Husky Energy, a Canadian-based, integrated oil and energy company, is replacing its existing ethanol plant at Minnedosa, Manitoba with a new ethanol facility that increases the capacity of the original by a factor of 10.
The new plant, to be constructed at an estimated cost of C$145 million (US$124.4 million), will have a production capacity of 130 million liters (34.3 million gallons US) of ethanol per year. The plant will replace the existing 25-year-old, 10 million liters per year facility, and is scheduled to be fully operational during mid-2007.
The new Minnedosa plant will be Husky’s second major ethanol facility in Western Canada. The Company is currently also building a 130 million liter per year facility adjacent to its heavy oil upgrader at Lloydminster, Saskatchewan. The Lloydminster plant is anticipated to be operational in the second quarter of 2006.
The new Manitoba plant will utilize about 350,000 tonnes of wheat per year to produce the 130 million liters of ethanol and approximately 126,000 tonnes of Distillers Dried Grains with Solubles (DDGS), a high protein, non-animal based livestock feed.
Husky has incorporated a number of environmental control measures and technologies in the facility’s design, including baghouses in the grain receiving and milling operations, state-of-the-art DDGS drying technology, and floating roofs on the ethanol storage tanks. The plant is eligible for C$10.4 million in funding from the Government of Canada’s Ethanol Expansion Program.
In June, the Company established a C$1-million endowment at the University of Manitoba for research in biofuels, with a focus on ethanol. In addition, Husky, in conjunction with the University, is applying to establish a Natural Sciences and Engineering Research Chair (NSERC) for wheat feedstock and ethanol production technologies, which if successful, would see Husky making a further contribution of $375,000 per year for five years to the University.