SPRINGFORD — Canadian Bio-Fuel from Chatham recently unveiled its construction agenda for a former Cargill Elevator in the southeast Oxford County community of Springford. The company says it will be turning out 25,000 tonnes annually of wood pellets and brickettes as early as summer, 2010.

The announcement came after the Township of Norwich gave planning approval for his change of land use for the now-closed elevator.

“A grain elevator has many of the same processes and storage facilities as we require, so this is a great fit for us,” says Canadian Bio Fuel president and CEO Ian Moncrieff.

Moncrieff told Ridgetown College-based news service AgriLink that the company will start off by turning waste wood, waxed cardboard and cardboard into finished product. But it’s hoped that the main supply in the future will come from area farmers when they start growing dedicated fuel crops for sale to Canadian Bio Fuel.

The company president envisions about 5,000 acres of cropland dedicated to growing either miscanthus grass, perennial hybrid willow, prairie grass or switchgrass for the plant to turn into energy pellets. Such pellets can be used for everything from kitchen cookstoves to home or farm shop heating systems, or even turning into steam-generated electricity.

“I see in 2-3 years from now, farmers who used to grow tobacco on these sandy soils in this region, growing fuel crops which will be good for soil conservation and renewal and also for the farmer’s pocketbooks,” says Moncrieff. He estimates the return to be $400 per acre with very little input costs.

Canadian Bio Fuel will be responsible for harvesting and trucking of the grass and wood products. The cost to the grower in the first year will be for seed and seeding. Moncrieff predicts some small quantities of nitrogen will be required in subsequent years.

Both senior governments have been supportive of the project, through grants and loans as a way to provide revenue for farmers faced with the decline in the tobacco industry.

The Springford elevator has numerous grain bins and warehouse buildings, which will be used for pellet and brickette manufacturing and storage.

Moncrieff sees the first year’s 25,000 tonnes annual capacity rising to 60,000 tonnes in three years and, with a proposed supply contract with the Ontario Power Generation plant at Nanticoke, going to 100,000 tonnes. He cautions pellet plant operating costs are sensitive to the transportation costs of the rather bulky grass and wood feedstocks. He estimates his plant could only receive raw product efficiently within a 50-kilometre radius.

“With the first plant running well, our firm would look at building a second plant in the Simcoe area or, indeed, in Wallaceburg.

He estimates the Springford plant will employ 15-20 full-time people and the seasonal harvest brigade would require about 30 more.

(From AgriLink, University of Guelph, Ridgetown Campus)