Should the Alberta government be subsidizing ethanol plants?
The Alberta government has spent tens of millions of taxpayer’s dollars subsidizing bio-mass ethanol plant projects. As a business model, bio-mass ethanol plants are a prime example of corporate welfare that has so far proven to be uneconomical. Most every bio-mass ethanol plant in operation relies heavily on perpetual taxpayer subsidies in one form or another. Now Florida based Dominion Energy Services LLC is proposing to build an ethanol plant in Innisfail, and Aspen Bio-Energy Corp is proposing to build an ethanol plant in Rimbey. What makes them different? Can they change the current model and succeed without continuous government subsidies? To arrive at an answer it helps to understand how the industry currently operates today. As major investors in ethanol plants, British Petroleum (BP) and Agri-business conglomerates Archer Daniels Midland (ADM) and Cargill are skilled at obtaining taxpayer subsidies to facilitate structured deals designed to eliminate or reduce their risk in bi
