The federal government has announced a $25 million contribution to the cost of expanding a southwestern Ontario ethanol plant, a project that includes investment by area farmers and Suncor Energy Inc., an energy company working in the Alberta oil sands.
The federal investment, announced July 18, will allow a doubling of the existing 200 million litre Suncor plant in Mooretown, Ont.
The construction is to be completed by September 2009.
Area farmers have invested $12.5 million in the expansion.
The government announcement said that in addition to ethanol and a high-protein animal feed byproduct for local livestock, the plant also will produce carbon dioxide that can be used to freeze foods, carbonate drinks and fill fire extinguishers.
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Ontario Conservative MP Guy Lauzon, parliamentary secretary to agriculture minister Gerry Ritz, announced the government grant.
He said it is part of the government plan to help farmers develop new markets for their grain while offering drivers “a green alternative at the gas pump.”
The federal money is described as an investment but a federal official said it is a grant, with conditions, that gives the government no equity in the operation.
The conditions are that the expansion be completed and that the expanded plant be put into operation.
