Biodiesel plant planned for Lloydminster

Vancouver-based renewable fuel supplier Canadian Bioenergy Corp. is considering building a biodiesel plant in Lloydminster, with major U.S. crop processor Archer Daniels Midland Co.

CALGARY — Vancouver-based renewable fuel supplier Canadian Bioenergy Corp. is considering building a biodiesel plant in Lloydminster, with major U.S. crop processor Archer Daniels Midland Co.

The plant, which would produce 265 million litres of canola-based biodiesel per year, would be located at the site of ADM’s existing canola crushing plant, Canadian Bioenergy announced Tuesday.

A final price tag for the plant has not yet been worked out, chief executive Doug Hooper said.

“What we do know, though, is that it’s quite a bit more capital and operating cost-efficient to integrate a plant within a canola crushing complex,” he said.

The company is planning a standalone 225-million-litre-per-year plant near Edmonton at an estimated cost of $90 million.

It will wait until the Lloydminster feasibility study is complete before making a decision on going ahead with the Edmonton-area one.

“It’s quite an improvement by virtue of getting those synergies,” Hooper said.

Much of Alberta’s construction activity has ground to a halt, as energy companies facing deteriorating economic conditions scale back or cancel their plans to build oilsands upgraders, refineries and petrochemical plants.

But Hooper said there are advantages to breaking ground on a new project during a recession.

“There’s some softness in the labour market that both gives you access to the best crews as well as keeps some containment on the labour costs,” he said.

The cost of steel and other construction materials is also down.

And the lower Canadian dollar means it will be easier to export the biodiesel to the United States.

On the flipside, getting access to financing has been tough for many companies during the credit market freeze.

“That will definitely be one of the more challenging implications of the recession and the economic downturn,” Hooper said.

“We’ll be looking at primarily the equity markets, I think, for financing this project.”

Ottawa and many provincial governments have embraced biofuels as part of their strategies to cut down on greenhouse gas emissions, but that approach has been controversial.

Critics say using crops to make fuel drives up the price of food, and some have wondered whether biofuels are even effective in fighting climate change since they require so much energy to produce.

Manitoba, Saskatchewan and Ontario have already implemented their own renewable fuel standards, and new rules are set to come into effect next year in Alberta and British Columbia.

Just Posted

City Hall Park construction begins next week

Construction to update Red Deer’s City Hall Park is set to begin… Continue reading

PHOTOS: Jazz at the Lake begins

The 16 annual event began Friday and runs until Sunday in Sylvan Lake

Photos: Lunchtime tunes on Alexander Way

Final concert of the summer

Clearwater regional firefighters in B.C.

Crew operating west of Prince George

PHOTOS: Samson Cree Nation Pow Wow

The Samson Cree Nation hosted its annual Pow Wow, celebrating youth last weekend

WATCH: Feasting at Red Deer Ribfest this weekend

Ribfest runs until Sunday at Rotary Recreation Park

Street Tales: Life is filled with unlearned lessons

There are days that I almost believe evolutionists in that we are… Continue reading

Canadians believe in immigration but concerned about asylum seekers: study

OTTAWA — Canadians are generally supportive of current immigration levels, a survey… Continue reading

Quebec announces plan to compensate taxi drivers after Uber’s arrival

MONTREAL — The Quebec government has outlined how it intends to compensate… Continue reading

Hospitals to see ‘delays’ in care after losing Saudi students, health group says

OTTAWA — The loss of Saudi Arabian resident physicians in Canada’s hospitals… Continue reading

PHOTOS: B.C. city wakes up to darkness under wildfire smoke

The rest of the province also dealing with thick haze as smoky skies continue

Death Valley worker has seen highest, lowest temperatures

LAS VEGAS — Thousands of tourists descend on Death Valley each summer… Continue reading

Banff’s Sunshine ski resort upset with proposed guidelines from Parks Canada

BANFF, Alta. — An internationally known ski resort in Banff National Park… Continue reading

Folk singer Ian Tyson cancels show due to ‘serious medical situation’

TORONTO — Canadian folk singer-songwriter Ian Tyson has cancelled his appearance at… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month