Former Spudco investors plan ethanol plant

Some of the same investors who sued the Saskatchewan government over the failed Spudco potato development say they have finalized plans for a $50-million ethanol plant near Lucky Lake.

The plant would use waste potatoes as well as locally grown wheat and corn.

Spudco was the government/private sectorjoint venture set up in the mid-1990s to grow and store potatoes.

When it failed, taxpayers were on the hook for more than $30 million. One group of investors sued the province and won a $5.7-million settlement.

Now they've decided to reinvest the money in ethanol production.

About 40 per cent of the potatoes grown around Lake Diefenbaker are considered waste.

The ethanol plant would use those spuds, as well as wheat.

One of the investors, Mark Langefeld, said the plant would be unique not only because it would use potatoes, but because it will make natural gas from its own waste.

The plan also calls for a supply guarantee, either by buying farmland outright, or entering into long-term leases and contracts with local farmers.

All the material needed to produce 50 million litres of ethanol a year could be obtained within 90 kilometres of the plant, Langefeld said.

An announcement of a start date for construction is expected in February.