Date: April 8, 2008
Contact: Jim Boxall, President ENSASK Biofuels Ltd.
Office: Box 1688, TISDALE, Saskatchewan S0E 1T0 306.873.2605
ENSASK Biofuels Cancels Ethanol Project
(Tisdale, Saskatchewan, Canada): ENSASK Biofuels Ltd. today reported that it has not been able to secure the necessary additional producer equity and / or strategic partnerships essential to continue the development of the 104 million litre wheat ethanol plant.
In late 2006 and early 2007 ENSASK was able to raise $5.18 million in initial seed capital along with conditions to access further capital from original investors plus a project site from Tisdale Alfalfa Dehy Ltd. Initial funds were utilized to develop detailed engineering and cost estimates and further develop the business case for a wheat ethanol facility near Tisdale, Saskatchewan. A full engineering package was prepared, Class 3 cost estimate developed, and financing developed based on the proposed equity levels.
The significant progress ENSASK had made was bolstered by the existing buildings and infrastructure at the site, the approval already in place under the SaskBIO provincial program and steady progress being made in the application under the ecoABC federal producer investment program.
Interest in additional local investment dramatically diminished in part due to recent record fluctuations in grain feedstock prices. A number of companies are interested in participating in the development of the industry when national legislation for renewable fuel policy is finalized and when there is more stability in the markets.
“This project was designed to utilize a combination of local investment capital and strategic partnerships to develop a competitive ethanol project in north-eastern Saskatchewan,” said ENSASK CEO James Leier. “ENSASK was able to prepare the necessary engineering and development plan for a 104 million litre ethanol facility. Without additional participation from agricultural producers or a strategic partner the company was unable to fulfill its vision to generate renewable energy out of area farm production.”