Two renewable fuel producers scale up to increase productivity and economic growth in rural southwestern Ontario

News release

Parliamentary Secretary Kate Young announces $10 million for two southwestern Ontario clean energy organizations to expand operations and create 57 new jobs

August 12, 2020 – Sombra, Ontario

As the world increasingly prioritizes clean growth and looks for alternatives to petroleum-based fuels, two rural southwestern Ontario organizations are offering cleaner, bio-based, renewable fuel solutions. These producers support the region’s economy and supply chain by sourcing local feedstocks and waste fats to create renewable clean energy alternatives while creating jobs in rural communities.

Today Kate Young, Parliamentary Secretary, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages (FedDev Ontario), announced a total FedDev Ontario investment of $10 million to support the scale-up and growth of two renewable fuel producers in the region: FORGE Hydrocarbons and IGPC Ethanol Inc..

FORGE Hydrocarbons uses a proprietary Lipid-to-Hydrocarbon technology, developed by Dr. David Bressler, to produce renewable diesel from waste fats and oils. With a $5-million repayable contribution from FedDev Ontario, the company will acquire advanced equipment, automate processes, and establish a facility in Sombra, Ontario. FORGE will increase production of biofuel from a capacity of 200,000 litres to 28 million litres per year, scaling up to commercial levels. The fuels produced by FORGE’s advanced technology are a clean alternative to petroleum-based fuels and are compatible with existing engines and infrastructure. This cleantech project is expected to reduce greenhouse gas emissions by over 70 percent when compared to traditional petroleum-based fuels. Through this project, FORGE Hydrocarbons will create 38 jobs in Sombra.

IGPC Ethanol Inc. is a renewable fuel co-operative based in Aylmer, that creates sustainable growth by producing ethanol from corn. Ethanol offers an environmentally conscious alternative to traditional gasoline, as vehicles using ethanol or ethanol mixed with gasoline emit less greenhouse gas than those using gasoline alone. Since its inception, IGPC Ethanol Inc. has produced 180–200 million litres of ethanol from corn per year at its production plant. It also makes co-products, including distillers’ grains (used as an ingredient in animal feed) and corn oil (used in biodiesel production and as an animal feed ingredient). In 2018, the cooperative began scaling up operations to reach new markets, acquiring advanced equipment and doubling its ethanol production to 380 million litres per year. As an added benefit, IGPC Ethanol now has the ability to capture and sell 280,000 tons of carbon dioxide annually for alternate use, such as in the food and beverage processing industry, which offers additional economic growth for the company. A FedDev Ontario repayable contribution of $5 million supported the project, which added 19 skilled jobs in Aylmer.

These projects are creating skilled jobs, strengthening the biochemical innovation sector in southwestern Ontario, and supporting a healthier environment.

Quotes

“These two projects build on our region’s reputation as a strong contributor to innovation in the petrochemical sector. As the world continues to seek cleaner, cost-effective biochemical products, innovative solutions like FORGE’s Lipid to Hydrocarbon technology and IGPC Ethanol Inc.’s corn-based ethanol production methods are  continuing to build on the region’s strength as a player in energy production, using cleantech, all while creating jobs in rural southwestern Ontario.”
- Kate Young, Parliamentary Secretary to the Minister of Economic Development and Official Languages (FedDev Ontario)

“Apart from the difficulties we are currently facing with the pandemic, the climate crisis remains one of the most important challenges of our time. Investments like these ones demonstrate our government’s vision that the economy and the environment go hand-in-hand and will contribute to make Canada a carboneutral economy by 2050. These projects mean new jobs in rural communities, and new ways to reduce greenhouse gases and mitigate climate change.”
- The Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for the Federal Economic Development Agency for Southern Ontario

“With our newly expanded production capacity, IGPC Ethanol Inc. contributes significantly to the renewable energy industry and agricultural sectors in Ontario, producing 380 million litres per year of high-octane fuel grade ethanol and 340,000 tonnes of high-protein distillers’ grains from 36 million bushels of Ontario corn. We are very grateful for the financial support provided by FedDev Ontario. This support has allowed us to create an extremely cost-efficient facility producing a fuel that is 60 percent lower in emissions compared to that of gasoline.”
- Kevin Norton, CEO-COO, IGPC Ethanol Inc.

“FORGE is extraordinarily pleased to have this investment from the Federal Economic Development Agency for Southern Ontario. FedDev Ontario’s investment not only adds to the validation received to date for the LTH technology, but also provides a necessary monetary boost to FORGE’s commercialization pathway as we begin to build our facility in and add skilled jobs to the Ontario renewable energy sector.”
- Tim Haig, CEO, FORGE Hydrocarbons

Quick facts

  • The global biodiesel market is expected to grow from $25 billion in 2019 to $44 billion by 2025.

  • FORGE will work in partnership with World Energy, which will provide the project site, advice, feedstock for producing biofuel, market services and sales facilitation. In addition to FedDev Ontario’s repayable contribution, FORGE Hydrocarbons has leveraged $25.6 million from private investors.

  • IGPC Ethanol Inc. is wholly owned by Integrated Grain Processors Co-operative Inc.—one of the largest agricultural co-operatives in Ontario. FedDev Ontario’s repayable contribution to IGPC is towards a total project cost of over $112 million, leveraging more than $107 million in other investments.

  • FedDev Ontario recognizes the vital role that rural communities play in the region’s economy, as demonstrated by an initial $100 million allocation for projects that drive innovation and growth in rural communities.

  • FedDev Ontario has invested over $123 million in 60 cleantech projects since 2015.

Associated links

Contacts

Alexander Cohen
Press Secretary
Office of the Minister of Economic Development and Official Languages
alexander.cohen@canada.ca

Media Relations
FedDev Ontario
416-954-6652
fdo.mediarel-relmedias.fdo@canada.ca

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