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Cellulosic ethanol to be produced in Canada

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GreenField Ethanol and Enerkem have signed a Binding Term Sheet outlining their plan to produce cellulosic ethanol on a commercial scale. By expanding the availability of this new biofuel, the two companies will offer Canadians a greener, more affordable alternative to fossil fuels.

GreenField Ethanol and Enerkem agreed to terms that will see them collaborate 50-50 on joint projects to design, build and operate commercial cellulosic ethanol plants using Enerkem technology in specified geographic areas. The first plant location has been secured within Canada but will only be revealed in the coming weeks. A second plant is also in development.

Enerkem's technology converts biomass such as sorted municipal solid waste and urban wood residues into biofuels like cellulosic ethanol, synthetic gas and methanol. In doing so, it eliminates more than two tons of greenhouse gases for each ton of residues used as feedstock. More precisely, cellulosic ethanol has the potential to reduce GHGs by up to 87 percent. In fact, the federal government's commitment to require gasoline to contain at least 5 percent ethanol by 2010 will be tantamount to removing one million cars from Canada's highways each and every year.