VANCOUVER, March 14 /CNW/ - Canada's Environment Minister John Baird is
pleased to announce that Iogen Corporation's application for funding for
Canada's first commercial scale cellulosic ethanol production facility has
progressed to the due diligence phase.
"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
The application, which was submitted to Sustainable Development
Technology Canada (SDTC) under the recently launched NextGen Biofuels
Fund(TM), 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 meets 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 Fund(TM) 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
Fund(TM) 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(TM) 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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For further information:
For further information: Patrice Breton, Director, Communications,
Sustainable Development Technology Canada, (613) 234-6313 ext. 295,
email@example.com; Eric Richer, Press Secretary, Office of the Minister of the
Environment, (819) 997-1441; Mandy Chepeka, Director of Communications, Iogen
Corp., (613) 733-9830, Mandy.Chepeka@Iogen.ca; Environment Canada, (819)