For immediate release: 15 June 2006

MCGUINTY GOVERNMENT BOOSTS ONTARIO'S ETHANOL INDUSTRY
Minister Dombrowsky Congratulates Successful Applicants For Ontario Ethanol Growth Fund

AYLMER - The McGuinty government is supporting the renewable fuels industry by investing $32 million in the construction of three new ethanol plants, Minister of Agriculture, Food and Rural Affairs Leona Dombrowsky announced today.

"This government believes that families and farmers in rural Ontario should have access to good jobs and economic opportunities," said Dombrowsky, who visited a farm with representatives of the Integrated Grain Processors Co-operative (IGPC). "Today's announcement is good news for Ontario's farmers, the environment, and our economy. It will help all Ontario families breathe cleaner air."

The government investment will support the construction of three new ethanol plants in Aylmer, Hensall and Cornwall, helping Ontario lead the way in the development of a successful Canadian ethanol industry. The funding is part of the $520-million Ontario Ethanol Growth Fund, which will also provide annual operating grants worth up to $60 million annually for the three new plants, as well as facilities in Chatham and Collingwood.

Ontario's Renewable Fuels Standard requires that all gasoline sold in the province contain an average of five per cent ethanol by 2007. When added to gasoline, ethanol helps to mitigate climate change by reducing greenhouse gas emissions, results in cleaner vehicle exhaust and reduces our dependency on non-renewable fossil fuels.

"The Ontario Ethanol Growth Fund is exactly what our industry needs - it provides the capital that will help us get the shovel in the ground," said Tom Cox, Chair of the Integrated Grain Processors Co-operative. "I'm looking forward to building this industry with IGPC members, the local corn growers and the people of Aylmer."

Other McGuinty government initiatives for rural Ontario include:

• Providing $800 million over the past three years for farm income stabilization
  
• Investing over $19 million through the Rural Economic Development Program
  
• Investing $400 million this year for road and bridge repair and upgrading, with an emphasis on rural and northern municipalities.

"These exciting projects will create new jobs and lead to new investments in rural Ontario," said Dombrowsky. "The people behind these projects are truly forward-thinking individuals who are developing a strong, bio-based economy that will bring new opportunities to Ontario."

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Contacts:
Chris Flavelle
Minister's Office
(416) 326-3072

Dave McLeod
Communications Branch
(519) 826-3198

ONTARIO ETHANOL GROWTH FUND: INVESTING IN THE FUTURE

Building a domestic ethanol industry in Ontario could lead to private-sector investments of up to $500 million in rural Ontario, and create as many as 400 jobs. The key to accomplishing this goal is managing the risks associated with fluctuating corn, crude oil and ethanol prices. The Ontario Ethanol Growth Fund (OEGF) recognizes that need and will help investors to better manage those risks by allowing fluctuating levels of support from year to year.

The twelve-year $520-million OEGF has two main components:

• Capital Grants offset a portion of the cost of constructing ethanol production facilities.
  
  
• Operating Grants will be available from 2007 until 2017 to promote ethanol production by helping industry manage fluctuating market conditions.

A request for proposals issued in October 2005 yielded 12 applications. Following a due diligence review process, capital and operating grants were awarded as follows:

Integrated Grain Processors Co-operative (IGPC), a predominantly farmer-owned co-operative, will construct an ethanol plant with an annual capacity of 150 million litres in Aylmer, Ontario. IGPC was awarded a $14-million capital grant and operating assistance for 145 million litres of ethanol production annually.

Blackstone Energy Services Inc. will retrofit the former Nacan Collingwood Corn Starch Facility and was awarded operating assistance for the production of 50 million litres of ethanol annually.

Seaway Grain Processors Inc., a wholly-owned subsidiary of Seaway Valley Farmers' Energy Co-Operative Inc., will construct an ethanol plant with an annual capacity of 65 million litres in Cornwall, Ontario. Seaway was awarded a $6-million capital grant and operating assistance for 65 million litres of ethanol production annually.

Commercial Alcohols Inc. (CAI) is one of Canada's largest producers of ethanol and operates its fuel ethanol plant in Chatham. CAI plans to build a second facility in Hensall, Ontario and was awarded a capital grant of $12.5 million to assist with the construction. CAI was also awarded operating assistance for 100 million litres of ethanol production at the Chatham plant and for 190 million litres at the Hensall facility annually.

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Contacts:
Christopher Flavelle
Minister's Office
(416) 326-3072

Oswald Zachariah
OEGF Secretariat
(519) 826-4541