Biofuels caravan rolling along

Federal funds continue to flow to an array of biofuel projects across the country, mainly from Natural Resources Canada’s ecoENERGY program in a determined bid to encourage production of renewable alternatives to gasoline and diesel. Compared with gasoline, grain-based ethanol can reduce greenhouse gas emissions by up to 40 per cent on a life-cycle basis and the difference can be as much as 60 per cent for biodiesel.

Ottawa has committed $1.5 billion over nine years for development of the renewable fuels industry in Canada.  The most recent recipient of ecoENERGY support is Husky Energy, which will receive up to $72.8 million for its ethanol plant in Minnedosa, Manitoba. Other announcements this year include up to $23.2 million for Permolex Ltd. of Red Deer, Alberta, up to $19.9 million for Western Biodiesel in High River, Alberta, and up to $72.4 million for Biox Canada in Hamilton, Ontario.

However, the main ecoENERGY beneficiary is GreenField Ethanol, Canada’s main producer of ethanol. It has federal commitments of up to $212.3 million for facilities in Ontario, including up to $117.5 million in Johnstown, up to $72.8 million in Chatham, and up to $14 million in Tiverton. The Johnstown project also is receiving $7.3 million in repayable funding from ecoAgriculture Biofuels Capital, a $200-million program run by Agriculture & Agri-Food Canada.

Sustainable Development Technology Canada (SDTC) is also involved in encouraging ethanol production through its NextGen Biofuels Fund. An SDTC grant of up to $1.82 million to Lignol Energy Corp. of Burnaby, B.C., will support development of an industrial-scale plant for production of cellulosic ethanol and other renewables.