Cenovus Energy has announced plans to shut down its ethanol plant near Lloydminster, Saskatchewan, on December 15. The decision comes after an economic review, though the company has not shared specific details. The closure leaves local wheat producers in a tough spot, as harvest season wraps up and some farmers are left with ethanol wheat that now lacks a primary buyer.
Devon Walker, a board member with the Agricultural Producers Association of Saskatchewan, noted that about one-third of farms in the area grow ethanol wheat varieties. The loss of the plant as a sales outlet will force producers to adapt, potentially leading to a drop in acres planted with ethanol wheat next year.
Cenovus acquired the Lloydminster plant when it took over Husky Energy 15 years ago. The plant, which processes wheat, corn, triticale, and rye, also produces ethanol byproducts like corn oil and livestock feed supplements. Despite the closure, the company will continue operating its ethanol plant in Minnedosa, Manitoba, which together with the Lloydminster plant has a combined annual capacity of 284 million litres of ethanol.
The company is working to transition ethanol plant employees to other roles and will maintain the site while evaluating future options. Walker acknowledged that while some farmers may continue growing ethanol wheat, others will likely switch to different crops due to the lack of a reliable local buyer.