Minnedosa ethanol plant receives $10.4 million in Government of Canada funding

07/06/05

This release is also available in French



MINNEDOSA, MANITOBA -- A new ethanol plant in Minnedosa will help Canada address climate change by increasing the supply of this cleaner, renewable fuel, the Honourable Reg Alcock, President of the Treasury Board and Minister responsible for the Canadian Wheat Board, announced today. Husky Oil Marketing Company has been allocated $10.4 million from the Government of Canada's Ethanol Expansion Program (EEP) to help build the plant. Minister Alcock made the announcement on behalf of the Honourable R. John Efford, Minister of Natural Resources Canada (NRCan), and the Honourable Andy Mitchell, Minister of Agriculture and Agri-Food.

"Ethanol is a growing industry, and this new plant will ensure that Manitoba strengthens its contribution to that growth," said Minister Alcock. "This project means new jobs in the Minnedosa area, new economic opportunities for farmers and will help Canada address climate change. I'm also proud that this is the second EEP partnership we've struck with Husky, which clearly shows the company's commitment to putting Canada among the world leaders in ethanol production and use."

Husky is proposing to build a new facility at the site of its existing plant in Minnedosa, which currently produces 10 million litres of ethanol annually and was built in 1981. The new facility will produce an additional 130 million litres of ethanol each year. Husky also received a Government of Canada contribution for a facility in Lloydminster, Saskatchewan, that will also produce 130 million litres of ethanol annually.

"Husky Energy is pleased to have been selected by Natural Resources Canada as eligible to receive funding for our proposed Minnedosa Ethanol Plant expansion, under Round Two of NRCan's Ethanol Expansion Program. The new Minnedosa plant will be a key component in Husky's plans to become Western Canada's largest producer of ethanol," said John C.S. Lau, President and Chief Executive Officer of Husky Energy Inc. "This initiative complements our 'Mother Nature's Fuel' marketing program and will provide ethanol to the refining industry to blend with gasoline to make cleaner fuels. The Government of Canada's Ethanol Expansion Program has proven to be a significant factor in developing the ethanol industry in Canada."

The Minnedosa 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 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.

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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