Local people have been showing strong interest in a proposal to build a biodiesel plant near Souris, Man., according to Dustin Williams, a director with the Southern Manitoba Biofuels Co-op.
“We’ve had some pretty good interest in it so far,” he said.
The location of the proposed $5.4 million biodiesel plant was announced Jan. 17 at Manitoba Ag Days in front of a large audience.
Williams said that the co-op would conduct a series of community meetings around the province over the next three months as part of its push to sell at least 3,000 shares at $1,000 each, the number needed to start construction. Almost 50 memberships, at $100 each, have been sold.
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“We were pushing more for people to come out to the community meetings, and leaving the cheque signing for then,” Williams said.
“We anticipate that we’ll see what kind of actual cash interest we’re going to have at the meetings.”
The plant, to be built on a 10 acre site just outside of Souris across from the Agricore United grain terminal, will be able to produce nine million litres of biodiesel per year, along with 16,700 tonnes of canola meal as a byproduct.
“I had one guy phone who told us to put his name down for $10,000 for 10 shares,” said Williams. He added that a group of people from Brandon had also pledged to buy some investment-only shares.
“They said it was something they should have their money in.”
Souris-Glenwood economic development officer Joy Dornian announced the equity drive during her presentation.
She noted the federal government’s announcement in December of a mandate requiring two percent biofuel content in diesel gave the project an extra boost.
“We need to ensure that there will be a strong, producer-owned biodiesel industry in Manitoba,” said Dornian.
The project, which began 21/2 years ago at a community development meeting, first looked at a small pilot project to be located at a local farm. But after research, the co-op discovered that the technology was already proven and widely available, and that bulk sales could be tapped, eliminating the need for local distribution networks.
Funding for the feasibility study mainly came from Western Economic Diversification Canada but private parties also invested.
“In the world of biodiesel, this is a small plant. Our goal is to use local feedstock to produce meal and biodiesel for local use,” Dornian said. “This is the size that seemed to make the most sense.”
The co-op, which has combined the forces of the Souris-Glenwood Community Development Corp. with the Southwest Fibre Co-op, hopes to
use this plant as a model that can be replicated in other locations in the region.
Proposals for the environmental assessment and licensing for the construction and engineering have been received. A marketer has been hired and a general manager will be chosen in the coming months.
“Once the equity drive is completed, we will be able to hit the ground running,” said Dornian.
