REGINA, Sask. — A major ethanol plant in Saskatchewan is one step closer to reality thanks to possible funding from the federal government.

Federal Environment Minister John Baird has announced his department is now in the due diligence phase of approving funding for Canada’s first commercial scale cellulosic ethanol production facility.

“This is a good day for Canadians and our environment,” said Baird. “Thanks to our Government’s allocation of $500 million for next generation biofuels, Canada is one step closer to making our country’s first full-scale cellulosic ethanol fuel facility a reality. With technologies such as this, Canada is well-positioned to be a world leader in the renewable fuels industry.”

The funding is part of the feds’ NextGen Biofuels Fund. The proposed facility will be operated by Iogen, which along with partners Shell and Goldman Sachs, is developing a way to convert plant fiber into sugars that are then fermented and distilled to create cellulosic ethanol.

“Today’s announcement brings us one step closer to making cellulosic ethanol a commercial reality,” says Brian Foody, Iogen president. “Iogen is a world leader in cellulosic ethanol, with proven cellulosic ethanol production experience since 2004. We believe that our technology will help reduce greenhouse gas emissions in the transportation sector, provide economic growth opportunities for farmers and increase energy diversity.”