Suncor Energy Inc (SU.TO) said on Friday it has revived plans for a C$120 million ($111 million) expansion of its Sarnia, Ontario, ethanol plant in another sign the chill in energy investments is easing.
Suncor said the project would double output of the renewable fuel additive to 400 million litres (106 million gallons) a year by late 2010 or early 2011.
The company deferred the project at the start of the year as financial and energy markets skidded. It was initially to have been completed by the end of this year.
Construction will create 350 jobs in the Sarnia-Lambton area of southern Ontario.
Canada’s mayors are withdrawing their threat to boycott suppliers from the United States in retaliation of the Buy American laws.
The Federation of Canadian Municipalities says it won’t enact a resolution passed in June because municipal leaders see progress in talks between the two countries.
In a statement Saturday, federation president Basil Stewart said the mayors want to give negotiators in the talks the time and space to reach a successful conclusion.
“We are encouraged by the talks now under way between Canadian and U.S. officials and want to give them the time and space to reach a successful outcome,” he said.
“These talks can and should lead to a fair and mutually-beneficial agreement.”