Suncor Energy’s St. Clair ethanol plant doubling production, thanks to $25 million investment by Gov’t. of Canada.

Suncor Energy’s St. Clair Ethanol Plant is expanding to double its production of cleaner-burning, renewable energy, thanks to a $25 million investment by the Government of Canada.

The announcement was made today by Guy Lauzon, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, on behalf of Gerry Ritz, Minister of Agriculture.

“This investment will create new jobs in Lambton County and St. Clair Township while also giving Canadian families a green alternative at the gas pump,” said Parliamentary Secretary Lauzon. “Our government’s biofuel strategy is delivering real results for our farm families, our communities, and our environment.”

The Suncor St. Clair Ethanol Plant currently produces 200 million litres of ethanol per year and will be expanded to double its capacity to 400 million litres per year. The facility, which is expected to be completed in September 2009, has also received equity investment from farmers totaling $12.5 million. This project will create new opportunities for farmers who are growing the feedstock to produce the ethanol, as well new opportunities for those who are involved as financial and business partners in the plant’s expansion.

In addition to ethanol, the plant will produce dried distillers grains with solubles (DDGS), sources of high protein and high-energy feed for dairy and beef cows, hogs and poultry, as well as carbon dioxide, which is used to freeze foods and produce carbonated beverages and fire extinguishers.

“We are very grateful for the federal government’s support for our project,” said Suncor Energy Products Inc. General Manager, Gord Pinard. “Programs such as ecoABC are instrumental in helping expand Canada’s biofuels production capacity and integrating renewable fuels into our transportation energy supply chains.”

The ecoABC initiative was launched by the Government of Canada in April 2007. The initiative is part of the comprehensive Government of Canada renewable fuels strategy that focuses on increasing the demand for renewable fuels through regulation, expanding production capacity in Canada by offering an operating incentive, assisting farmers to participate in this sector of the economy and accelerating the commercialization of new technologies.

More information on AAFC’s ecoABC initiative is available online at www.agr.gc.ca/ecoabc.

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For more information, please contact:

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-759-7972
1-866-345-7972

Margaux Stastny
Press Secretary
The Office of the Honourable Gerry Ritz
613-759-1059 

BACKGROUNDER
Suncor Energy Products Inc. (SEPI), located in Toronto, Ontario, is a wholly owned subsidiary of Suncor Energy Inc, an integrated energy company headquartered in Calgary, Alberta. The company operates the 200 million litre per year Suncor St. Clair Ethanol Facility, the largest ethanol production facility in Canada. Suncor has been blending ethanol into its Sunoco gasolines since 1996. The ecoABC initiative is a $200 million, four-year initiative that provides conditionally repayable contributions for the construction or expansion of transportation biofuel production facilities. Funding is conditional upon agricultural producer investment in the biofuel projects and the use of agricultural feedstock to produce the biofuel.

The ecoABC initiative is delivered nationally by Agriculture and Agri-Food Canada. It is designed to provide an opportunity for agricultural producers to diversify their economic base and participate in the biofuel industry through equity investment/ownership in biofuel production facilities. The initiative is part of more than $500 million announced by the federal government to assist farmers and rural communities to seize new market opportunities in the agricultural bioproducts sector through biofuels and bioproducts initiatives.

This is the fourth biofuel plant funded under the ecoABC initiative. The other plants announced to date are IGPC Ethanol Inc., in Aylmer, Ontario; North West Terminal Ltd., in Unity Saskatchewan; and Western Biodiesel Inc., in Aldersyde, Alberta. The Government of Canada is investing a total of $2.2 billion over nine years toward the goal of reaching an average of five per cent renewable content based on the gasoline pool by 2010 and two per cent renewable content in diesel fuel and heating oil by 2012 and advancing next generation biofuel technologies.

For more information on the ecoABC initiative, please visit www.agr.gc.ca/ecoabc. For more information on the Government of Canada’s ecoAction plan, please visit www.ecoaction.gc.ca.

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