Clean Technology Development Announced in Dauphin For Hemp Processing

Parkland Bio Fibre Ltd. receives $3 Million Contribution from Sustainable Development Technology Canada

Dauphin, MB – July 5, 2005 -- The first hemp processing plant in Manitoba is one step closer to diversifying the rural and agricultural economy in the Parkland Region, following a funding announcement made in Dauphin today. A Canadian consortium led by Parkland Bio Fibre Ltd. will receive a contribution of $3 million, subject to final contract negotiations, from Sustainable Development Technology Canada (SDTC). This funding complements significant efforts of the provincial and municipal governments in moving this project forward.

The funding will be used to develop and demonstrate a process that will utilize raw industrial hemp fibre to produce insulation and other products while reducing agricultural waste streams. The process will utilize European technology, currently used in small-scale operations, that will be adapted and configured into a larger pilot processing facility in Dauphin.

The main value-added product will be biofibre insulation, which can be used in place of “pink” fibre glass insulation in the construction industry. Other products produced initially will be non-woven matting for use in the horticulture industry, fibre for the paper recycling industry and short fibre that makes excellent horse and pet bedding.

Products made through this initiative will eliminate the atmospheric emissions from the current practice of burning hemp plants after grain harvest and will sequester carbon for extended periods if used in long life buildings.There is currently no alternative use for this residue, other than to burn it. By introducing a more environmentally-sensitive process, the technology will help Canada achieve its greenhouse gas targets.

In addition to SDTC funding, the project will be leveraged by a contribution of $8.1 million from private consortium partners including McMunn & Yates Building Supplies, North American Natural Fibers, Olds Agtech Industries Inc., Parkland Industrial Hemp Growers Coop, Plant Fibre Technology and UKAL (Canada) Ltd.

The project has also garnered support from the City and Rural Municipality of Dauphin, which has donated the future site of the facility, as well as the Province of Manitoba.

“This announcement comes after countless hours of effort and is truly a reflection of the dedication shown by all of our partners who believe that hemp processing has a sustainable future in Manitoba,” said Joe Federowich, President of Parkland Industrial Hemp Growers, a project partner that will supply the raw materials to the plant .

“The Parkland BioFibre project is another example of Canada’s leadership in developing innovative approaches to climate change and sustainable development,” said Reg Alcock, President of the Treasury Board, speaking on behalf of the Government of Canada. “This project will have many far-reaching benefits, such as reduced greenhouse gas emissions, increased use of renewable energy sources and a strong and diverse agricultural industry.”

Don Dewar, a farmer from the Dauphin area and well-known community leader, has been elected as President of Parkland BioFibre and is optimistic that the facility will continue to bring tangible benefits to the community.

“We expect to employ about 20 people and to become an important economic driver for our region,” says Dewar. “The expertise and commitment of our board will ensure that Parkland BioFibre has a sustainable and successful future here in the Parkland.”

“SDTC’s support for this project reflects its strong potential to reduce greenhouse gas emissions and to develop new economic opportunities in an industry worth $550 million annually in Canada,” said Vicky J. Sharpe, President and CEO of SDTC. “Today’s announcement is further evidence of Canada’s rapidly growing capacity for green technology innovation and our nation’s momentum in building a true sustainable development infrastructure.”

“Producers across Manitoba consistently demonstrate strength in their ability to diversify and find opportunities in the face of challenges,” said Premier Gary Doer. “Producers immediately recognized an opportunity when industrial hemp was licensed by the federal government, and turned this into good news for Dauphin, the Parkland region, and for producers across Manitoba.”

About SDTC
Sustainable Development Technology Canada is a foundation created by the Government of Canada that operates a $550 million fund to support the development and demonstration of clean technologies — solutions that address issues of climate change, clean air, and water and soil quality to deliver environmental, economic and health benefits to Canadians.

An arm’s length, not-for-profit corporation, SDTC fills the void in the innovation chain between research and commercialization — helping clean technology developers move through the development and demonstration phases, in preparation for commercialization. 

SDTC encourages collaboration among private, financial, academic, public sector partners and with the Government of Canada and all levels of government to build a sustainable development infrastructure in Canada.

For more information, please contact: Don Dewar, President Parkland Biofibre Ltd. Cell: (204) 648-4649

Joe Federowich, President Parkland Industrial Hemp Growers  Cell: (204) 638-2448

Andrée Mongeon Director of Communications Sustainable Development Technology Canada Tel: (613) 234-6313 x 224 a.mongeon@sdtc.ca

 Jonathan Hildebrand Press Secretary to Cabinet Province of Manitoba Tel: (204) 945-1494