New Lloydminster Ethanol Plant to Bring Tons of Opportunities

source: Farm and Food Report

Just listening to Husky Energy’s Dennis Floate list benefits for the community in terms of jobs, new markets for Saskatchewan grain, and benefits for the environment is enough to bring you on-side.

“This will be the largest ethanol plant in Western Canada, located beside Husky’s heavy oil upgrader at Lloydminsster. During construction, more than 200 person-years of work will be created. It will provide full-time employment for 20 to 25 people once it becomes operational in the second quarter of 2006.”

This is not Husky’s first venture in the production and marketing of ethanol-blended fuels.

“We built our first plant in Minnedosa, Manitoba back in 1981 to produce ethanol for fuel and industrial use. Husky and Mohawk ethanol-blended gasolines are familiar to motorists under the name Mother Nature’s Fuel.”

When the Saskatchewan government opted to legislate the use of ethanol-blended gasoline within the province, Husky Energy embarked on a 130 million litre a year plant project close to its upgrader. There, it will capture excess steam and waste heat from the upgrader for use in ethanol production, while also making use of handling and transportation infrastructure already on site.

Ethanol is a high-octane, alcohol-based fuel additive produced from milled grain, such as wheat, that is mixed with water and fermented. Enzymes are added to the mixture to convert starch to sugar, and yeast is incorporated to trigger the fermentation process. The resulting fermented mash is distilled to harvest the ethanol it contains.

There are substantial benefits for grain producers, according to Bryan Doig, a Livestock Development Specialist with Saskatchewan Agriculture and Food.

“The feedstock for the facility will come primarily from grain producers in the Lloydminster area. Husky will purchase about 350,000 tonnes of grain - or almost 13 million bushels of grain - annually from local producers, primarily CPS wheat and other types of grains.”

This will also provide a new opportunity to the grain trucking industry, as the plant will be unloading approximately 45 “Super Bs” of grain each working day of the year.

The fuel-grade ethanol produced will be sold to Saskatchewan, Canadian and export markets.

In addition, 134,000 tons of DDGS—a source of non-animal based high-grade protein and energy—will be produced and made available to livestock producers and the feed industry as a feed supplement.

“For agriculture and the environment, what a great opportunity,” says Doig.

Ethanol-blended gasolines can reduce vehicle emissions by up to 30 per cent.

To find out more about Husky’s Lloydminster Ethanol Plant project, visit:
http://www.huskyenergy.ca/products/default_ethanol.asp

For more information, contact:

Dennis C. Floate
Senior Communications Advisor
Husky Energy Inc.
(403) 298-6587

Bryan Doig
Livestock Development Specialist
(306) 446-7477

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