Beet farmers needed for ethanol plant

With growing food seemingly becoming a more difficult way to make a living, some farmers on P.E.I. are turning to growing energy.

Renewable Energy Growers, a small group of Island sugar beet farmers, made a presentation Monday to the legislative committee exploring the current difficulties in the agriculture industry, and made a pitch for the province to support the building of an ethanol plant.

"It could be a huge part of agriculture on Prince Edward Island, growing energy crops," said sugar beet grower Ernie Mutch.

Growing corn to produce ethanol has become a widespread, if controversial, farming practice in North America. Critics say there is no net energy gain in growing corn for energy. On P.E.I., Atlantec BioEnergy, the developers of a proposed ethanol plant, say they expect to get much better results from sugar beets, producing two units of energy for every one put in.

This summer the first significant crop of sugar beets was grown on P.E.I. Eleven farmers took part in field trials, committing to grow 970 hectares. The ethanol plant needs 2,025 hectares in production to launch, and would want that toincrease to 7,300 hectares.

Renewable Energy Growers believes an ethanol plant on P.E.I. would make for a more sustainable economy.

"There's over $400 million [that] leaves this Island every year in purchase of energy," said Mutch.

Ethanol already has support from the federal government, which has mandated that all gasoline must have afive per cent mix of ethanol by 2010. The plant developers want the province to go further, and mandate a 10 per cent ethanol blend to ensure a market, and take a cut in tax revenue to ensure that the ethanol mixed fuel does not end up costing consumers more.

Environment Minister George Webster told CBC News the government is interested in bio-fuels production, but it's not sold yet on sugar beets.

"Let's sort what crop has the best potential and try to make a decision that's really going to be good for P.E.I. in the long run," said Webster, who is also concerned about the requirement for the government to subsidize the fuel.

"I don't mind a little subsidy for a short time; I don't like a lot of subsidy for many, many, many years, because to me that's not sustainable."

The federal government has put up $50 million to assist farmers interested in investing in an ethanol plant. That program runs out at the end of March. Webster said the government will make decisions on the future of ethanol well before then.

Farmers hesitant

But it is not just the government that needs convincing. Atlantec BioEnergy acknowledges farmers are not an easy sell on the concept either.

"They are hesitant switching over to something new. We're showing them what the margins are in this crop," said communications manager Ron Coles.

Sugar beets have their downside. They are a row crop that leave the soil bare in winter, and require pesticides to grow, though not as much as potatoes. Coles said his company is willing to offer assistance to farmers.

"We can offer some custom planting and harvesting operations for them. So their capital output is not that significant. And we're also showing them some of the ease of growing this crop versus some of the traditional crops on P.E.I."

Coles is confident enough interested farmers will be found. He said a decision on a final site for the ethanol production plant is expected in the next month or so. The company hopes to begin construction by the spring.