Pubdate: Fri, 02 Mar 2007
Source: Winnipeg Free Press (CN MB)
Copyright: 2007 Winnipeg Free Press
Contact:  http://www.winnipegfreepress.com/
Details: http://www.mapinc.org/media/502
Author: Martin Cash
Bookmark: http://www.mapinc.org/find?330 (Hemp - Outside U.S.)

NEW BID TO START HEMP PLANT IN DAUPHIN

Will Process Fibres Into Green Insulation

FOR the second time in almost 10 years, efforts are underway to 
develop a multimillion-dollar hemp processing plant in Dauphin.

Parkland BioFibres Ltd. is looking to build a $14-million raw 
industrial hemp processing operation to make building insulation.

The 50 members of the Parklands Industrial Hemp Growers Co-Op have 
committed $2 million to the project and promoters are seeking another 
$3.3 million from private investors.

Hemp is seen as an excellent environmental and functional alternative 
to pink Fiberglas insulation. The Dauphin plant also plans to produce 
non-woven matting for use in the horticulture industry, fibre for the 
paper recycling industry and short fibre for horse and pet bedding.

Don Dewar, chairman of Parkland BioFibre Ltd., said the group has 
already secured a $3-million operating grant from the federal 
government through Sustainable Development Technology Canada and the 
province has given conditional approval for a $3-million loan once 
the rest of its financing is in place.

About $500,000 has already been raised from investors and Dewar said 
he is hopeful the rest of the required capital will be found.

"This will be the first commercial hemp fibre processing plant in 
North America," Dewar said. "We think there is growing interest in 
these kinds of products."

The insulation made from hemp has several desirable qualities 
including the fact it is made from a renewable raw material. There 
are producers and a market for the product in Europe, but Parkland 
BioFibre will be the first to make and sell it in North America.

"But we believe the market will develop and we want to have the plant 
up and running to take advantage of that," said Dewar.

In addition to the $6 million from the province and federal 
governments, the City of Dauphin has made available a $300,000 piece 
of land in the industrial park that was created for the ill-fated 
Ranchers Choice cattle processing plant that was recently shelved.

In 1999, one year after it was made legal to produce non-THC hemp as 
a commercial industrial crop in Canada, a California outfit called 
Consolidated Growers and Processors Inc. tried and failed to build a 
$25-million hemp processing plant in Dauphin. (THC is the active 
ingredient that produces the "high" derived from illegal 
marijuana/hemp plants.)

Parkland BioFibres is taking a more modest approach and it has a 
ready-made group of growers who were originally organized to supply 
the failed California operation. But like any greenfield operation 
attempting to create a brand-new market, there are obvious risks.

"We think it is good for the region and we want to contribute in 
getting it off the ground," said Jason Yates who is a partner in the 
11-store McMunn & Yates Building Supplies chain. "There is a huge 
push in the building industry to go green so there ought to be some interest."

McMunn & Yates are committing to stocking the hemp insulation when it 
comes out, even though that market is dominated by large 
multinational players like Johns Manville and Owens Corning.

Dewar said the plan is for the plant to be operational in 2008 and 
profitable by 2010.

Mike Fata, president of Manitoba Harvest Hemp Foods & Oils, one of 
the largest North American suppliers of nutritional and food products 
made from hemp seeds, said the fibre processing operation is a great idea.

"The more hemp grown, the better as far as we are concerned," he said.
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MAP posted-by: Beth Wehrman