Provincial boost of $3.3 million for Delaware, Ontario company expansion
published: June 5th, 2008author: Nancy Powers
source: The Strathroy Age Dispatch
website: http://www.strathroyagedispatch.com
A Delaware Ontario company has received a $3.3 million boost from the provincial government to help build a new processing facility.
Stemergy Renewable Fibre Technologies, a leader in the production of renewable fibres and biobased products, is now able to expand its BioFibeRefinery technology.
According to Geof Kime, Stemergy's president and COO, the total project budget is $10 million, with the balance coming from private investors.
“We are excited by the commitment the provincial government is showing our project,” said Mr. Kime. “Ontario has the opportunity to be a leading area for creating valuable biomaterials derived from plants.”
Stemergy turns locally-grown hemp and flax stems into renewable, environmentally-friendly composite materials.
These materials give manufacturers an alternative to the energy-intensive glass and synthetic materials used to make composites such as plastic and fiberglass.
Stemergy was founded in 1994 by Mr. Kime and Joe Strobel, a retired teacher and tobacco farmer who died in the spring of 2006.
“In the first summer we were able to obtain the first license to grow industrial hemp in Canada since the Second World War,” explains Mr. Kime. “This started a four-year research and development program designed to evaluate crop production methods for producing hemp and flax fibre.”
Included among the products made by Stemergy are ceiling tiles, concrete filler, horse bedding, garden mulch, and the insides of car door panels.
“In simple terms, we are harnessing the ability of unique plants to convert solar energy and greenhouse gases into valuable materials,” said Mr. Kime. “In an era of rising and volatile oil and energy prices, using plants to replace such materials as plastic and fiberglass makes sound economic sense.”
As energy and material costs continue to rise, said Mr. Kime, the demand for renewable bio-fibres has never been greater. “‘This investment is important to help us capture that growing market,” said Mr. Kime.
The next phase of Stemergy's growth is to scale up its technology and production to provide the global marketplace. A new BioFibeRefinery facility will be built on the company's 15-acre property in Delaware.
“It will take 12 months to build the facility,” said Mr. Kime. “In the following 12 months, we will bring the plant on-line to maximum capacity.”
Mr. Kime has indicated that his company will add 20 new jobs at Stemergy, and “impact at least five times that many within the region.”
“It is our expectation that our expansion will lead to additional crop diversification, with 10,000 acres of biofibre crop production in the southwestern Ontario region,” said Mr. Kime.
Local MPP Maria Van Bommel says this project has huge potential for southwestern Ontario.
“The region's traditional economic leaders in agriculture, chemical, and automotive industries are facing growing competitive pressures,” said Mrs. Van Bommel. “The beauty of projects such as this one, is that they tie these traditional strengths together to create a new market.”
