan in the release.
“The funds from the grant will allow BH Bio-Diesel to implement its plan to produce renewable diesel on a commercial basis, and we look forward to working with the government to build the market leader in the waste-to-fuel industry.”
Blue Horizon’s process would use a ratio of about 75 per cent renewables and 25 per cent used oil, with the former including waste materials like plastics, paper, cardboard, sawdust and woodchips, and tires.
The mixture would be mixed with a catalyst and heated.