Ethanol enthusiasm runs out of gas

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Published: November 2, 1995

SASKATOON (Staff) – The next wave of Canadian ethanol plants is still rolling towards shore, but its momentum has been slowed by a number of hidden barriers.

Construction of two proposed ethanol plants in Ontario has been delayed, as has the opening of a plant in Weyburn, Sask., while a group in Killam, Alta., has completed a business plan, but not yet found anyone to build or operate it.

The Weyburn plant, which is a converted liquor distillery, was set to open this autumn, but that has been delayed until spring. The facility held an open house this week, but the winter will be needed to organize production.

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Construction delayed

No sod has been turned for either the Chatham or Cornwall, Ont. plants, although the 200-million-litre-per-year Chatham plant was expected to begin construction this fall.

Jim Johnson of the Canadian Renewable Fuels Association said the Chatham delay was caused by engineering problems.

Because of needed changes, construction is not expected now until spring, he said.

The Cornwall plant is still going ahead, Johnson said, even though there is now some doubt over a grant the provincial government had promised.

The promise was made while the New Democratic Party was in power, but since the Progressive Conservatives have taken over, “they’re kind of balking at giving this grant to them,” he said.

“It’s probably not enough money that (taking it away) will stop the project, but it means they’ll have to go back and find more financing.”

A business plan for an ethanol/fibre plant in Killam, Alta., shows it is a viable idea, according to Killam Business Development District chair Bill Gibb.

But since his group does not set up businesses themselves, they will have to find investors and people to build, own and operate a plant, he said.

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