Step forward for proposed world-leading ethanol refinery in Canada
Iogen Corporation's application for funding for Canada's first commercial scale cellulosic ethanol production facility has progressed to the due diligence phase, Canada's Environment Minister John Baird has announced.
'This is a good day for Canadians and our environment,' said Minister Baird. 'Thanks to our Government's allocation of $500 million for next generation biofuels, Canada is one step closer to making our country's first full-scale cellulosic ethanol fuel facility a reality. With technologies such as this, Canada is well-positioned to be a world leader in the renewable fuels industry.'
The application, which was submitted to Sustainable Development Technology Canada (SDTC) under the recently launched NextGen Biofuels Fund, is for a cellulosic ethanol biorefinery to be built in Saskatchewan. The application has now entered the due diligence process. After this process, SDTC will make a final decision on funding.
'Cellulosic ethanol has the potential to help Canada meet its Renewable Fuels Standard in a sustainable way,' said Vicky J Sharpe, President and CEO of SDTC. 'With an abundance of potential feedstocks that is unmatched, Canada has a huge advantage in the race to bring cellulosic ethanol to market.'
Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as fast-growing grasses, agricultural residues and forest biomass, and produced through the use of new conversion technologies. Such cellulosic feedstocks consist largely of materials that are currently considered waste, can often be grown on low-grade soil, and have greater potential for co-products.
'Today's announcement brings us one step closer to making cellulosic ethanol a commercial reality,' says Brian Foody, Iogen President. 'Iogen is a world leader in cellulosic ethanol, with proven cellulosic ethanol production experience since 2004. We believe that our technology will help reduce greenhouse gas emissions in the transportation sector, provide economic growth opportunities for farmers and increase energy diversity.'
The NextGen Biofuels FundT will support up to 40% of eligible project costs for the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels. The contribution is repayable based on free cash flow over a period of 10 years after project completion. The funding process for the NextGen Biofuels FundT uses a classic Project Assurance Process approach based on international best practices in deciding whether to undertake the development of large-scale, capital intensive, or high capital expenditure, projects.
Iogen and its partners Shell and Goldman Sachs are developing a unique process that uses specialized enzymes to convert plant fibre into sugars that are then fermented and distilled to make cellulosic ethanol.
The NextGen Biofuels Fund T was announced by the Government of Canada in Budget 2007 and launched by SDTC on September 12, 2007. It is open for applications at any time.
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