Canadian technology company Ceapro Inc. announced today (5th January) the establishment of Ceapro BioEnergy Inc., a wholly-owned subsidiary to utilize Ceapro's proprietary technology for the production of ethanol and value-added products. 

"Ceapro has recognized that our core processing and extraction technology is directly applicable to the production of green renewable fuels such as ethanol," stated Dr. Mark Redmond, President and CEO of Ceapro. "The recent directive from the Canadian Federal Government requiring the incorporation of 5% renewable content in gasoline by 2010 confirmed that we will have a market for ethanol. In addition, the Alberta Government has committed a total of $269 million to develop the province's renewable fuels industry and to support technology investment. The combined factors of our technology, an immediate market, and government support provide Ceapro with a significant business opportunity". Dr. Redmond also praised the Federal and Alberta Governments for providing the appropriate economic environment to allow biotechnologies such as Ceapro to thrive.

To begin operations, CBE has received a conditional award for $300,000 from the Federal Government Biofuels Opportunities for Producers Initiative (BOPI) program. The non-repayable funding will support a feasibility study for the construction and operation of a biorefinery and processing plant. Should the feasibility study prove favourable, Ceapro will work in partnership with fuel distributors and commence plant construction with a projected opening in 2008.