By JOANNE HELMER of the Weyburn Review
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A final decision on construction of an ethanol plant proposed for the old distillery on Weyburn's southwestern boundary may be possible within the next few weeks. The Moose Jaw group that proposed the plant last spring is waiting to hear if the Saskatchewan government will change its new, protective ethanol legislation before proceeding. That legislation, called the Ethanol Fuel Act, has been placed in doubt because none of the larger plants proposed in the province have gone ahead this year. The ethanol act, amended Oct. 2002, will require vehicle fuel to contain an average of five per cent ethanol next year, starting April 1, 2004, and rising to 7.5 per cent as of Jan. 1, 2005. "We're just trying to get an indication on what, if anything, is being reviewed, so we have no start date yet," said Brad Hill, spokesman for NorAmera BioEnergy Corp. of Moose Jaw, on Monday. "I have no time line (for the start of construction)." The plant, which was originally to be constructed this spring, could still be ready to produce ethanol by next spring, he said. The Saskatchewan department of Industry and Resources says an environmental review has been completed on both the Weyburn and a $55 million plant near Belle Plaine, with approval granted. Hill said the plant is a "big undertaking." All three aspects, the regulatory, consumer and producer sectors, must be in line before it can start, he said. "A lot is going on behind the scenes. Hopefully, it will all be cleared up in the next little while," he said. A spokesman for the Saskatchewan department of Industry and Resources said Tuesday the department is monitoring the progress of several proposed plants before deciding whether a review of its legislation is necessary. Bob Ellis said a meeting between government and industry is expected in the next few weeks to determine if the start dates in the Ethanol Act must be modified. "If the plants are not coming on-stream in a timely fashion, we'll look at that and make adjustments as necessary," he said. Premier Lorne Calvert held a sod-turning on the Belle Plaine plant in Oct. 2002, announcing two similar plants were in the works for the Tisdale and Melville-Yorkton areas. The plants were to be constructed by Broe Industries and the government on a 60-40 cost-sharing arrangement. Broe has been unable to gather the rest of its financing. Husky Oil Ltd. also announced plans earlier this year for an ethanol plant at its Lloydminster operation. Hill said the case of mad cow, or bovine spongiform encephalopathy (BSE), in an Alberta cow that led to the closure of the U.S. border to Canadian red meat exports has had an affect on plans for the Weyburn plant but, by itself, loss of the feedlot industry as a market for the ethanol grain byproduct probably would not stop it. Ethanol produces a byproduct used as cattle feed. But the grain can also be sold to the dairy industry, noted Hill. "(Mad cow) creates other challenges but the market for the byproduct is still there." The U.S. and Mexico have since partially opened their borders to boxed boneless beef, but not to live cattle as yet. Weyburn Mayor Don Schlosser said last week the city has been paid for the old distillery. Everything related to the plan seems to be moving forward as expected, although there are setbacks, he acknowledged. |
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