For Release
August 23, 2006
SASKATOON, Saskatchewan — Rural community groups
and other interested organizations now have access to a technical and financial
template that will ultimately help them decide if integrated ethanol-feedlot
operations are feasible in their regions thanks—in part—to an
$84,000 investment from the Government of Canada.
The Honourable Carol Skelton, Minister of National Revenue and Minister
of Western Economic Diversification, Saskatchewan Deputy Premier and Regional
Economic and Co-operative Development Minister Clay Serby and Saskatchewan
Ethanol Development Council president Lionel LaBelle launched the template
today.
Western Economic Diversification Canada (WD) provided $44,000 through the
Canada-Saskatchewan Western Economic Partnership Agreement for the $110,000
project, commissioned by the Saskatchewan Ethanol Development Council. Minister
Gary Lunn announced that Natural Resources Canada (NRCan) provided $40,000. Community
groups provided $16,000 and Saskatchewan Agriculture and Food a $10,000 contribution.
“This useful tool will assist the complex legwork required for high-quality
feasibility studies or business plans that will help increase ethanol production
in Canada,” said Minister Skelton. “When combined with Agriculture
and Agri-Food Canada’s $11 million for helping agricultural producers
develop sound business proposals for increasing biofuel production capacity,
the new Government of Canada has provided an excellent toolkit to help producers
and to create job opportunities in all regions of Canada. Studies such as
this add to our knowledge and productivity in the natural resources sectors,
leading to real change and real results for Canadians."
"Saskatchewan's Pound-Maker integrated ethanol-cattle feedlot facility
was the first of its kind," said Minister Serby. "I am pleased
that their hard work and expertise was used to develop the template for an
integrated model."
"The team gathered excellent, up-to-date technical information for the
template, which, combined with the computer-modeling finance tool, will allow
communities and proponents to make qualified decisions to determine their suitability
for the integrated ethanol industry,” said Mr. LaBelle. “Thanks
to Agriculture and Agri-Food Canada, if they decide their idea is suitable,
they can apply for assistance through that department’s recently announced
Biofuels Opportunities for Producers Initiative (BOPI) to put their ideas
into a business plan.”
Attention Assignment Editors and News Directors: Backgrounder Attached
For additional information, contact:
Joanne Mysak
Manager, Communications
Western Economic Diversification Canada
Saskatoon, SK
Tel: (306) 975-5942
Lionel LaBelle
President
Saskatchewan Ethanol Development
Council
Saskatoon, Saskatchewan
(306) 384-0149
Ghyslain Charron
Media Relations
Natural Resources Canada
Ottawa, Ontario
(613) 992-4447
Donna Rehirchuk
Media Relations Officer
Saskatchewan Agriculture and Food
Regina, Saskatchewan
(306) 787-2359
WD Toll-Free Number:
1 888 338-WEST (9378)
Web Site: WD is online at
www.wd-deo.gc.ca.
Subscribe to news releases and keep up-to-date on the latest from WD.
BACKGROUNDER
Integrated Ethanol-feedlot Template
Ethanol is an alcohol that can be used as a fuel. It is created
from a process that breaks down materials found in grain and corn. The
liquid and solid byproducts, thin stillage and distiller’s grain,
can both be fed to cattle at an on-site, or integrated, feedlot facility
to create a secondary enterprise. Modern vehicles can utilize
a 10 per cent ethanol blend, which could significantly lower harmful
emissions.
Interest has grown in the past few years amongst rural groups in
the province wanting to establish integrated ethanol/cattle feedlot
production facilities. At the same time, there have been improvements
to production technology and by-product uses.
The Saskatchewan Ethanol Development Council (SEDC) commissioned
the template report to assist community groups in their information
search for their projects.
The report’s business model comes from the lessons learned
at Saskatchewan’s
Pound-Maker Agventures Ltd., which was Canada’s first operating
integrated ethanol-cattle feedlot facility.
The template helps determine if the right conditions exist for a
specific enterprise and outlines the steps necessary to build it. It
is applicable to facilities ranging from 15 million to 25 million
litres of ethanol.
In order to help communities determine if an ethanol feedlot facility
would be cost-effective in a particular region, the template asks
four questions:
Is this a viable business opportunity?
What is the capital investment required for construction and start-up?
What is the return on investment?
What is the next step for a community investor or producer group
to capitalize on the business opportunity?
It also includes detailed information such as:
the most recent and improved ethanol processing technologies;
conceptual design drawings;
a list of required vessels, equipment, and controls;
by-product uses;
feedlot design and operation parameters;
water, power and natural gas requirements; and
identification of potential environmental issues and their mitigation.
The template also identifies opportunities for communities to cost
share business and design plans which may reduce overall capital construction
costs. These costs are estimated at $30.5 million for an integrated
20 million-litre ethanol plant and 20,000-head cattle feedlot.
The return on investment could vary from nine per cent in the first
year to 24 per cent in year 10. However, the report cautions that
each community will have variations and factors that will have an
impact on their returns on investment, and encourages groups to evaluate
their specific programs.
The Saskatchewan Ethanol Development Council Inc. (SEDC) was created
in 2004 to promote and co-ordinate the efforts of all member stakeholders
in the development of a strong, vibrant, profitable and sustainable
ethanol industry in Saskatchewan.
Signed in September 2003, the Canada-Saskatchewan Western Economic
Partnership Agreement (WEPA) focuses on increasing the competitiveness
and productivity of Saskatchewan’s economy. The agreement
funds initiatives that develop Saskatchewan’s small- and medium-sized
business sector, support economic and technological innovation,
assist in economic diversification, and increase Aboriginal participation
in the economic mainstream.
Interested community groups can access
the template by contacting the Ethanol Development Council at (306)
384-0149.
