Ethanol production a possibility

Page 6

When the Treaty 4 executive council took a look at the economic possibilities of ethanol, it liked what it saw.

But it's a bit soon for the organization to start to enter into agreements for ethanol production, said File Hills Qu'Appelle Tribal Council (FHQTC) representative president Ron Crowe.

Late last month, The Treaty 4 Trust and the Melville Regional Ethanol Committee (MERC) held a day-long conference to discuss the merits of building an ethanol facility in the Melville region.

The Melville committee approached Treaty 4 to gauge whether First Nations had any interest in becoming part of a plan to build an ethanol plant in the district.

However, said Crowe, the First Nations chiefs who make up the Treaty 4 trust are the ones who decide in what areas they'll invest, not the executive council. The executive council can make its recommendations, but ultimately it's the chiefs who decide, he said.

"We have yet to receive a specific mandate on ethanol investment. As a result of this conference we will be seeking a mandate (for ethanol investment) from the FHQ Tribal Council at the next chiefs' forum."

However, he added, an ethanol program could fit in well with FHQTC's agricultural mandate, which is to increase production of organically grown crops.

"What will probably happen is that there will be a special committee within the council struck to examine ethanol programs, and that committee will help us decide how and where to invest."

Ethanol is produced by the fermentation of small grains, such as corn or wheat. Blended with gasoline, the end result is a higher-octane fuel that produces less carbon dioxide and other pollutants when used in engines.

In addition to environmental benefits, ethanol production also creates jobs not only at the production facilities but also in spin-off areas-from more demand for locally grown grains to feedlot operations, where livestock feed on the leftover "mash" from ethanol production.

For example, the ethanol plant planned for the Melville area would create about 300 jobs, not only at the plant, but also in related spin-off industries.

The Melville plan is one of several plans for ethanol production being formulated by Saskatchewan communities.

The provincial government has spurred interest in ethanol production since its announcement last month that it would cut taxes for ethanol-blended gasoline.

"There's a role for us to play in every aspect of this," Crowe said. "That's the challenge-to develop a collective strategy that best positions us in all these areas.

"From grain production to transport, livestock to a stake in ownership of an ethanol plant- we have an interest in looking at ways to invest."