Shell Canada has cancelled plans for a cellulose ethanol plant in Portage La Prairie, Manitoba. Plans at an Ottawa based Iogen Energy Corporation cellulose ethanol demonstration plant, with Shell Canada as partner, have also been scaled back.
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."
View May 1, 2012 Ottawa Citizen article
View April 30, 2012 Shell Canada press release
View April 30, 2012 Globe and Mail coverage
View April 30, 2012 Winnipeg Free Press coverage
View April 30, 2012 Reuters coverage
View more on Manitoba Wildlands Addressing Climate Change page
Shell Canada, Globe and Mail, Ottawa Citizen