Sulvaris Inc. has received final regulatory approval from Alberta Environment and Sustainable Resource Development (AESRD) and commenced construction of a new Vitasul production facility in central Alberta.

The new facility, which will be built on the site of Keyera Corp.’s existing Strachan gas plant near Rocky Mountain House, Alta., will convert elemental sulphur into Vitasul, a premium plant nutrient sulphur fertilizer. The facility will be jointly owned between Keyera and Sulvaris, with Keyera as operator.

Keyera and Sulvaris first announced plans for the 50-50 joint venture project last March (DOB, March 12, 2013)

The product will be marketed and distributed by Sulvaris. Upon completion, the new facility will have the capacity to produce approximately 217,000 metric tonnes of Vitasul per year, which will be sold into the Canadian, United States and offshore markets.

It is expected that construction and commissioning of the facility will be completed in the fourth quarter of 2014, with production and sales to start immediately upon completion.

Sulvaris’ financing for the project closed in August 2013, whereby ATB Financial provided a senior construction term loan facility and Avrio Capital provided a mezzanine loan facility. The remainder of the proceeds were raised via private placement of shares of the company.

“We have assembled an excellent group of financial partners and the company is excited to have moved into the construction phase of our first Vitasul facility,” Sulvaris president Bill Boycott said in a statement.