Brantford ethanol plant receives $11.9 million in Government of Canada funding


This release is also available in French

BRANTFORD, ONTARIO -- A new ethanol plant in Brantford will help Canada address climate change, Lloyd St. Amand, Member of Parliament for Brant, announced today. The Government of Canada is allocating $11.9 million from its Ethanol Expansion Program (EEP) to Integrated Grain Processors Co-Operative Inc. (IGPC) to build a plant to produce this cleaner, renewable fuel. Mr. St. Amand made the announcement on behalf of the Government of Canada and was joined by the Honourable Andy Mitchell, Minister of Agriculture and Agri-Food.

"I know this is a proud day for IGPC members who came together only three years ago with the goal of building an ethanol plant," said Mr. St. Amand. "By championing this project, IGPC clearly shows why the EEP has attracted the interest of so many Canadians. Producing ethanol will create new markets and economic opportunities for the farming community, while helping Canada address climate change." The new facility planned by IGPC, a cooperative of more than 500 farmers, business people and other community members, will produce 119 million litres of ethanol each year.

IGPC Chair Tom Cox underscored the significance of the federal assistance. "Ottawa's investment of nearly $12 million enables us to move quickly towards finalizing our financing arrangements. This generous support from the Ethanol Expansion Program provides our lenders with the added reassurance they need to put together the details of our debt financing."

The Brantford plant is one of five successful proposals that has been allocated a total of approximately $46 million in funding through the second round of the EEP, which is administered by Natural Resources Canada and Agriculture and Agri-Food Canada. These projects, in addition to six projects that were allocated $72 million in the first round of the EEP, will increase Canadian production to 1.4 billion litres per year. This is enough ethanol to achieve, two years ahead of schedule, the Government's target of having a blend of 10-percent ethanol in 35 percent of all gasoline in Canada by 2010. Additionally, the $118 million in funding the Government of Canada has allocated under the EEP will result in close to a $1-billion investment from the companies involved in the projects.

In addition, the three projects in Ontario, combined with the projects that were allocated contributions under Round 1 of the EEP, are expected to increase ethanol production in the province to almost 800 million litres per year. This is enough capacity to meet the requirement, announced by the Government of Ontario, that gasoline sold in the province contain an average of five-percent ethanol by 2007.

The EEP is one part of the Government of Canada's renewable-fuels strategy that also includes support for research and development, exemptions from federal fuel excise taxes and consumer awareness activities. The original funding for this program was provided in Budget 2003 and is part of the Government of Canada's overall commitment to climate change action. The Government of Canada's approach to climate change is focused on making the right choices for Canada. This will ensure that the actions taken contribute to long-term goals of building a sustainable economy for the 21st century, a healthier environment and strong communities, while affirming Canada's place in the world.

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