Farm Tech proposes $185 million corn ethanol plant in Canada; financing tough

In Canada, Farm Tech has proposed a $185 million co-op corn ethanol plant in Ontario, but is having difficulty in co-op financing from farmers owing to the collapse of the Seaway Valley co-op, which tried and failed for 12 years to establish a local ethanol plant. Investors say they are impressed with the new project’s 55 Mgy size and site plan. GreenField Ethanol is constructing a $185 million plant near Johnstown that will fill the void left by the failed Seaway Valley project, and will be operational by year end.

Earlier this month, the New York Power Authority Board of Trustees voted to approve an allocation of 9 megawatts of power from the Niagara Power Project to Northern Ethanol, for its planned ethanol facility. The facility is planned as part of Ontario’s Brownfield Cleanup Program, which offers tax credits in return for cleanup and redevelopment of a 70-acre former Praxair property where Northern Ethanol plans to build.

Northern Ethanol said that it intends to build the 150 Mgy ethanol plant in Sarnia, Ontario for $210 million. The plant will commence construction later this year and be completed in 2010. Northern Ethanol said they would also build a second facility in Barrie.

Ontario has been best known in biofuels for the 15.8 Mgy Biox biodiesel plant in Hamilton, Ontario. Biox Corp. recently announced plans for an IPO to raise $150 million in new capital. With the IPO, Biox will become the first public Canadian biodiesel company. SunOpta and Lignol Energy are among the handful of public Canadian biofuels companies.

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