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Posted on  

November 27, 2000

$100 million Corn Ethanol Plant comes to Varennes

Commercial Alcohols Inc., (CAI) President & CEO, Robert Gallant has announced that CAI will build an Ethanol plant in Varennes - The investment has a cost of approximately $100 million.

"This is a huge success story for the region," explained Gallant. "This is a superb initiative that includes Quebec farmers, the Province of Quebec through SGF, Petro Canada and CAI."

The plant will eventually employ over 50 full-time employees and is expected to be completed in twenty months. When fully operational, the plant will produce 120 million litres per year of ethanol to be blended with gasoline throughout Quebec at Petro Canada stations. Ethanol is widely used as an additive to gasoline that helps reduce green house gas emissions, provides for a cleaner burning fuel and increases octane.

The Province will play a key role in ensuring that this important project is developed. Société générale de financement du Québec - an economic development agency, will help fund the project by providing $25 million in financing.

"We are very pleased that Minister Landry and his Department are supporting this region and the project. This plant would not be possible without the support of the Province and the farming community," said Gallant.

Farmers are expected to benefit significantly from the development of the plant that will use up to 12 million bushels of Quebec corn every year. As a net exporter of corn, the region now has a new market for locally grown corn in its own back yard. Local farmers have invested in the project and will play a key role in the success of the plant.

Engineering plans are now being finalized and construction is expected to begin this winter. The plant will invest heavily in technology and will be one of the most modern ethanol plants in the world when completed.

"We look forward to being a part of the Varennes community and having a positive impact on this region's economy," said Gallant.

Commercial Alcohols is a privately held company and is the largest ethanol producer in Canada. As well as manufacturing and distributing fuel grade ethanol, the company is the biggest provider of alcohol for industrial, medical, cosmetic and beverage uses.



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