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Husky to Build Second Major New Ethanol Facility in Canada

27 October 2005

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.

October 27, 2005 in Canada, Ethanol | Permalink | Comments (9) | TrackBack (0)

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Comments

10 million liters currently to 130 million liters is 13 times, not 10.

I'm just wondering what 1 liter of ethanol sells for, and what their profit per liter will be. It might take 10 years to pay off the capital costs.

10 million liters currently to 130 million liters is 13 times, not 10.

I'm just wondering what 1 liter of ethanol sells for, and what their profit per liter will be. It might take 10 years to pay off the capital costs.

Almost 500 000 tons of wheat and other grains to produce 130 million liters of ethanol fuel, while millions die every year from hunger, does not seem very responsible. However, it will help to reduce pollution and keep more gas guzzlers on American and Canadian roads.

On the positive side,10 or 20 + more plants like this one could certainly eliminate Canadian grain surpluses and eventually increase historically low prices paid to Canadian farmers. After all, feeding the poors and hungry may not be our prime responsability. Let somebody else do it or let them .......

However, cellulosic ethanol + plug-in hybrids + wind power + solar power + solar hydrogen would make much more sense. I guess that common sense does not always prevail. Will 'the people' one day decide that there are better ways..... Yes, may be...

Millions are dying from hunger not for a lack of production of food, nor from a lack of capacity for production. People are dying from hunger due to war (people can't stay in one place long enough to cultivate a crop) and warlords who prevent foreign aid from getting to the people.

Using agricultural crops for fuel production will help increase the value of those crops, which actually helps the third world, because the first world has been producing crops so cheaply, that the small farmers in the third world can't compete. If the price of wheat, soy, corn, rice, and other crops goes up due to demand from the fuel production sector, this will help the small farmers immensely.

Caoimhan...have you tried to grow wheat in the expanding Sahara desert or the barren hills of Ethiopia lately? I agree with you that wars don't help but expanding desert lands, fed in part by our industrial pollution and deforestation policies,is also part of the problem.

With regards to unreal low prices for food products (at the farmer level) and unfair competition with poor countries, industrial nations farm subsudies (up to 80% in some countries) may be the principal reason. Poor countries, that cannot afford to give farm subsudies, cannot compete, even with good agricultural land and no wars. We make sure that poor countries with poor agricultural land will never compete. And we call that FREE market economy...

There's a misconception here that needs to be cleared up. Use of crops for ethanol production isn't necessarily a "food vs. fuel" issue. Ethanol is produced from fermenting the starches in the crop, but that process does not affect proteins also in the crop. The following sentence is excerpted from an article in today's FuelsandVehicles.com, talking about a new ethanol plant going in in Nebraska:

"Ethanol plant fossil fuel requirements are further reduced because high protein slurry, left over after the starch in the corn has been fermented, is piped across the street where it is fed to the cattle who provide the biogas feedstock."

In this case the leftover proteins are being used to feed cattle, but there's no reason they couldn't also be used to bolster human food (ignoring the potential for eating the cattle themselves, which are really only a first-world food source).

A systems approach, as used by the system in the above excerpt, can allow us to address both of these pressing needs (food and fuel) simultaneously and should be the standard design approach for all future infrastructure.

Shirley...what is the percentage of 'leftover' proteins vs the total proteins in wheat and other grains used to produce ethanol? You already know that using 'leftover' proteins or grain to feed cattle to produce meat increases the total proteins required by a factor of 10+ and is not very efficient , to say the least.

Frankly, cellulosic ethanol would be a much more efficient way to produce fuel from poor land areas. For example; switchgrass production (for cellulosic ethanol)is simpler and less demanding than corn, wheat and other eatable grains production. Who knows, leftovers may be uasable too.

I believe (if I have read their press release correctly) they are using mainly non-food grade wheat and corn etc and waste from processing to produce the ethanol, in which case it might have otherwise been disposed of, burnt, or left to rot. If so, making fuel and feed out of it is probably a better use for it.

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