Posted Jan. 21, 2010

Sustainable Development Technology Canada (SDTC) has announced that it will pass out $58 million in funding to 16 clean technology companies, including up to $13 million to proposed cellulosic ethanol plant projects.

"These numbers are still subject to portfolio adjustments," said a SDTC spokesperson.

The announcement came not long after Environment Canada ordered a study of the environmental impacts of biofuel production. The study was ordered, in part, due to recent studies in the United States, which suggest that liquid biofuels aren't always better environmentally than petroleum-based fuels.

Still, an Environment Canada spokesperson previously told Ethanol Producer Magazine that commissioning the study doesn't mean the Canadian government is assuming any harmful environmental affects, nor does it show a change in the country's commitment to biofuels. That sentiment certainly seems supported by SDTC's recent support of cellulosic ethanol projects.

The 16 projects awarded funding represent many of the country's main economic sectors, according to a press release. That includes everything from the energy sector and transportation to waste management.

"Our government continues to help bring innovative renewable energy technologies from idea to marketplace," said Lisa Raitt, minister of natural resources, in a press release. "Investing in these projects will stimulate the growth of a domestic clean energy industry, create high-quality jobs for Canadians and help protect our environment."

Awarded up to $7.5 million was a 12 MMly (3.17 MMgy) pilot plant proposed by Ferme Olivier Lépine Inc., a St. Alexis, Quebec, company. The company's partners were listed as Ferme Olivier Lépine Inc., Ferme Sébastien Lépine Inc. and Coopérative Profid'Or. The consortium, according to the SDTC Web page, has developed a "unique integration of processes from other industries to produce ethanol and important co-products from otherwise unused agricultural waste materials."

The second project was a 2 MMly cellulosic ethanol pilot plant proposed by SunOpta BioProcess Inc., Brampton, Ontario, that was awarded up to $5.5 million. The company has developed a process to produce ethanol from wood chips. A byproduct of the process is food-grade xylitol. Listed as partners with SunOpta were Xylitol Canada and Emerald Forest Sugars Inc. In the product description at the SDTC Web page, it said that the process decreases water use by 75 percent from corn ethanol.

"Through SDTC, the Government of Canada is helping cleantech companies convert their new technologies into market-ready products," said SDTC chairman Juergen Puetter. "When these companies bring their technologies to businesses and consumers, they create jobs, provide Canada a technological edge and contribute to an overall reduction in Canada's greenhouse gas emissions".

To-date, the new investments put SDTC's portfolio value at more than $1.5 billion, according to the press release. The trademarked "Tech Fund" has completed fifteen funding rounds, which awarded $464 million to a total of 183 clean technology projects.

SDCT's investments have leveraged $900 million in additional private sector investment. Plus, they are expected to reduce greenhouse gas emissions the equivalent of taking up to 1.5 million homes off the grid.