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Idaho Business News

Canada bolsters incentives in race for ethanol plant

POSTED: 05:35 MDT Wednesday, April 16, 2008

by Associated Press

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Tags -  ethanol

Canada is intensifying its efforts to lure an ethanol plant also being considered for eastern Idaho. For the last two years, Canadian-based Iogen Corporation has leaned toward building a cellulosic ethanol plant near Shelley.

Officials say the $350 plant would employ 100 workers and be an economic boon to farmers growing the straw, corn stover and switch grass used to make the fuel. The U.S. government has also pledged financial incentives and an $80 million grant.

But last month, Canadian officials announced $500 million in economic incentives for new bio-fuel projects. Iogen is also considering Saskatchewan for the plant.

Brandon Bird, executive director of the Bingham Economic Development Corp., says eastern Idaho still holds the trump card with its ability to generate the plant’s supply of raw materials.

And Republican Sen. Larry Craig says despite the Canadian efforts he’s confident Iogen will ultimately pick eastern Idaho.

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