Some time ago we hinted here on Ensign that the Ethanol production project for Tisdale was in trouble and not expected to go ahead. Today, we learned that an official announcement is expected from ENSASK Biofuels next week that will discuss the failure of the project.
The company is expected to blame the failure of producers in the Tisdale area, who did not financially get behind the project for its lack of equity and without the capital, the project just can not go forward.
However, there are many who suggest that the project had some serious conceptual flaws that limited its potential and by so doing, limited the people willing to by shares in the venture. Some site the fact that the project was not a modest project, but was far larger than could economically be financed and by its size, was doomed to failure. Others point out that the company chose to make no real progress in demonstrating its solid intentions to go forward and the momentum on the project was lost and could not attract investors.
No doubt, the failure of the venture would have been a number of factors including the most obvious one being, that the project languished for a full two years before getting in gear and by then, the prospects and potential of the project were already limited.