ADM and Canadian Bioenergy consider biodiesel plant
Biodiesel supplier Canadian Bioenergy and crop-processing giant Archer Daniels Midland are carrying out a joint feasibility study that could see Canada's largest canola biodiesel plant built in Alberta.
If the project proceeds, the companies will build the plant on the site of ADM's canola-crushing plant in Lloydminster and produce 265 million litres a year.
The plant would need an annual supply of 240,000 tonnes of canola oil, crushed from about 600,000 tonnes of seed. Canada produced a record 12.6 million tonnes of the yellow-flowering crop last year.
Canadian Bioenergy has been planning a 225 million litre per year canola biodiesel plant near Edmonton, Alberta, next to Bunge Canada's oilseed-crushing plant.
The company will re-evaluate that project once the feasibility study is completed on the project with ADM.
The Lloydminster plant would be integrated into the ADM crushing facility, in contrast to the Edmonton project which would see canola oil piped to a nearby stand-alone biodiesel plant owned solely by Canadian Bioenergy.
ADM and Canadian Bioenergy would jointly own and operate the Lloydminster facility.
The feasibility study will estimate costs of building the Lloydminster plant and ways to raise capital through a mixture of equity and possibly debt and government programmes.
If the project proceeds, construction could start in Q4 this year and finish by Q1 2011.
If the project proceeds, the companies will build the plant on the site of ADM's canola-crushing plant in Lloydminster and produce 265 million litres a year.
The plant would need an annual supply of 240,000 tonnes of canola oil, crushed from about 600,000 tonnes of seed. Canada produced a record 12.6 million tonnes of the yellow-flowering crop last year.
Canadian Bioenergy has been planning a 225 million litre per year canola biodiesel plant near Edmonton, Alberta, next to Bunge Canada's oilseed-crushing plant.
The company will re-evaluate that project once the feasibility study is completed on the project with ADM.
The Lloydminster plant would be integrated into the ADM crushing facility, in contrast to the Edmonton project which would see canola oil piped to a nearby stand-alone biodiesel plant owned solely by Canadian Bioenergy.
ADM and Canadian Bioenergy would jointly own and operate the Lloydminster facility.
The feasibility study will estimate costs of building the Lloydminster plant and ways to raise capital through a mixture of equity and possibly debt and government programmes.
If the project proceeds, construction could start in Q4 this year and finish by Q1 2011.
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