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- calendar_today November 6, 2026
Cenovus Announces Closure of Lloydminster Ethanol Facility
Cenovus Energy has announced it will close its ethanol plant near Lloydminster, Saskatchewan, next month, citing a poor economic outlook. The plant's last day of operations is set for December 15, 2026, according to a statement provided by the company.
Impact on Local Grain Producers
The announcement is already affecting regional producers, particularly those harvesting ethanol wheat. Devon Walker, a board member with the Agricultural Producers Association of Saskatchewan, noted that "there's a lot of ethanol wheat in grain bags right now that maybe doesn't have a home yet, that was destined to go to the Cenovus ethanol plant." The closure removes a major sales outlet for growers of specialized crops like ethanol wheat and off-grade feed wheat in the Lloydminster area.
Timing Concerns Amid Harvest Season
The plant’s closure has come at a time when harvest is just wrapping up. Walker said, "We're just finishing harvest, and there's a decent crop out there of ethanol wheat, and now their sales point is closing." He estimated that about one-third of farms in the area grow ethanol wheat varieties, though he himself stopped several years ago. While he expects some farms may continue to grow the crop, others will likely shift to different types due to uncertainty about sales options. "If people don't have a reliable buyer for it that fits into their business model, they'll step away," Walker said, predicting a drop in acres devoted to ethanol wheat without a local buyer.
Company’s Response and Employee Transition
Cenovus declined interview requests and did not answer further questions about the closure beyond its official statement. The company indicated it is working to transition ethanol plant employees to other roles within its operations, and said it will maintain the plant while options for the facility are reviewed.
Cenovus Ethanol Operations Continue in Manitoba
Although the Lloydminster facility will close, Cenovus stated that its ethanol plant in Minnedosa, Manitoba, will continue to operate. The two plants together have had the capacity to produce up to 284 million litres of ethanol annually. The Lloydminster facility has sourced wheat, corn, triticale, and rye from growers in Saskatchewan and Alberta, and has also produced byproducts such as corn oil and dried distillers grain for livestock feed.
Background and Industry Context
The Lloydminster plant was originally constructed by Husky Energy in 2004 and began operating in 2006. Cenovus assumed control of the facility in 2021 after acquiring Husky Energy. Ethanol is recognized as a renewable fuel that, according to Natural Resources Canada, burns more cleanly and completely than gasoline or diesel.
Future Prospects for Crop Producers
Producers like Walker anticipate adjusting by potentially transporting their crops further or seeking alternative buyers, but acknowledge the uncertainty ahead. While it is expected that ethanol wheat and similar crops will continue to be grown, shifts in cropping patterns are likely as growers adapt to the closure of a significant regional market.
Source: cbc.ca.
