Sugar beets to fuel P.E.I. ethanol plant

A new Charlottetown-based company has announced plans for a $40-million ethanol plantin Georgetown.

The plantin theeastern shore community will use sugar beets to produce the fuel substitute,Agritech Ethanol Corp.announced at a news conference Monday. The companysaid it will be the first time sugar beets will be used in this way in North America.

The company hopes to break ground on a $2-million pilot project in two weeks.

"The test facility in Georgetown will be for the experimentation and demonstration of various types of agriculture feed stocks for ethanol production," company president Mark Lowe said in a news release.

"If the pilot-scale plant proves successful, Agritech will be constructing a full-scale ethanol facility with an annual production capacity of 40 million litres in Georgetown in 2007/2008."

The final project will employ about 35 people in the town of about 700.

The plans are to open the first stage in 2007, but it still requires an environmental assessment.

Company officials said no government money is involved.