It has been a difficult year for first generation feedstocks both economically and climatically. In April, Manitoba fields were overwhelmed by record flood levels in the Red River Valley. In the months following, cold weather across the Prairie provinces and dry areas in western Saskatchewan delayed much of Western Canada’s wheat and barley crop production. Late-spring frost also continued to impact Prairie canola crops, all adding to the speculation of a lower crop production year.

Federal and provincial governments however, have responded with programs and incentives aimed at supporting not only new advancements in next generation feedstocks and technologies, but also first generation projects—the foundation in which the biofuels industry is built. The ecoENERGY for Biofuels Program in particular has offered a significant amount of funding to first generation plants, more so than ever it seems, over the past few months.

In April, the ecoENERGY program invested $86.8 million to GreenField Ethanol to maintain the operations of its grain-based Chatham and Tiverton, Ontario, plants which produce a combined total of 157 MMly of ethanol from nearly 22 million bushels of corn annually.

In May, the ecoENERGY program invested $84.76 million to Integrated Grain Processors Cooperative’s 150 MMly corn-based Aylmer, Ontario, ethanol facility to support the cost of construction as well as to create local jobs and economic opportunities.

The program also awarded $23.2 million in funding to Permolex Ltd.s’ 40 MMly ethanol and grain fractionation facility in Red Deer, Alberta, and this month, the program made yet another funding announcement for $19.9 million, which will go to Western Biodiesel Inc.’s 19 MMly biodiesel facility in High River, Alberta. Eighteen other projects have been approved for funding as well.

What this indicates is that despite difficult economic times, unpredictable weather conditions and amid a transitioning industry, first generation facilities continue to be valued and supported by federal and provincial governments as they encourage the development of a competitive domestic industry for renewable fuels.

Khalila Hammond
Managing Editor
khammond@bbiinternational.com