RED DEER, ALBERTA - The expansion of an ethanol
production plant in Red Deer will help Canada address climate change by
increasing the supply of this cleaner, renewable fuel, the Honourable Anne
McLellan, Deputy Prime Minister and Minister of Public Safety and Emergency
Preparedness, announced today. Permolex Ltd. has been allocated $1.1 million
from the Government of Canada's Ethanol Expansion Program (EEP) for
this project. Minister McLellan made the announcement on behalf of the
Honourable R. John Efford, Minister of Natural Resources Canada, and the
Honourable Andy Mitchell, Minister of Agriculture and Agri-Food.
"This is good news for the environment and good news for the economy," said
Minister McLellan. "Permolex already knows the benefits of ethanol and the
potential of this industry to grow. Expanding this plant will increase the
supply of this renewable fuel, helping us respond to climate change and
increasing employment opportunities in Red Deer at the same time."
Permolex Ltd. will expand an existing facility that currently produces 28
million litres of ethanol a year. The expanded plant will allow Permolex to
produce an additional 12 million litres annually, for a total of 40 million
litres a year.
"Permolex is delighted to have the support of Natural Resources Canada and
Agriculture and Agri-Food Canada for the expansion of the ethanol portion of our
facility," said Doug MacKenzie, CEO of Permolex Ltd. "The ethanol production
from the expanded facility will assist in meeting national and provincial
renewable fuel targets, and the plant grain supply will be drawn from the local
community."
Permolex is a unique grain processing facility that produces food-quality
flour, vital wheat gluten as well as ethanol and high-protein animal food. The
plant's design incorporates leading edge technologies and processes.
The Permolex 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.
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:
An ethanol plant in Red Deer, Alberta, will be expanded with the support of a
$1.1-million Government of Canada investment. Permolex Ltd. 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
Doug MacKenziePresident and CEOPermolex Ltd.Red Deer(905)
330-5370 (Ontario)
