Lloydminster and Minnedosa Ethanol Plants

Husky is Western Canada’s largest producer of ethanol and was a pioneer in marketing of ethanol-blended fuels. The Company’s first ethanol plant was built in 1981 to produce ethanol for fuel and industrial use. Husky and Mohawk retail outlets market ethanol-blended gasoline under the “Mother Nature’s Fuel” brand.

Husky opened a 130 million litres per year ethanol plant at Lloydminster, Saskatchewan in 2006, and a year later completed a 130 million litres per year ethanol plant on the site of the original plant at Minnedosa, Manitoba.

Ethanol

Ethanol, also known as ethyl alcohol or grain alcohol, is made from wheat, corn or sugar. Husky’s ethanol is made by converting the carbohydrate (starch) portion of grain into sugar. The sugar is then converted to ethanol in a fermentation process.

Pure ethanol was first promoted as a transportation fuel by Henry Ford for his Model T automobile. Today, all vehicle manufacturers approve a blend of up to 10 percent ethanol. Blends of more than 10 percent require a flexible-fuel vehicle which is designed to run on gasoline or ethanol blends of up to 85 percent.

Ethanol Production

The primary feedstock for Husky’s ethanol facilities is non food feed grade wheat purchased from local growers. The Lloydminster and Minnedosa ethanol plants are each designed to take in 350,000 tonnes of grain per year. Husky is one of Western Canada’s largest grain buyers, purchasing a total of 700,000 tonnes per year.

The process of turning grain into ethanol involves milling, cooking, fermenting, distilling and dehydrating. Grain is milled, mixed with water to produce a slurry, and then cooked. Enzymes are added to the mixture to convert starch into fermentable sugars. Yeast is added to start the fermentation process.

The fermented mixture requires distillation to separate the ethanol from the solids and water. Distillation requires heating the fermented mixture until it sends off a vapour. The ethanol and water vapour from the top of the distillation column is captured, cooled and condensed to a liquid. The liquid then passes through a dehydration system where the remaining water is removed via a molecular sieve. The resulting product is pure ethanol.

The produced ethanol is treated or “denatured” by adding a small amount of gasoline to turn it into fuel grade ethanol. The ethanol is then blended with gasoline at points in the distribution system or at blender pumps at Husky and Mohawk retail outlets. It is also sold to third parties for offsite blending.

The heavy solids or mash that remains are dried to produce dried distillers grain with solubles (DDGS), a high protein feed supplement sold to livestock producers.

Ethanol Processing

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Husky’s Feedstock Requirements

Feedstock for Husky’s ethanol facilities include Canadian Western Soft, Canadian Prairie Spring Red, Canadian Prairie Spring White and Red Winter wheat. These feed grade wheat varieties contain more ethanol-producing starch than higher quality milling wheat. Other grains such as durum, barley or rye may be used with corn on occasion. Husky’s facilities are specifically designed to process non food grade wheat varieties.

Husky purchases wheat that weighs 58 pounds per bushel or more. Husky’s major quality requirements for feedstock include: less than 15 percent moisture content, fusarium maximum 1.0 parts per million vomitoxin, and no mould.

Advantages of Mother Nature’s Fuel

Ethanol-blended fuels increase engine performance by:

• Reducing pre-ignition, those “knocking” or “pinging” noises which under severe conditions can result in serious engine damage.
• Keeping fuel tanks and systems clean of contaminants and water through its natural solvent and water-absorbing properties.
• Acting as a natural gasoline-line antifreeze in winter. Adding ethanol results in a higher octane rating. Husky creates 89 to 94 octane Mother Nature’s Fuel by blending up to 10 percent ethanol with regular or premium gasoline. The higher octane levels of cleaner-burning ethanol-blended fuels are beneficial to high performance engines.

Ethanol and the Environment

The construction of both the Lloydminster and Minnedosa ethanol plants and the marketing of ethanol-blended gasoline, demonstrates the Company’s commitment to assist in reducing vehicle emissions.

Depending on driving conditions and the vehicle’s age, ethanol-blended fuel can reduce carbon monoxide emissions by up to 40 percent. Several recent Canadian studies have found that, on a lifecycle basis, 10 percent ethanol-blended gasoline can lower overall greenhouse gas (GHG) emissions. These studies tracked GHG emissions from the time of planting and fertilizing fields through to harvest, trucking feedstock to the ethanol plant, production of ethanol, transportation to fuel distributors and retailers, and finally consumption in motorists’ vehicles.

Environmental protection and energy efficiency are important elements of Husky’s ethanol plants. At Lloydminster, the facility is integrated with Husky’s heavy oil upgrader and onsite co-generation power facility to increase energy efficiency and reduce emissions.

Highlights - Husky's Ethanol Facilities

Husky’s new ethanol plants use efficient, modern technology and apply the principles of reduce, reuse and recycle, such as:

• existing industrial land was used for the plant sites,
• process water is reused, reducing the need for raw water,
• wastewater is recycled, dust control systems and newer, more efficient technologies (e.g. DDGS dryer and cooling tower) minimize emissions, and
• no significant solid wastes are produced from the facilities.

Lloydminster Ethanol Plant

In operation since 2006.

• 130 million litres of ethanol per year production capacity.
• 40 person-years of engineering during design and construction.
• 26 full-time employees.
• 350,000 tonnes of non food grain feedstock purchased annually.
• 130,000 tonnes of DDGS produced annually.\

Minnedosa Ethanol Plant

Started up late 2007.

• 130 million litres of ethanol per year production capacity.
• 40 person-years of engineering during design and construction.
• 30 full-time employees.
• 350,000 tonnes of non food grain purchased per year.130,000 tonnes of DDGS produced annually.

The Future of Ethanol

With two ethanol plants Husky well positioned to supply markets in Saskatchewan, Manitoba and Husky and Mohawk retail outlets in other provinces.

For more information visit myhusky.ca and Our Products.
Ethanol Fact Sheet