Five Canadian Ethanol Plants Receive $46 M

Canada’s capacity to produce renewable transportation fuels is set for another substantial increase following the announcement of a second round of funding under the Government of Canada’s Ethanol Expansion Program (EEP). The Government of Canada has allocated a further $46 million for the construction or expansion of five ethanol plants across Canada.

The results of the competitive process were announced by Agriculture and Agri-Food Minister Andy Mitchell, on behalf of the Government of Canada. The following companies are being allocated contributions under Round 2 of the EEP: – Commercial Alcohols Inc. – $15 million for a new plant in Windsor,Ontario; – Husky Oil Marketing Company – $10.4 million to build a plant in Minnedosa, Manitoba; – Integrated Grain Processors Co-Operative Inc. – $11.9 million for a new plant in Brantford, Ontario; – Permolex Ltd.- $1.1 million to expand its existing facility in Red Deer, Alberta. – Power Stream Energy Services Inc.- $7.3 million to convert a recently closed starch plant in Collingwood, Ontario. These contributions are in addition to $72 million that was previously allocated to six other projects under the first round of the Ethanol Expansion Program. “The interest in this program is a sign of the ethanol industry’s growth and potential in Canada,” said Agriculture and Agri-Food Minister Andy Mitchell. “This is good news for the agricultural community, as it creates a new market for Canadian farmers.” Minister Mitchell noted that projects supported under both rounds of the Ethanol Expansion Program expect to be producing a total of about 1.2 billion liters of fuel ethanol per year by the end of 2007. This would bring Canadian production to approximately 1.4 billion liters per year, seven times what it was prior to the launch of the program, and enough to meet the Government of Canada’s climate change target for ethanol production two years ahead of schedule. This target is to have 35 percent of all gasoline in Canada contain a blend of 10-percent ethanol by 2010. Additionally, the $118 million in funding the Government of Canada has allocated under the EEP will result in close to a $1-billion investment from the companies involved in the projects. The three projects in Ontario, combined with the projects that were allocated contributions under Round 1 of the EEP, are expected to increase ethanol production in the province to almost 800 million liters per year. This is enough capacity to meet the requirement, announced by the Government of Ontario, that gasoline sold in the province contain an average of five-percent ethanol by 2007.
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