PROVINCE & ETHANOL DEVELOPMENT COUNCIL TO CREATE ETHANOL/FEEDLOT TEMPLATE

The Province and the Saskatchewan Ethanol Development Council today announced the creation of an integrated ethanol/feedlot development template that will help communities and other groups determine the viability of potential ethanol/feedlot operations.

The template, which is being developed by Meyers Norris Penny LLC and VCM Engineering of Saskatoon, will help interested groups determine if the right conditions exist for their specific enterprise, and will outline the steps necessary to build such a complex. The template will be applicable to integrated ethanol facilities ranging in size from 15 million to 25 million litres.

Integrated ethanol/feedlot developments have the potential to expand the feedlot industry in Saskatchewan and use excess grain products while producing a valuable fuel additive. There is a natural fit between ethanol distilleries and cattle feeding facilities due to the synergies involved with not having to dry the distiller's grains for transport. The cost savings associated with not having to dry the grain solids allow the integrated facilities to compete with stand-alone ethanol facilities of significantly larger capacity.

"Saskatchewan has tremendous potential for renewable fuel production," Agriculture and Food Minister Mark Wartman said. "We have 42 per cent of the crop land in Canada and we have a lot of local expertise—both scientific and practical—in the field of ethanol production. This 'Made in Saskatchewan' template will incorporate the latest local and international developments in ethanol production technology."

"Much of this new technology has just become available within the last 24 months, and much of that was developed here in Saskatchewan, specifically at the University of Saskatchewan," Saskatchewan Ethanol Development Council President Lionel LaBelle said. "By capturing the latest technology, we can drive down the capital costs of these ethanol/feedlot projects, making them even more viable as community-owned operations."

Ethanol production complements Saskatchewan's existing livestock and crops industries, and reflects the government's commitment to adding value to the province's agricultural commodities. The project supports the vision laid out in the November 2005 Throne Speech, in which one-third of the fuel used in Saskatchewan will be renewable by the 2030s.

The $110,000 cost of the project is being shared by Saskatchewan Agriculture and Food, Natural Resources Canada, Western Economic Diversification Canada and 10 Saskatchewan community groups. The template should be completed by May 2006.

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For More Information, Contact:

John Buchan Agriculture and Food Regina Phone: (306)787-5687

Lionel LaBelle Saskatchewan Ethanol Development Council Saskatoon Phone: (306)384-0149