Ontario Railways can play Important Role in Province's Ethanol Industry
With the Government of Ontario recently announcing funding and operating grants for new ethanol plants in the province, railways could play a big role in the sustainability of Ontario's emerging ethanol industry.
The ethanol plant funding is all part of the Ontario Ethanol Growth Fund and a mandate to reduce greenhouse gas emissions by blending ethanol in the province's gasoline. What it means for the railway lines is more industrial business.
The Integrated Grain Processors Co-operative was one recipient of funding to open a plant in Aylmer, Ontario next year. Cox said it should produce about 150 million litres of ethanol a year, and will need about 15 million bushels of corn to do it.
But he said the real prospect for railways will be the outgoing co-product and materials. In addition to ethanol, which should mostly remain in Ontario to be blended, a co-product that comes from the manufacturing process is distiller's grain.
Distiller's grain, primarily used as dairy cattle feed, should help to sustain other agricultural sectors as well. Doug Hayston, the director of marketing for Trillium Railway said access to rail infrastructure gives it the potential to be shipped anywhere.
Trillium's St. Thomas and Eastern line will be servicing the Aylmer plant, and interchanges with CN, Canadian Pacific Railway and Norfolk Southern Railway. Hayston said this is one reason why Aylmer was a strong candidate for the site.
The cattle feed market is becoming increasingly saturated with the number of ethanol plants starting up in Canada and the United States. He said they will soon have to find alternative marketplaces to ship to.
Chris Deline, the logistics manager for Commercial Alcohols Inc.'s Chatham plant, said rail access allows them to look for different geographic areas, as well as entirely new markets like turkey and poultry farms, where they can send distiller's grain.
The company has utilized this and is building a new plant, located in Hensall, with access to the Goderich-Exeter Railway. Their largest plant in Chatham, which produces both fuel and commercial grade ethanol, is located on the Canadian Pacific Railway line.
Even with a growing demand for ethanol, Deline said most of the alcohol is not shipped by rail. He said they do have clients who request rail shipping and they do have the capability to do so, but many blending sites do not have the necessary infrastructure to receive railcars.
He reiterated that shipping out distiller's grain provides the most opportunity for railways and he also indicated there could be a demand for bringing in corn with the growing number of plants in Ontario.
The ethanol plant funding is all part of the Ontario Ethanol Growth Fund and a mandate to reduce greenhouse gas emissions by blending ethanol in the province's gasoline. What it means for the railway lines is more industrial business.
The Integrated Grain Processors Co-operative was one recipient of funding to open a plant in Aylmer, Ontario next year. Cox said it should produce about 150 million litres of ethanol a year, and will need about 15 million bushels of corn to do it.
But he said the real prospect for railways will be the outgoing co-product and materials. In addition to ethanol, which should mostly remain in Ontario to be blended, a co-product that comes from the manufacturing process is distiller's grain.
Distiller's grain, primarily used as dairy cattle feed, should help to sustain other agricultural sectors as well. Doug Hayston, the director of marketing for Trillium Railway said access to rail infrastructure gives it the potential to be shipped anywhere.
Trillium's St. Thomas and Eastern line will be servicing the Aylmer plant, and interchanges with CN, Canadian Pacific Railway and Norfolk Southern Railway. Hayston said this is one reason why Aylmer was a strong candidate for the site.
The cattle feed market is becoming increasingly saturated with the number of ethanol plants starting up in Canada and the United States. He said they will soon have to find alternative marketplaces to ship to.
Chris Deline, the logistics manager for Commercial Alcohols Inc.'s Chatham plant, said rail access allows them to look for different geographic areas, as well as entirely new markets like turkey and poultry farms, where they can send distiller's grain.
The company has utilized this and is building a new plant, located in Hensall, with access to the Goderich-Exeter Railway. Their largest plant in Chatham, which produces both fuel and commercial grade ethanol, is located on the Canadian Pacific Railway line.
Even with a growing demand for ethanol, Deline said most of the alcohol is not shipped by rail. He said they do have clients who request rail shipping and they do have the capability to do so, but many blending sites do not have the necessary infrastructure to receive railcars.
He reiterated that shipping out distiller's grain provides the most opportunity for railways and he also indicated there could be a demand for bringing in corn with the growing number of plants in Ontario.
posted by Ottawa Gas Prices | 9:00 PM
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