Suncor starts up Canada's largest ethanol plant

August 1, 2006

One of Canada's largest petroleum companies is diversifying its fuel supply along with vertically integrating its ethanol-blended gasoline. Suncor Energy Products Inc. announced in late June that the commissioning and start-up of its St. Clair Ethanol Plant in Sarnia, Ontario, was ready to commence. Construction of the $120 million (US$107 million) facility was nearing completion, and corn grinding was expected the week of June 26.

"We have invested months of planning to ensure a smooth start-up operation," said Andre Boucher, general manager for the St. Clair Ethanol Plant. "Our team is ready to begin the safe production of ethanol."

Sarnia is located on the southern tip of Lake Huron, approximately 70 miles northeast of Detroit. Suncor spokesman Jason Vaillant said that despite such close proximity to the United States, Suncor's ethanol production will primarily be focused on meeting the company's and the province's needs.

The plant, which is the largest in Canada, is expected to produce approximately 200 million liters (53 MMgy) of ethanol annually. "[Construction] has gone very well," Vaillant said. "We were very fortunate with the weather this winter."

Suncor has blended ethanol into its Sunoco-branded gasoline since 1996. Vaillant said a major impetus for building the facility was the federal government's Ethanol Expansion Program, which contributed $22 million (US$19.6 million) toward construction of the plant. Ontario's own 5 percent ethanol requirement takes effect January 2007. These two factors led to Suncor developing its own ethanol plant. "We needed a steady blend of ethanol," Vaillant said. "Our options were to buy from a third party or produce it ourselves."

The plant is expected to use 20 million bushels of corn, approximately 10 percent of the province's annual corn crop. "We obviously need a lot of corn," Vaillant said. "With such a large supply required, we'll be buying corn from throughout our region."

Along with grain procurement, London Agricultural Commodities will be marketing the facility's distillers dried grains. Vaillant said the DDGS would primarily be marketed locally, but would also be shipped to outlying markets.

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