Ottawa puts $5M into Saskatchewan ethanol plant

Canada's minister of agriculture and agri-food announced that the government would put CDN$5 million into a planned ethanol facility in Unity, Saskatchewan.

The government investment is part of the federal ecoAgriculture Biofuels Capital, or ecoABC, initiative, first launched in April 2007 to support the construction or expansion of transportation biofuel production facilities.

"Canada's new government introduced this initiative to help Canada's biofuels industry seize better opportunities, remain at the forefront of biofuels production internationally, and to increase the production of cleaner fuels," said Minister Gerry Ritz.

The CDN$38 million plant, which is expected to produce 25 million liters of wheat-based ethanol per year and dried distillers grains, will be built by North West Terminal.

North West Terminal is a farmer-shareholder owned grain terminal east of Unity. In addition to the federal funds, the new plant has received a direct equity investment from 317 farmers totaling more than $12 million.

The facility is expected to use approximately 68,000 tonnes of wheat per year with about 95 percent of it coming from local suppliers.

Construction has already begun on the plant, and North West Terminal said it's scheduled to begin production in September 2008. The plant will be located adjacent to the company's inland grain terminal in Unity.

Minister Ritz said the project will help Canada meet its target of an average of 5 percent renewable fuel content in gasoline by 2010.

The ecoABC initiative is a $200 million, four year program.

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