Energy Manager

Iogen ethanol production facility takes major step forward


March 31, 2008  By Newswire

Iogen Corporation’s application for funding Canada’s first commercial scale cellulosic ethanol production facility progressed to the due diligence phase in March. Canada’s Environment Minister John Baird was on hand at Globe 2008 to make the announcement.

“Thanks to our government’s allocation of $500 million for next generation biofuels, Canada is well-positioned to be a world leader in the renewable fuels industry,” said Minister Baird.

The application, which was submitted to Sustainable Development Technology Canada (SDTC) under the recently launched NextGen Biofuels Fund, is for a cellulosic ethanol biorefinery, to be built in Saskatchewan. Once the due diligence process is complete, SDTC will make a final decision on funding.

“Cellulosic ethanol has the potential to help Canada meet its Renewable Fuels Standard in a sustainable way,” said Vicky Sharpe, president and CEO of SDTC.


Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as fast-growing grasses, agricultural residues and forest biomass. These feedstocks consist largely of materials that are currently considered waste.

“Today’s announcement brings us one step closer to making cellulosic ethanol a commercial reality,” said Brian Foody, Iogen president.

The NextGen Biofuels Fund will support up to 40 per cent 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 10-year period after project completion.

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