JV ethanol plant in Manitoba contemplated

By OGJ editors

HOUSTON, Nov. 5 -- A cooperative of rural municipalities signed a letter of intent with a subsidiary of Outlook Resources Inc., Toronto, to jointly develop and build an ethanol plant in the Dauphin and Roblin region of Manitoba.

Outlook's Atlantol Industries Inc. said the proposed plant, estimated at $50 million (Can.), would be capable of producing 80 million l./year of fuel grade ethanol.

The Parkland Agricultural Resource Cooperative (PARC) represents 5,200 farms consisting of 2.5 million acres of producing farmland. The agreement provides PARC's members with the option to acquire up to a 25% interest in Atlantol.

PARC agreed to pay $50,000 for an engineering feasibility study to be prepared by Dillon Consulting Ltd. Outlook, and PARC await the results of the engineering feasibility study before proceeding to the next stage.

Once the engineering feasibility study is completed, PARC can obtain its stakeholder's position by providing an additional $2.45 million for plant development and construction.

The agreement hinges upon Atlantol arranging financing to cover 25% of the project costs and obtaining a binding commitment for project financing equal to 70% of the project costs.

Related Articles

US gas reserve growth in 2013 was robust, AGA estimates

04/17/2014 US natural gas producers added more than 35 tcf of reserves in 2013, the American Gas Association said in its latest annual preliminary estimate ba...

CANADA Briefs

04/16/2014

Energy reform could unlock Mexico's shale resource potential

04/16/2014 The oil and gas industry is watching with great interest as energy reforms unfold in Mexico. The country has taken the first steps toward opening i...

Old basins, new ideas

04/14/2014 The accepted paradigms in today's exploration industry seem obvious yet in their origins were often difficult to understand. Historically, new geol...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected