Suncor expects the construction project, which was put on hold in January, to be completed in late 2010 or early 2011. The project will double the plant’s current ethanol production capacity from 200 to 400 million liters per year, according to the company.

“This is great news for Suncor, for Southern Ontario and for Canada,” said Rick George, president and chief executive officer. “As a Canadian industry leader in renewable energy, we’re excited about the prospect of increasing our alternative-fuel production and exploring future opportunities to integrate ethanol into our expanded retail operations.”

The project will generate 350 jobs during construction and 15 new jobs to operate the expanded plant, and will create additional supporting demand for feedstock—approximately 40 million bushels of corn annually—from local farmers, according to the company.

“The St. Clair facility is the platform for growth of Suncor’s biofuels portfolio and today’s announcement not only reinforces our commitment to increasing renewable energy options in Canada, but builds on the strength of local relationships forged in St. Clair Township and the Sarnia-Lambton Region,” said Jay Thornton, executive vice president, energy supply, trading & development.

The company expects its expanded St. Clair Ethanol Plant, along with Suncor’s investment in four wind-power projects across Canada, to offset nearly 1 million tons of carbon dioxide per year—the equivalent of the annual tailpipe emissions of approximately 200,000 cars, according to Suncor.