Canada's government has confirmed its financial contribution in VANERCO, a joint venture partnership formed by Enerkem and GreenField to build and operate a cellulosic ethanol facility integrated with GreenField's existing ethanol plant in Varennes, Quebec.
Through Sustainable Development Technology Canada'a (SDTC's ) NextGen Biofuels Fund, $734,500 will support the initial development of the facility as a repayable contribution, an amount that could increase to $39.8 million, the federal governement said in a statement.
The plant could access the greater sum as it passes through project milestones and required governance approvals.
The future plant will be located at the site of GreenField's ethanol plant in Varennes, Québec, and will use Enerkem's proprietary technology to convert waste materials into ethanol and renewable chemicals. Its production capacity will be about 38 million litres per year.
"This project truly puts industrial waste to work, creating jobs in the community while producing as much as 38 million litres of ethanol a year. SDTC is proud to be a partner in this pioneering project," said Vicky Sharpe, SDTC president and CEO, in a September 27, 2013 statement to media. "Getting technologies such as this to a commercial scale will be crucial in helping Canada play a key role in the dynamic global cleantech marketplace, currently valued at$1 trillion," added Sharpe.
The VANERCO cellulosic ethanol plant will contribute to the ongoing development of the next generation biofuels industry in Canada. In turn, the growing sector of advanced biofuels stimulates the manufacturing sector, creates jobs, generates value from waste materials and reduces oil dependence, imports and greenhouse gas emissions while positioning Canada at the forefront of the global clean technology sector.
"Clean technologies which offer a true global alternative to fossil fuels emerge when industry pioneers, governments, venture capitalists, and academics work together to ensure a successful transition to the commercial stage," said Vincent Chornet, Chairman of VANERCO. "SDTC played a pivotal role by becoming the catalyst that helped all these players join forces. We are glad to see them on board with us in this commercial project."
The non-recyclable waste to be used at the VANERCO facility will come from institutional, commercial and industrial sectors, and from construction and demolition debris. Construction of the facility, which will use Enerkem's proprietary waste-to-biofuels technology, is planned to begin in 2014.