Web exclusive posted July 29, 2008 at 11:28 a.m. CST
Calgary, Alberta-based
Suncor Energy has received a $25 million investment from the government of Canada for its St. Clair corn-based ethanol facility expansion project. The announcement was made on July 18 by Guy Lauzon, parliamentary secretary to the Minister of Agriculture and Agri-Food, on behalf of Gerry Ritz, Minister of Agriculture.
"This investment will create new jobs in Lambton County and St. Clair Township while also giving Canadian families a green alternative at the gas pump," Lauzon said. "Our government's biofuel strategy is delivering real results for our farm families, our communities and our environment."
The 200 million liters per year (52.8 MMgy) Suncor St. Clair ethanol plant, located in Sarnia, Ontario, will be the largest ethanol plant in Canada. A project to double its capacity to 400 MMly (105 MMgy) is expected to be completed in September 2009. To date, the facility has also received $12.5 million in equity investment from farmers. The project is anticipated to create new opportunities for farmers who are growing the corn feedstock for the plant and bring new opportunities for those who are involved as financial and business partners in the plant's expansion.
In addition to ethanol, Suncor's plant will produce dried distillers grains with solubles (DDGS) for livestock feed as well as carbon dioxide to be commercially marketed. The St. Clair facility has been producing ethanol since 2006.
Federal funding for the project will flow through its $200 million, four-year ecoABC Initiative, which offers conditionally repayable contributions to build or expand transportation biofuels production facilities. Farmer investment in the projects and the use of farm feedstock to produce biofuels are among the conditions for ecoABC funding.
Other ecoABC-funded projects include IGPC Ethanol in Aylmer, Ontario, North West Terminal at Unity, Saskatchewan, and Western Biodiesel at Aldersyde, Alberta.
"We are very grateful for the federal government's support for our project," Suncor Energy Products Inc. General Manager Gord Pinard said. "Programs such as ecoABC are instrumental in helping expand Canada's biofuels production capacity and integrating renewable fuels into our transportation energy supply chains."
Suncor is also highly involved in other renewable energy projects such as wind farm operations in Saskatchewan, Ontario, and Alberta. It also explores for and produces natural gas in western Canada, as well as extracting and upgrading oil sands at Fort McMurray, Alberta.