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Corn Producers to be Unaffected by Ethanol Expansion
CANADA - Corn producers have no expectations of capitalising much from the heightened prices as a result of ethanol production expansion, according to local farmers. But, more ethanol production is good for the entire industry, they say.
"I won't get any more money for my corn, even though I live right beside the ethanol plant," said Tom Wilson, Lambton's representative for the Ontario Corn Producers Association.
Suncor Energy has announced a $120-million expansion that will double existing capacity at the facility. And Northern Ethanol is preparing to build a second plant, that will also produce up to 400 million litres of fuel annually, reports The Observer.
That will add to the demand for locally-grown corn and means local farmers like Wilson won't have to sit on their crops and wait for a good price.
When the Suncor expansion is complete in late 2009, ethanol production will jump to 400 million litres a year from the current 200 million litres a year, keeping the St. Clair facility the largest ethanol plant in Canada. Northern Ethanol is planning another facility just as large.
Company spokesperson Jason Vaillant said up to 80 per cent of the corn used for the current facility comes from Ontario, with the bulk coming from Lambton, Kent and Essex counties.
The expansion of the plant addresses government regulations for gasoline. The provincial government requires that gasoline sold in Ontario contain an average of five per cent ethanol.
The expansion comes at a time when the United Nations is calling for a moratorium on projects that use food as a feedstock.
View The Observer story by clicking here.
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