Canada awards $46 million to ethanol plants

By OGJ editors
HOUSTON, July 7 -- Canada has allocated $46 million (Can.) to five companies to build or expand ethanol plants across Canada in a second round of funding under its Ethanol Expansion Program (EEP). The awards range from $7.3 million to $15 million.

Building new plants will be Commercial Alcohols Inc. in Windsor, Ont., Husky Oil Marketing Co. in Minnedosa, Man., and Integrated Grain Processors Cooperative Inc. in Brantford, Ont.

In addition, Permolex Ltd. will expand its facility in Red Deer, Alta., and Power Stream Energy Services Inc. will convert a recently closed starch plant in Collingwood, Ont.

With this funding, along with $72 million previously allocated to six projects under the program's first round and private investments from involved companies, about $1 billion is being invested in Canadian ethanol production expansion.

The EEP is expected to result in production of 1.2 billion l./year of fuel ethanol by yearend 2007, bringing Canadian production to 1.4 billion l./year, said Agriculture and Agri-Food Minister Andy Mitchell.

Canada plans to have 35% of all gasoline in Canada contain 10% ethanol by 2010.

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