A Shell service station in Ottawa has become the first in the world to offer cellulose ethanol at its pumps.
The station started using Iogen Energy Corporation’s wheat straw ethanol at a 10 percent blend rate in its regular gasoline as of June 10.
The one-month demonstration project uses second generation biofuel, which employs sources other than grain.
“It definitely shows that it’s not just in a test tube, that this is here, that it’s real and we’re demonstrating that it works in all cars and trucks,” said Iogen spokesperson Mandy Chepeka.
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The launch of the demonstration project lured federal transport and infrastructure minister John Baird.
“This one small retail station in Ottawa is one big step forward for advanced biofuels globally,” he said.
Iogen has operated a demonstration plant in Ottawa since 2004. The facility is capable of producing 40,000 litres of cellulose ethanol a month. The fuel produced at the plant has been used in a variety of demonstrations but never sold at the retail level.
“I am excited we are leading the pack in cellulosic ethanol production technology and, with this event, showing what’s possible in the future,” said Graeme Sweeny, Shell’s executive vice-president of future fuels and carbon dioxide.
“While it will be some time before general customers can buy this product at local service stations, we are working with governments to make large-scale production economic.”
Shell owns 50 percent of Iogen. The two companies are investigating the feasibility of building a 70 million litre commercial-scale wheat straw cellulose ethanol plant in Prince Albert, Sask., at the pulp mill owned by Domtar.
Chepeka anticipates the companies will make a final investment decision on the plant in the next eight to 12 months after project design and detailed feasibility work are completed.
Iogen originally planned on building a much bigger facility near Birch Hills, Sask. As recently as December, at the Canadian Renewable Fuels Association annual meeting, company officials talked about a two-phase project, with the result being a 150 to 160 million litre plant.
There are no longer plans to ramp up production through a follow-up expansion, said Chepeka.
The company says it has contracted with 640 area farmers to supply the facility with the 750 tonnes of straw it will need daily. Chepeka was unable to provide a price but the company had previously signed contracts with producers in the Birch Hills area offering to pay $10 per tonne for their straw.
Shell will be the primary customer for the fuel produced by Iogen’s first commercial scale plant. Chepeka did not know how many service stations the plant could supply across North America.
The service station in Ottawa is expected to use 60,000 litres of Iogen’s fuel during the month-long demonstration.
