COLLINGWOOD, ONTARIO - A recently closed starch plant
in Collingwood will be converted to produce ethanol fuel, helping Canada address
climate change by increasing the supply of this cleaner, renewable fuel, the
Honourable Andy Mitchell, Minister of Agriculture and Agri-Food, announced
today. Power Stream Energy Services Inc. has been allocated approximately $7.3
million from the Government of Canada's Ethanol Expansion Program (EEP) to
convert the recently closed Nacan cornstarch plant into a facility that will
produce 52 million litres of ethanol annually. The plant is expected to employ
about 45 people when operational.
"Power Stream's plan shows what can happen when innovation, determination and
community spirit come together," said Minister Mitchell. "Reopening this plant
will lead to new jobs and it will help Canada address climate change. I
congratulate Power Stream for helping demonstrate both the importance and
flexibility of the EEP."
"We are delighted to have the financial and logistical support of Natural
Resources Canada and Agriculture and Agri-Food Canada in making this extremely
worthwhile project a reality," said Curtis Chandler, Executive Director of Power
Stream Energy. "The ethanol production from the Collingwood facility will help
meet national and provincial renewable fuel targets and the plant corn supply
and labour pool will be drawn from the local community. This makes the project a
national, provincial and local success in our view."
Power Stream Energy Services Inc. is a leading Canadian energy risk
management provider and has deep roots in North America's deregulated energy
markets. Its principals have successfully developed and operated various aspects
of the energy value chain, including commodity brokerages, natural gas marketing
companies and natural gas storage facilities.
The Collingwood plant is one of five successful proposals that has been
allocated a total of approximately $46 million in funding through the second
round of the EEP, which is
administered by Natural Resources Canada and Agriculture and Agri-Food Canada.
These projects, in addition to six projects that were allocated $72 million in
the first round of EEP,
will increase Canadian production to 1.4 billion litres per year. This is enough
ethanol to achieve, two years ahead of schedule, the Government's target of
having a blend of 10-percent ethanol in 35 percent of all gasoline in Canada by
2010. Additionally, the $118 million in funding the Government of Canada has
allocated under the EEP
will result in close to a $1-billion investment from the companies involved in
the projects.
In addition, the three projects in Ontario, combined with the projects that
were allocated contributions under Round 1 of the EEP, are expected to increase
ethanol production in the province to almost 800 million litres per year. This
is enough capacity to meet the requirement, announced by the Government of
Ontario, that gasoline sold in the province contain an average of five-percent
ethanol by 2007.
The EEP is one part of
the Government of Canada's renewable-fuels strategy that also includes support
for research and development, exemptions from federal fuel excise taxes and
consumer awareness activities. The original funding for this program was
provided in Budget 2003 and is part of the Government of Canada's overall
commitment to climate change action.
The Government of Canada's approach to climate change is focused on making
the right choices for Canada. This will ensure that the actions taken contribute
to long-term goals of building a sustainable economy for the 21st
century, a healthier environment and strong communities, while affirming
Canada's place in the world.
For further information on renewable fuels, the successful projects and the
EEP, visit http://www.nrcan.gc.ca/media/ and http://oee.nrcan.gc.ca/transportation/vehicle-fuels.cfm.
FOR BROADCAST USE:
A recently closed starch plant in Collingwood, Ontario, will be converted to
ethanol production with the support of a $7.3-million Government of Canada
investment. Power Stream Energy Services Inc. is one of five companies to
receive funding under the second round of the Ethanol Expansion Program to
increase the production and use of this cleaner, renewable transportation fuel
in Canada.
For more information, media may contact:
Ghyslain CharronMedia RelationsNatural Resources
CanadaOttawa(613) 992-4447
Tom OrmsbyDirector of CommunicationsOffice of the MinisterNatural
Resources CanadaOttawa(613) 996-2007
Elizabeth WhitingOffice of Minister MitchellAgriculture and Agri-Food
CanadaOttawa(613) 759-1059
Media RelationsAgriculture and Agri-Food
CanadaOttawa1 (866) 345-7972
Curtis ChandlerExecutive DirectorPower Stream Energy Services
Inc.Toronto(416) 628-2828Cell:
(239) 405-3365
