Government of Canada Invests $25 Million in Biofuels Production

July 18, 2008

MOORETOWN, Ontario - Suncor Energy's St. Clair Ethanol Plant is expanding to double its production of cleaner-burning, renewable energy, thanks to a $25 million investment by the Government of Canada.

The announcement was made today by Guy Lauzon, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, on behalf of Gerry Ritz, Minister of Agriculture.

"This investment will create new jobs in Lambton County and St. Clair Township while also giving Canadian families a green alternative at the gas pump," said Parliamentary Secretary Lauzon. "Our government's biofuel strategy is delivering real results for our farm families, our communities, and our environment."

The Suncor St. Clair Ethanol Plant currently produces 200 million litres of ethanol per year and will be expanded to double its capacity to 400 million litres per year. The facility, which is expected to be completed in September 2009, has also received equity investment from farmers totaling $12.5 million. This project will create new opportunities for farmers who are growing the feedstock to produce the ethanol, as well new opportunities for those who are involved as financial and business partners in the plant's expansion.

In addition to ethanol, the plant will produce dried distillers grains with solubles (DDGS), sources of high protein and high-energy feed for dairy and beef cows, hogs and poultry, as well as carbon dioxide, which is used to freeze foods and produce carbonated beverages and fire extinguishers.

"We are very grateful for the federal government's support for our project," said Suncor Energy Products Inc. General Manager, Gord Pinard. "Programs such as ecoABC are instrumental in helping expand Canada's biofuels production capacity and integrating renewable fuels into our transportation energy supply chains."

The ecoABC initiative was launched by the Government of Canada in April 2007. The initiative is part of the comprehensive Government of Canada renewable fuels strategy that focuses on increasing the demand for renewable fuels through regulation, expanding production capacity in Canada by offering an operating incentive, assisting farmers to participate in this sector of the economy and accelerating the commercialization of new technologies.

Source: Government of Canada