ETHANOL PLANT BACKERS GIVEN FUNDING BOOST
BROCKVILLE _ The Ontario Government will provide
funding to allow Seaway Valley Farmer’s
Energy Co-operative to complete an agreement
with a prominent financial institution for its
proposed ethanol production facility, Leeds-Grenville
MPP Bob Runciman announced today.
Runciman said he is confident that Seaway Valley
has resources now to finalize a funding arrangement
with First Treasury Financial Inc. of Toronto.
Construction on the $51 million facility could
begin in Cornwall in the next 60 to 90 days,
said Gaylord (Bud) Atkins, president of the
co-operative.
Runciman and John Baird, Minister of Energy,
helped broker a deal where Seaway Valley can
use the interest accrued on its escrow account
that contains a $3 million grant approved by
the Ontario Government a number of years ago.
The Ministry of Agriculture and Food will oversee
financial arrangements during the process of
finalizing a contract between the company and
the financial institution.
Seaway Valley was formed in 1992 to develop
new markets for Eastern Ontario’s corn
production. There are more than 2,800 shareholders,
many of them farmers, who purchased shares in
the company worth $16 million.
While there is general consensus on the value
of ethanol as a means of protecting the environment
through reduced fuel emissions, the company
has had an extremely difficult time arranging
financing in the private sector. The signing
of the Kyoto Accord and a new focus on curbing
air pollution has drawn renewed interest in
Seaway Valley’s project.
The Ontario Government supports the use of
ethanol fuel and in 1996 approved a $3 million
grant to help with construction costs of the
plant. The money has been in an escrow account
since.
Runciman said he is pleased the project will
be able to move forward.
“More than 2,800 Eastern Ontario shareholders
have proven their commitment to the environment
and at the same time to providing a stable market
for corn producers through raising more than
$16 million in stock purchases,” said
Runciman.
This plant will be the second one in Ontario
although Runciman believes more will be built
in the future as the country becomes more committed
to reducing fossil fuel emissions.
Media Contact:
Don Swayne
Constituency Executive Assistant
(613) 342-9522
