Windsor ethanol plant receives $15 million in Government of Canada funding

07/06/05

This release is also available in French



WINDSOR, ONTARIO -- A new ethanol production plant in Windsor will help Canada address climate change by increasing the supply of this cleaner, renewable fuel, the Honourable Joe Fontana, Minister of Labour and Housing, announced today. Commercial Alcohols Inc. has been allocated $15 million from the Government of Canada's Ethanol Expansion Program (EEP) to help build the new plant. Minister Fontana 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.

"Windsor is certainly doing its part to help Canada address climate change," said Minister Fontana, who is also Chair of the Southwestern Ontario Liberal Caucus. "Not only have our auto makers agreed to reduce emissions from vehicles they sell, now this new ethanol plant will give drivers a cleaner option when it comes to fueling vehicles. I congratulate Commercial Alcohols for providing the leadership we need to put Canada among the world leaders in ethanol production and use."

Commercial Alcohols will build a new facility that will produce about 199 million litres of ethanol annually. Commercial Alcohols previously received a Government of Canada contribution for a facility in Varennes, Quebec, that will, upon completion, be capable of converting 12 million bushels of corn into more than 120 million litres of fuel-grade ethanol a year.

"The Windsor project will be a world-class, state-of-the-art facility employing a thermal oxidizer that will eliminate any odours from the plant," said Bliss Baker, Vice President of Commercial Alcohols. "We are thrilled with our new technology and look forward to seeing this plant being built."

The Windsor plant is one of five successful proposals that are being 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.

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.

Source: Eurekalert & others

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