The worldwide fuel market is poised to undergo an exciting revolution, and the Town of Collingwood will be among the bold new players leading the way.

Power Stream Energy Services Inc., a leading Canadian energy risk management provider, will retrofit an existing starch plant in town to manufacture ethanol, a renewable fuel source made from corn. The plant will be one of the first of its kind in the country, and will put Collingwood firmly on the map as a key innovator of environmentally technologies.

“This is a great initiative for the community, the economy and the environment,” says Grant McArthur, manager of generation and structured products. “What we’re hearing from the government and the local community is that they’re very excited about the project. Nobody can lose – everyone stands to benefit.”

The plant will use corn purchased from local farmers to extract starch, which forms the basis of ethanol. Through an extremely energy-efficient process, the plant will simultaneously generate electrical and thermal power by using the waste heat from a gas turbine to generate steam. This will save the equivalent of more than 5,000 tonnes of oil per year and will reduce greenhouse gas (GHG) emissions by 10,000 tonnes per year.

“This is a very efficient way of generating the energy we need for the process of making a fuel that will greatly reduce greenhouse gas emissions,” McArthur says.

At a time when Canada will soon be seeking to fulfil its commitments under the Kyoto Accord, and when many nations are seeking to reduce their reliance on foreign sources for fuel, Power Stream Energy’s new venture will offer an invaluable alternative to traditional energy sources.

The ethanol produced by the facility will displace about 54 million litres of gasoline each year and eliminate 70,000 tonnes of GHG emissions per year – equivalent to removing more than 15,000 cars from Ontario’s roads.

Construction of the facility will constitute a one-time injection of $50 million into the local economy, and the plant’s operating costs will yield $40 million per year in economic activity. As well, the facility will generate 50 new jobs for the local economy.

“It’s rare that an opportunity like this comes along, and we’re really excited to proceed,” McArthur says. “This will be a tremendous boost to the town and a huge step forward in the alternative fuel industry.”