Feds announce funding to build biofuel terminal on Welland Canal

Ontario Construction News staff writer

The federal government is investing more than $25 million into four green shipping projects aimed at reducing emissions and advancing sustainable marine technology. The funding will support shore-power infrastructure, alternative fuel solutions, and the development of new port facilities.

A large portion of the funding—$13.8 million—will go towards building a 12-acre, 8-million-litre biofuel terminal at Port Colborne, located on the Welland Canal. This new terminal will help reduce greenhouse gas emissions by about 144,000 tonnes annually by 2030, and an estimated 2.8 million tonnes over the facility’s lifetime.

“Port Colborne’s strategic location provides near year-round service, making it a key hub on the Great Lakes,” said Ian Hamilton, CEO of HOPA Ports. “This project builds on our success at the Thorold Multimodal Hub and highlights our commitment to unlocking the potential of underutilized industrial lands along the Welland Canal.”

In addition to Port Colborne, the federal government is allocating $4.9 million to Sterling Fuels to upgrade infrastructure at the Port of Hamilton. The funding will help expand the company’s biofuel storage capacity by adding two tanks, along with new pumps and piping to handle biofuel distribution.

A further $6 million will be provided to Quebec Stevedoring Limited (QSL) to install shore-power charging stations at the Port of Montreal. The new systems will allow vessels to recharge their batteries while docked, reducing the need for auxiliary engines and cutting emissions.

The City of Sault Ste. Marie will receive $405,000 to conduct studies on the feasibility of developing a new public port at the Port of Algoma.

Projects are part of the Green Shipping Corridor Program, which aims to decarbonize the marine sector and establish green shipping corridors across Canada’s Great Lakes, St. Lawrence Seaway, and both coasts. The program supports the federal government’s efforts to reduce emissions from the shipping industry while fostering innovation in clean technologies.

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