The Alberta government is investing $4.7 million in a Lethbridge facility working to turn farm waste into renewable fuel.

Coming from the Technology Innovation and Emissions Reduction (TIER) fund, the province’s investment will help the $28.6-million facility turn agricultural waste, inedible fat and used cooking oil into biodiesel fuel and glycerine, according to a news release from the provincial government Tuesday.

Environment and Parks Minister Jason Nixon joined several other speakers to announce the funding in Lethbridge.

“Alberta is quickly becoming a hub for pioneering projects like this one, that process waste to create more value for key industries like livestock and farming. I look forward to seeing this facility begin its operations in the fall,” said Nixon.

The facility is expected to purchase $375 million worth of feedstock from local farmers over the next five years, supporting 130 jobs in the area and generating $500 million in revenues.

news release issued after Nixon’s announcement said the biodiesel created at the southern Alberta facility will have a little as one-third the “carbon intensity” of petroleum diesel.

Compared to diesel, biodiesel has the potential to reduce greenhouse gas emissions by more than 80 per cent on a life-cycle basis, according to Natural Resources Canada.

A news release issued after Nixon’s announcement said the biodiesel created at the southern Alberta facility will have a little as one-third the “carbon intensity” of petroleum diesel.

Compared to diesel, biodiesel has the potential to reduce greenhouse gas emissions by more than 80 per cent on a life-cycle basis, according to Natural Resources Canada.

“Canary Biofuels is Alberta’s first Generation 2 biodiesel producer with its flagship facility in Lethbridge,” Canary Biofuels CEO George Wadsworth said in the provincial news release. “Canary is excited to lead the path in Alberta in abating emissions through sustainable waste-based biodiesel production that supports the energy and agriculture industries in Alberta and the Prairies.”

The province said the produced biodiesel has been pre-sold to a leading Canadian supplier. The news release did not say who the supplier is.

The funding is part of a larger $750-million provincial commitment to reducing emissions in Alberta.