Carbon Clean Energy Inc. (CCE) is the lead developer of a $285 million wheat-based biofuels facility to be constructed near Strathmore, Alberta. The facility is designed to produce 160 million litres of denatured ethanol for fuel blending, 1.76 mmBtu of biogas and 12 MWh of green power generation annually.
CCE holds the exclusive North American rights to an integrated design that yields the lowest carbon intensity ethanol currently available. Low carbon intensity ethanol will significantly reduce GHG emissions across Canada and is aligned with Canadian and international clean fuel standards. The facility will also generate 1.3 million tonnes of Alberta carbon offset credits annually, the first of its kind in North America. The project will create up to 800 construction jobs and will add incremental value for Alberta’s grain producers. First production is expected by early 2021.
CCE has negotiated and is finalizing a long term commercial arrangement with Elbow River Marketing Ltd., a wholly-owned subsidiary of Parkland Fuel Corporation (PKI-TSE), to purchase ethanol production and carbon offset credits from the facility. Export Development Canada has provided an indicative term sheet in respect of a senior secured credit facility, subject to the successful completion of due diligence and formal credit committee review and approval. Stuart Olson Industrial Services Inc., a wholly-owned subsidiary of Stuart Olson Inc. (SOX-TSE) has been engaged as the General Contractor. Dentons Canada LLP is acting as legal counsel and AltaCorp Capital Inc. is acting as financial advisor and agent to CCE.