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Commercial Alcohols awarded provincial ethanol grants

Grants expected to boost CAI expansion plans

TORONTO

The provincial government today awarded Commercial Alcohols (CAI) with an operating grant as part of the province's Ethanol Growth strategy. The province will provide operating grants to CAI through the Ontario Ethanol Growth Fund for a period commencing in 2007 and ending in 2016.

As a result of the province's ethanol program, CAI will develop a 200 million-litre ethanol plant in Southwestern Ontario that is slated to begin delivering ethanol to the Ontario marketplace in 2007.

"This is a huge boost to the expansion plans for CAI," said CAI Vice President, Bliss Baker. "We are grateful to Premier McGuinty and the provincial government for their unrelenting commitment to renewable fuels and ethanol," added Baker.

The CAI project will deliver 200 million litres of ethanol into the Ontario gasoline market, to meet the demand created by the Provincial Renewable Fuels Standard ( RFS ) that takes effect in 2007. The RFS will create a new market for over 750 million litres of ethanol beginning in 2007.

"CAI expects to execute an ambitious expansion plan over the next several months. We have secured the best sites in Eastern Canada to build plants, and as a result of today’s announcement, we are getting ready to roll out this expansion plan," Baker explained.

"I cannot say enough about the support the ethanol industry has received from people like Carol Mitchell, M.P.P. from the South Huron area, Minister Broten and Minister Dombrowsky," Baker said. "These people have shown an incredible amount of commitment to ensure that the Premier’s goal of having renewable fuels in the province's gasoline pool is achieved."