Canada gives Suncor preliminary approval for ethanol facility funding

By OGJ editors

HOUSTON, Feb. 16 -- The Canadian government, under its Natural Resources Canada ethanol expansion program, has given preliminary approval to fund $22 million toward construction of a $120 million ethanol production facility to be built at Sarnia, Ont. by Suncor Energy Products Inc., a wholly owned unit of Suncor Energy Inc., Calgary

The plant would be capable of producing more than 200 million l./year of ethanol, which would be blended into Sunoco gasoline. Should the project receive final approvals, construction would begin by midyear and complete by mid-2006.

Meanwhile, planning, design, engineering, and stakeholder consultation will continue as Suncor and the federal government finalize terms of the agreement.

Sunoco, with gasoline containing 10% ethanol, is one of the few Canadian retailers and the only major gasoline retailer to sell ethanol-blend gasoline in Ontario.

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