Ethanol Plant Heartens Tobacco Territory

Source from:  Fri, June 16, 2006 By DANIELA SIMUNAC, FREE PRESS REPORTER 06/19/2006

An $87-million ethanol plant will soon sprout here, near a doomed tobacco plant, helping to churn out an environmentally friendly fuel. The Ontario government is dishing out $32.5 million to help with construction costs of three new ethanol plants, including one here and others in Hensall and Cornwall. The new plants, which will turn corn into fuel, are expected to create 400 permanent jobs, Agriculture Minister Leona Dombrowsky said in Aylmer yesterday. "This is good news for rural economies, it is good news for farmers, it is good news for the environment," she said. The new facilities will boost to five the number of ethanol plants in Ontario. Others are already operating in Chatham and Collingwood. For Aylmer, whose Imperial Tobacco factory is expected to close in about a year, yesterday's announcement was a welcome shot in the arm. "It gives the community something to get excited about," said Tom Cox, chairperson of the Integrated Grain Processors Co-operative, which will operate the Aylmer plant. "We've had a great reception in Aylmer, largely because the community has lost Imperial Tobacco," he said. Construction of the plant is expected to begin later this year and to take 14 months. Gerry Vanderwist, a grain farmer who was at yesterday's announcement, welcomed the new investment, saying profits can't help but trickle down to corn producers in the area. Some corn producers, angry about cheaper U.S. imports flooding the market, have complained in the past about ethanol producers, including a Chatham plant, using too much U.S. corn and not enough of the Ontario crop. While Ontario ethanol plants aren't required to buy Ontario corn, Dombrowsky said she doesn't foresee a problem because two of the five successful applicants for provincial grants are industry co-operatives. "I would expect that they are going to look for ways to include members of their community when purchasing their feedstock." By 2007, all gasoline sold in Ontario will be required to contain an average of five per cent ethanol. Added to gas, ethanol helps to reduce greenhouse gas emissions, resulting in cleaner air and reducing dependency on fossil fuels. Ethanol has become a growth industry in North America. Besides the Ontario plants, 97 are operating in the U.S. and another 33 are under construction there. The co-operative behind the Aylmer venture is made up of farmers, grain elevators, community members and local businesses looking for ways to make up for losses in the agriculture industry. Enditem