Ottawa is investing $4.7 million in Woodland Biofuels and a new process it’s testing in Sarnia.
About $1.9 million will be used to help the company further develop its technology that produces ethanol from wood and agricultural waste.
The Toronto-based company is also getting $2.8 million to increase the efficiency of its successful demonstration plant in Sarnia and help turn it into the company’s first commercial-scale ethanol facility, Natural Resources Canada said last week.
The plant uses a mix of wood waste from forestry, construction and demolition sites to produce ethanol, a renewable fuel that reduces greenhouse gas emissions.
Investing in bioenergy is a key part of the government’s plan to combat climate change while growing the economy, it said.