Suncor Energy Resumes Ethanol Plant Expansion Plans

Suncor Energy Inc. (SU) has resurrected plans to expand its St. Clair Ethanol Plant near Sarnia, Ont.

The Calgary integrated energy company is planning a C$120 million construction project to double the plant's production capacity to 400 million liters of ethanol a year. The expansion is now expected to be completed in late 2010 or early 2011.

Suncor delayed the planned expansion by more than a year in January to save costs.

The expansion will create 350 construction jobs and will result in 15 new positions to operate the larger plant.

The current plant started operations in 2006. The ethanol is produced from about 20 million bushels of corn annually and is blended into Sunoco gasoline. The planned expansion will use about 40 million bushels of corn a year.

source: online.wsj