The Saskatchewan government’s American partner has yet to secure financing for the $55 million ethanol plant to be built at Belle Plaine.
The plant was announced with much fanfare six months ago as the first of three 80-million-litre facilities to be built by the province and Broe Companies of Denver, Colorado.
Crown Investments Corp. minister Maynard Sonntag said he still expects construction to start in May.
“I was advised just this morning, in fact, that the issue is no longer financing itself. The issue is about the terms of the financing now,” Sonntag told reporters April 10.
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“I think it’s fair to say it’s probably taking a little bit longer than was originally anticipated but it’s nothing that’s causing anybody concern yet.”
The opposition Saskatchewan Party, however, is concerned.
The Belle Plaine facility will be located in the riding of energy critic Lyle Stewart.
“In late February the minister responsible for CIC told the media that he would be worried if Broe did not have its financing in place by the end of March,” Stewart pointed out during question period.
The MLA said there is no activity at the site, and he wanted to know the project’s status.
Broe spokesperson Tom Henley confirmed the company’s financing is not in place.
“We are still in the process of trying to find the best terms,” he said April 14. “We’re talking to a number of prospective lenders.”
Henley said there is no specific timetable for beginning construction, other than spring. That could mean it will start as late as June. The plant is supposed to be operational in spring 2004.
A delay would likely push back the other two plants, proposed for the Yorkton-Melville and Tisdale areas.
“We’re not expecting to provide as much detail about (the other two plants) as early as we had said,” Sonntag said. “The communities are still negotiating.”
Stewart said he hopes the government doesn’t attempt to finance the Belle Plaine project on its own to win votes.
The province, through CIC, is to provide 40 percent of the money while Broe supplies 60 percent.
Stewart pointed out the Regina office of PrairieSun Energy Products, the company formed by the two partners, appears to be vacant. Local contact information has been taken off the company’s website.
Meanwhile, efforts to market byproducts from the proposed plant continue.
At the Saskatchewan Institute of Agrologists annual meeting last week, the project engineer said there has been a concerted effort over the last six months to find buyers for the dry distillers grain among dairies in Western Canada.
Raymond Van De Woestyne outlined the plant’s capacity and capability. He also discussed environmental concerns, such as how much water the plant will use and what will become of the carbon dioxide it generates.
