Canadian Bioenergy, ADM Mull Biofuel

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Biodiesel supplier Canadian Bioenergy and crop-processing giant Archer Daniels Midland Co are carrying out a joint feasibility study that could see Canada’s largest canola biodiesel plant built in Alberta.

If the project proceeds, the companies will build the plant on the site of ADM’s canola-crushing plant in Lloydminster, Alberta, and produce 265 million litres a year, Canadian Bioenergy said Apr. 7.

The plant would need an annual supply of 240,000 tonnes of canola oil, crushed from about 600,000 tonnes of seed.

Canadian Bioenergy has been planning a 225-million-litre per year canola biodiesel plant near Edmonton, Alberta, next to Bunge Canada’s oilseed-crushing plant. The company will re-evaluate that project once the feasibility study is completed on the Lloydminster project with ADM, Hooper said.

The Lloydminster plant would be integrated into the ADM crushing facility, in contrast to the Edmonton project which would see canola oil piped to a nearby standalone biodiesel plant owned solely by Canadian Bioenergy. ADM and Canadian Bioenergy would jointly own and operate the Lloydminster facility.

The feasibility study will estimate construction costs and ways to raise capital through a mixture of equity and possibly debt and government programs, Hooper said.

If the project proceeds, construction could start in the fourth quarter of this year and finish by the first quarter of 2011.

Customers would be oil companies themselves, rather than end users such as bus companies or industrial fuel users, Hooper said.

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