Two Saskatchewan groups are moving ahead with plans to build small-scale ethanol facilities.
North West Terminal Ltd. expects to proceed with a share offering next week to raise $10 million toward its proposed $34 million facility in Unity, Sask.
The remaining cost of the plant will be financed through debt.
The funds will pay for a 25 million litre ethanol plant to be built next to the farmer-owned inland grain terminal in northwestern Saskatchewan.
The original concept planned for an $80 million facility, with an annual capacity to produce 150 million litres of ethanol.
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Those plans were scrapped when the federal government rejected North West’s application for a $10 million grant through the federal government’s Ethanol Expansion Program.
The facility, which will be operated by North West Bio-Energy Ltd., a wholly owned subsidiary of North West Terminal Ltd., will require 68,000 tonnes of feedstock per year from local farmers.
“This project will be a big help to area farmers as it will create new and sustainable markets for our grain,” said NWT director Gerald Rewerts.
The project will provide an estimated 80 jobs during the construction phase and 16 full-time jobs once completed in the spring of 2008.
A similar project is being proposed in the east-central part of the province where a group of 11 farmers hopes to build a 40 million litre plant.
Blue Sky BioEnergy Ltd. is holding public meetings to inform local investors about the $30-$32 million project, which is expected to consume about 110,000 tonnes of wheat annually.
The project is a slightly behind the Unity project with a share offering planned in the next six to eight weeks, said Blue Sky executive director Ken Graham.
The company is waiting to see what type of ethanol incentives will be announced in the provincial throne speech before proceeding with the share offering.
Blue Sky hopes to raise $10 million through its Class A share offering, which will help pay for a plant that will be located between Neudorf and Killaly, Sask.
Like the Unity project, the remaining cost of the plant will be financed through debt.
If all goes as planned Blue Sky will start breaking ground this fall.
“It is conceivable that we could be up and operating by late fall 2007,” said Graham.
