Red Deer ethanol plant receives $1.1 million in Government of Canada funding


This release is also available in French

RED DEER, ALBERTA -- The expansion of an ethanol production plant in Red Deer will help Canada address climate change by increasing the supply of this cleaner, renewable fuel, the Honourable Anne McLellan, Deputy Prime Minister and Minister of Public Safety and Emergency Preparedness, announced today. Permolex Ltd. has been allocated $1.1 million from the Government of Canada's Ethanol Expansion Program (EEP) for this project. Minister McLellan made the announcement on behalf of the Honourable R. John Efford, Minister of Natural Resources Canada, and the Honourable Andy Mitchell, Minister of Agriculture and Agri-Food.

"This is good news for the environment and good news for the economy," said Minister McLellan. "Permolex already knows the benefits of ethanol and the potential of this industry to grow. Expanding this plant will increase the supply of this renewable fuel, helping us respond to climate change and increasing employment opportunities in Red Deer at the same time."

Permolex Ltd. will expand an existing facility that currently produces 28 million litres of ethanol a year. The expanded plant will allow Permolex to produce an additional 12 million litres annually, for a total of 40 million litres a year.

"Permolex is delighted to have the support of Natural Resources Canada and Agriculture and Agri-Food Canada for the expansion of the ethanol portion of our facility," said Doug MacKenzie, CEO of Permolex Ltd. "The ethanol production from the expanded facility will assist in meeting national and provincial renewable fuel targets, and the plant grain supply will be drawn from the local community." Permolex is a unique grain processing facility that produces food-quality flour, vital wheat gluten as well as ethanol and high-protein animal food. The plant's design incorporates leading edge technologies and processes.

The Permolex 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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