CALGARY - A site north of Innisfail, Alta., will be home to North America's largest biofuels refinery starting this summer when construction begins on a $400-million plant that will produce 300 million US gallons per year of ethanol, biodiesel and crushed canola.
The Calgary Herald has learned Dominion Energy Services, LLC along with New York-based private equity affiliates Riverstone Holdings LLC and The Carlyle Group will today formally announce plans for a 160-hectare site outside of Innisfail for the project.
"The rail infrastructure is massive, that's why we needed so much land," said Dominion president and chief executive Curtis Chandler.
"We have to be able to take unit car trains in, which are 111 cars, to cut down on our transportation costs."
The project has been under review by Alberta Environment since March and approval is expected in May, Chandler said.
"We're deeply into the permitting stage. We've had our permits for a month and a half and we're expecting (environmental) approval in May," said Chandler. "I'm very excited. It will be the largest facility in North America."
Dominion is a Florida-based firm with links to Calgary's natural gas industry - Chandler and his father bruce built the Alberta Hub natural gas storage facility near Edson - and alternative energy investments in Central Canada.
Riverstone-Carlyle is one of the largest U.S. private equity firms with $56.1 billion US under management that in March 2006 purchased the natural gas storage assets of Calgary-based EnCana Corp. in a $1.5-billion US deal.
"The rail access, close proximity to large quantities of feedstock and skilled local workforce made Innisfail an ideal location for our newest venture with Dominion Energy," said Riverstone's managing director, Stephen Schaefer.
"Biofuels are taking an increasing role in helping North America reduce our dependence on fossil and foreign fuels," Schaefer added.
Innisfail Mayor Ken Graham said Monday the project will give a major boost to his town, located 116 kilometres north of Calgary on Highway 2.
The plant is expected to create 400 construction jobs over the 12- to 16-month planned construction period and 90 full-time positions once the plant is fully operational by mid- to late-2008. About 200 indirect jobs will service the plant and its employees.
"There's going to be a lot of spin-offs, jobs, shopping in town. It will be good for the community," Graham said Monday.
"It's going to be a big, big project and I suspect there are going to be spinoff industries locating around it. It's going to be great for the farmers as well," he added, noting the facility will use wheat and canola as feedstocks.
When completed, the plant will be among the largest employers in the Innisfail area, joining the ranks of facilities owned and operated by companies such as insulation maker Johns Manville Canada Inc., pet products manufacturer Nestle Purina Canada Pet Care Canada Inc. and oilfield machinery maker NWP Industries Inc. (Northwest Pipe and Supply Co.).