Unless cellulose ethanol can command a price premium for any greenhouse gas (GHG) reductions achieved, then regardless of Manitoba ethanol mandates, suppliers are likely to choose the lower cost and higher emitting first-generation ethanol fuels.

Shell Canada Environmental and Regulatory Affairs Advisor Ed Brost indicated Shell had planned to apply for a Manitoba Environment Act license for the plant in late summer or early fall 2012. The plant would have created 70-100 jobs, and more than 300 farmers had already signed up to supply the facility with straw.

Brost said there was "no plans to restart the project," and that the decision to scrap the plan was a business decision, which "had nothing to do with anything in Manitoba. Both the Province and the community were receptive and generally supportive of Shell during the feasibility study. Shell appreciates the time and effort of all those who offered support and suggestions during the study."