HENSALL — While there is still no construction date on the much-delayed Hensall ethanol plant, GreenField Ethanol says it remains committed to Hensall and still intends to build in the village.
That was the message Hensall residents heard at a public meeting Jan. 21 at the Hensall Arena hosted by the Municipality of Bluewater and GreenField. The $150 million Greenfield Ethanol plant, announced with much celebration several years ago, had a groundbreaking ceremony at the construction site adjacent to the Hensall District Co-op in March 2007. However, as GreenField founder and chairman Kenneth Field said in Hensall last week, the looming financial crisis resulted in the banks backing down on the $150 million loan the company needed for the project. However, Field said that situation will change, financing will once again become available when the economy recovers and he still intends on building an ethanol plant in Hensall.
Field can't say when that will be, though.
In his presentation to the public last week, Field said the company has already invested $20 million in the Hensall site. He explained the reason for the delay in building, saying that while GreenField had its $150 million in loans lined up, the company was called to Bay Street and was told, “there are no loans going ahead.” While he admitted the company was in denial for a while, Field said GreenField can understand the banks' reasoning for pulling back the loans, describing the recession as the worst since the Great Depression. He noted the collapse of major companies in the U.S. and the bailouts that took place, and added GreenField is “a strong, good company . . . I am just so pleased we still have a wonderful business.”
Field said the ethanol industry is profitable again and oil prices are up. He added Canada's Renewable Fuels Standard, being implemented Sept. 1, 2010, will mandate that gasoline in Canada include five per cent ethanol.
Field said Canada's ethanol production displaces 4.7 million barrels of imported foreign oil and gas each year. And responding to a belief that it takes more energy to make ethanol than is created from it, Field said, “It's not true. It's a myth.” He said a study from the University of Nebraska shows there is a positive net energy gain out of the creation of ethanol.
Field said ethanol use in gasoline is good for the environment and added corn growers also profit from ethanol, explaining that $300 million of corn will be bought this year to make ethanol in Ontario.
“Ethanol positively impacts at least 15,000 farms in Ontario,” information from GreenField states, adding ethanol also causes higher farm gate income.
While the Hensall plant was originally going to be a corn ethanol plant, Field said technology is moving rapidly and there are new developments in the ethanol world. He said the Hensall plant will probably use corn and cellulose to create ethanol. Field said cellulose ethanol is the “next big thing” in ethanol.
According to GreenField's website, cellulose ethanol “can be created from a variety of feedstocks that would otherwise be disposed of as waste materials.
The key ingredient is cellulose, a fibrous material that makes up most of the plant matter in biomass such as corn cobs, corn residue, wood chips, trees, municipal solid waste and pulp and paper industry wastes.”
During public questioning, Hensall's Larry Uyl asked if there will be enough corn to make ethanol and added there are Third World countries who need food.
Field said corn yields will increase rapidly in Ontario and he expects crops will double over the next 15 years.
“There is going to be lots of corn,” Field said, but added GreenField is exploring making ethanol from other sources as well.
Responding to the argument that there are hungry people around the world who could use the corn that is being used for ethanol, Field said the corn used for ethanol isn't corn that would be used for human consumption - it would be used for animal feed or other uses.
The subject of the new Hensall water pipeline was brought up by Hensall's Bill Bauer, who asked if GreenField will pay its share, which is more than $6 million. Field said GreenField has been making its payments and has every intention of fulfilling its financial obligations to Bluewater.
“I would ask you not to worry, sir,” Field said.
“We're here to build a plant and pay for our water.”
GreenField vice-president and chief financial officer Malcolm West said the company has signed a binding contract with Bluewater and is obligated to pay its share of the water pipeline whether or not the plant is built.
Larry Lynn of the Grain Farmers of Ontario asked Field if GreenField had a role in helping create a safety net for farmers. Field said the company has told the government it would like to help with that. He added he thinks it will be beneficial to have Huron-Bruce MPP Carol Mitchell as Minister of Agriculture.
When the announcement of the Hensall ethanol plant was originally made, it was said the plant was slated to produce 200 million litres of ethanol annually. Construction on the plant will create 150 jobs, while 40-50 permanent jobs will be created.
Field said at last week's meeting that the key when building is to use local people. He said he has found that if the company supports the community, the community will support the company.
“It's the right thing to do.”
Upon questioning from Varna Grain's Bev Hill, Field said the ethanol industry can survive without government mandates and incentive programs. He said governments will start putting a price on carbon and GreenField is in the business of carbon reduction. He said the alternative to breaking the addiction to carbon is the use of ethanol.
“Ethanol is the answer,” he said.
While at the end of his presentation Field admitted he doesn't know when the Hensall plant will be built, he said, “We want to do this. It makes sense for us to do this.
“The world will straighten out,” Field said.
“We own the land, we're happy we came to Hensall . . . You have a commitment from our company.”
Field said the last thing he wants is for people to feel GreenField has abandoned them.
“We don't want to let you down.”
Bluewater Mayor Bill Dowson said he believes the company is sincere and told the Times-Advocate GreenField has been paying for the water line. He said he hopes the plant is built “sooner rather than later.”
Field founded GreenField Ethanol in 1989 (then called Commercial Alcohols). The company is the largest manufacturer and distributor of fuel ethanol, industrial alcohol and alcohol-related products in Canada. In Canada, GreenField makes corn ethanol in Chatham, Tiverton and Johnstown and has a packaging plant in Brampton. The company also has operations in the United States in Connecticut, Kentucky and California.