Federal and Provincial governments unveil a new plan to help communities and feed lot owners decide whether they should enter the ethanol industry.

 

A new business template will help communities decide whether building an ethanol plant is right for them.

Funded by the province and the government of Canada, this particular business model focuses on an ethanol plant combined with a feedlot.

Lionel Labelle is the president of the Saskatchewan Ethanol Development Council and is excited to hear about the program. "It’s a 20 million litre ethanol facility combined with a 20 thousand head cattle feed lot model. Proponents that are part of this now have a very unique financing tool that they can work with on their computer and it has 800 plus variables. For example if you want to change the price you pay for gain or the price of interest rates or the price for natural gas you can do that instantly and get a sense of the profitability of this facility."

The federal government recently committed a 5% per cent blend of ethanol in our gasoline by 2010,