An $80-mission investment in Saskatchewan's future

Source: Saskatchewan Agriculture and Food

The Government of Saskatchewan recently announced that it was investing up to $80 million to assist producers and communities in the construction and expansion of transportation ethanol or biodiesel (biofuels) production facilities in Saskatchewan.

As a result of the province's interest in further developing the bio-fuels industry, the Saskatchewan Biofuels Investment Opportunity (SaskBIO) Program was born.

SaskBIO's timeframe is set to span four years and provide repayable contributions of up to $10 million per project. An additional $2 million per year will also be provided for biofuels and bio-products research and development.

"We were the first province in the country to mandate ethanol use, and we took the lead on the production of biofuels several years ago," said Ken Magnus, Manager of Strategic Projects with Saskatchewan Regional Economic and Co-operative Development. "Now that the provincial industry is producing enough ethanol to meet our 7.5-per-cent-blend provincial mandate, the next phase-SaskBIO-is to help producers expand into the national market."

Magnus says momentum has been building for biofuel use on a national basis. "Hopefully there will be a mandate or standard for biofuels on a national scale in the near future."

It is felt that the industry has tremendous growth potential to supply provincial, national and export sales. "We want to keep our eye on the ball to make sure that we have the opportunity for Saskatchewan's production to fill the void that now exists," Magnus stated.

SaskBIO was created to provide an opportunity for farmers and communities to participate in the value-added biofuels industry in Saskatchewan through investment ownership in biofuel facilities.

Furthermore, the program will ensure that Saskatchewan is an attractive jurisdiction in which to build a sustainable biofuels industry.

Corporations, individuals or partnerships are eligible to apply for funding. However, applicants must meet a couple of requirements. First, applicants must have a minimum of five per cent farmer/community investment. Second, the minimum annual production capacity of a new facility, or the increased capacity of an existing facility, must be at least two million litres per year.

"One of SaskBIO's goals is to create a situation where a higher level of local ownership becomes an incentive to access the program," Magnus said. "Therefore, production facilities will be owned by Saskatchewan people."

The expansion of the biofuels industry in Saskatchewan is expected to create more jobs and economic spin-offs, develop new markets for agricultural producers, decrease impact on the environment, and create new opportunities for the provincial research community.

Magnus adds that these benefits will extend well beyond the farm gate. "The province's target is to be producing one billion litres of ethanol and 400 million litres of biodiesel per year by 2015. If we can achieve that goal, it will certainly be a huge boost for the economy, generating both urban and rural opportunities province-wide," he said.

Magnus believes this is a unique opportunity where Saskatchewan is in the right place at the right time. "If you look at what is going on globally, production of renewable fuels is real and it is on. Here we have almost half of the arable land in the country. Therefore, we produce nearly half of the feedstock for biofuels, mostly wheat and canola," he stated.

"So if Saskatchewan has an opportunity to be a player in that marketplace, which we certainly do because of our natural advantages, we should take advantage of it. Whether it is an ethanol plant or a widget factory, any time you end up with an industry that grows in your province and that will exceed a billion dollars worth of investment, that's a good thing."

For more information, contact:

Ken Magnus, Manager of Strategic Projects
Saskatchewan Regional Economic and Co-operative Development
Phone: (306) 787-4484
E-mail: ken.magnus@gov.sk.ca