Ethanol project choose city site
02/21/2003
Backers trying to raise money to build $ 70million plant on Powerline Road
BY LORI LTTTLETON AND MICHAEL-ALLAN MARION
EXPOSITOR STAFF /BRANTFORD
A $70million ethanol plant, expected to generate more than $50 million in annual revenue is proposed to be built in Brantford on Powerline Road, east of Oak Park Road.
The plant, which is expected to employ about 35 people and will take 12 to 14 months to build, is being spearheaded by the Integrated Grain Processors Co-operative, a local farmer-based group.
The facility will be built on a 30-acre parcel of land that is part of a 300-acre aggregate development, Mike Bryan off BBI International, a consulting firm hired by IGPC, confirmed Thursday. The property is currently unmined.
The co-op confirmed Thursday that the site on the city Brant County boundary beat out nine others that a search committee had been considering.
Others included land in the same area but on the Brant County side of the line, in Cainsville near Blossom Avenue, and near Princeton.
Joe Kloepfer, chairman of the site selection committee, said the Oak Park Powerline parcel of land won because it is next door to a power station and is supplied with water and natural gas.
"I think it's a great site. It's got everything we want," he said. "It's in an excellent location. It has access to (Highway) 403 and we wanted to be near a main interchange and it's close to the road so everyone will see it."
The location of the corn-ethanol processing facility is touted as being of major benefit to the economy of both the city and Brant County.
"I'm delighted about this and quite excited about the whole idea," Coun. Vince Bucci, chairman of city Council's community development committee, said Thursday evening.
"It's good to see something of this magnitude coming here. We'll have a facility that produces an environmentally friendly energy product and will be good for farmers in Brant who are quite well positioned to supply the resource."
Brant Mayor Ron Eddy pointed to the benefits of jobs for city and county residents, along with such marketable byproducts as carbon dioxide and livestock feed for cattle and hogs from the chaff of the production process.
"There will be a lot of spin-off effect from this," said Eddy. "That's really good news."
Bryan said that with the recent budget announcement concerning ethanol, the timing is right for the plant. Earlier this week, Ottawa announced $3 billion in new money for the environment, including commitments in renewable energy and ethanol.
"We're pretty confident that ethanol will end up with a reasonable chunk of money to develop in Canada," he said. "The timing of the plant is very good."
According to a feasibility study conducted by BBI International, the plant will consume about five per cent of all corn grown in Ontario, with about 12 per cent coming from a 50 to 60 kilometre radius of the plant. Currently, Ontario imports about 150 million liters of ethanol annually.
With the passing of the Kyoto protocol, by 2010, about 1.3 billion liters of ethanol will be needed annually in Canada, creating a market for about 100 million bushels of corn.
Tom Cox, IGPC chairman, said the support given to the ethanol industry in Tuesday's budget was encouraging. "It's a budget endorsement from the federal government and there's really
no better endorsement for a project like ours," he said.
Cox said since 200 people attended a public meeting in January at the Best
Western, there has been a "tremendous mount of interest" in the ethanol project.
A second public meeting was held in Oxford County on Jan. 29 and another meeting is scheduled for March 5, at 30 p.m., at the Copetown Community Centre.
As well, IGPC directors have planned a bus tour to Badger State Ethanol in Monroe. Wisc, from March 6 to 8. Participants will be able to speak with municipal officials, plant workers and others involved in the project.
Cox said that while the local ethanol project is often referred to as the "Brant ethanol project," it encompasses much more territory. "It's really a regional project and although Brant will be the home base, some of our directors are from Hamilton-Wentworth and Oxford County," he said. “In order for this project to succeed there has to be support from four or five counties."
About 10 days ago, IGPC received permission from the Financial Security Commission of Ontario to go ahead with its first public offering statement, Cox said.
The first offering is for $1.2 million that's needed for "soft" costs such as engineering and consulting fees, while a second offering, which will likely total about $35 million, will raise money for the physical plant. Cox said.
Cox said interested investors can still purchase shares for a minimum of $500 in the $1.2 million offering because it hasn't yet dosed.
Cox said IGPC's board is hoping to get many farmers and rural citizens involved in the project.
"With the (federal) budget, there is a real opportunity for people," he said. "It's pretty much certain there's going to be extra ethanol production and it's up to the people in this area if they want to own it. We really think they should.”
