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$27 Million for Greener Fuel – The Québec Government Provides Financial Assistance for Varennes Cellulosic Ethanol L.P.

Varennes, February 6, 2012 – Clément Gignac, Minister of Natural Resources and Wildlife and Minister responsible for the Northern Plan, together with Sam Hamad, Minister of Economic Development, Innovation and Export Trade and Minister responsible for the Capitale-Nationale region, have announced $27 million in financial assistance to be granted to Varennes Cellulosic Ethanol L.P. This financial contribution will enable construction of a plant that will produce up to 40 million litres of fuel ethanol per year.

 

“By supporting this project financially, we are promoting the development of a Québec-based option for the production of renewable fuel,” noted Clément Gignac. “This project, valued at around $90 million, will make it possible to avoid importing the equivalent of 33 million litres of gasoline each year. It should also allow us to prevent the emission of some 110,000 tonnes of CO2 annually by using ethanol instead of gasoline, which is equivalent to removing 32,000 vehicles from our roads. In this way, we are strengthening the security of Québec’s energy supplies while also fostering sustainable development.”

 

“Québec has to maintain its leadership in sustainable development and support businesses that wish to position themselves on the international stage. The new-generation fuel market has a bright future. With solid, well-structured projects such as the one planned by Varennes Cellulosic Ethanol, Québec will achieve its goal of having an economy that generates wealth while remaining eco-friendly,” stated Sam Hamad.

 

Fuel ethanol results from the processing of non-homogeneous cellulosic residual materials, primarily mixed residuals such as industrial, commercial and institutional waste, as well as waste from construction, renovation and demolition sites. These materials are processed by means of an innovative, second-generation technique developed in Québec. The plant will become operational in 2014.

 

“This project will result in the creation of almost 40 new direct jobs and an equal number of indirect jobs, as well as over 130 jobs while the plant is being built. The technology developed by Enerkem is already renowned as one of the most promising ones in the world. I’m very happy that Montérégie is the site of a project with so much potential,” said the Minister of Tourism and Minister responsible for the Montérégie region, Nicole Ménard.

 

The anticipated investment in the construction of the plant is approximately $90 million. The Québec government will provide $27 million in financial assistance, $18 million of which is to come from the Ministère des Ressources naturelles et de la Faune and $9 million in the form of a loan from Investissement Québec. This financial assistance granted to Varennes Cellulosic Ethanol L.P. is in keeping with the goals of the Québec Energy Strategy 2006–2012.

 

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Sources:

Jolyane Pronovost
Press Officer
Office of the Minister of Natural
Resources and Wildlife and Minister responsible for the Northern Plan
Tel.: 418 643-7295

 

Harold Fortin
Press Officer
Office of the Minister of Economic Development, Innovation and Export Trade
Tel.: 418 691-5650

 

Gabriela Quiroz
Press Officer
Minister of Tourism and Minister responsible for the Montérégie region
Tel.: 450 672-1885

 

Information:
Investissement Québec
1 866 870-0437 

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Contact your expert

Marie-Ève Savard

Government Relations and Public Affairs Advisor, Montréal

514 876-9412

Contact your expert

Marie-Ève Savard

Government Relations and Public Affairs Advisor, Montréal

514 876-9412