TORONTO, Feb. 18 /CNW/ - Organic Resource Management Inc. (TSX-V: ORI) ("ORMI" or "the Company") announced today that it has signed an exclusive, 20-year agreement to supply organic residuals to a farm-based Anaerobic Digester ("AD") at the Delft Blue, "Corner Farm", a division of Grober Group Inc., located near Cambridge, Ontario. This is the fifth Ontario farm-based AD to contract with ORMI to receive off-farm organic residuals for conversion into energy.
During the term of the agreement, ORMI will deliver a minimum of 5,000 cubic metres of organic residuals per year and ORMI will pay a processing cost ("Tip Fee") that will be adjusted downward based on the actual performance of biogas renewable energy produced from the ORMI feedstock. The resulting net Tip Fee is expected to be significantly more competitive than other organic residual recycling options currently available.
The AD is scheduled to begin producing renewable biogas energy in the summer of 2010. Once fully functional, the AD is expected to generate approximately 500 kW, 24 hours per day, 7 days per week - enough energy to supply roughly 400 households. Delft Blue will be energy self-sufficient and sell electricity to the Cambridge and North Dumfries Hydro Inc. ("CNDH") distribution grid under the Ontario Green Energy Act Feed-In Tariff program. The Delft Blue AD will be integrated into its veal farm operation. ORMI's high-energy-potential organic residual feedstock will generate in excess of 75% of the energy produced.
Jerry Bartelse, President of Grober Group Inc., stated, "Through our partnership with ORMI, we can now profitably reuse all the organic waste products we generate to produce electricity, help protect the environment and demonstrate responsible business practices."
"We are excited by the opportunity to partner with Grober Group and to embark on another Ontario farm-based AD project," said Charles Buehler, Chairman & CEO of ORMI. "We believe that this new agreement is testament to the quality of our AD feedstock and the value of our partnership."
"We are in substantive discussions with a number of other ADs to reach additional exclusive feedstock supply agreements in calendar 2010," added Mr. Buehler. "Widespread use of ADs could eventually lead to a new era in organic waste recycling and open substantial new markets for organic waste diversion."
"As a local distribution company, Cambridge and North Dumfries Hydro Inc. has been entrusted with an important role of fully supporting the Green Energy and Green Economy Act, 2009. One feature is the need to encourage and promote the build of renewable generation." CNDH President and CEO, John Grotheer confirmed, "With the need for renewables, we support and applaud Delft Blue's commitment to the production of renewable electricity through biogas. Innovative generation projects of this type are for the betterment of the community and align with the long term goals for our province. The team dedicated to this project, stayed the course and designed an environmentally superior means of generating renewable energy. Well done!"
About Organic Resource Management Inc.
Organic Resource Management is Canada's largest provider of vacuum truck services for the collection, processing and recycling of food-related organic residuals. ORMI services in excess of 6,000 regular scheduled commercial, industrial, institutional and residential customers in Ontario, Quebec and British Columbia. Further information about ORMI may be obtained at the Company's web site at www.ormi.com.
About Grober Group Inc.
The Grober Group is a vertically integrated group of three companies dedicated to veal production and processing for North American markets. Grober Inc. (Grober) controls the animal feed production division. Delft Blue/Ecolait Farms are the divisions devoted to raising veal calves; and Delft Blue/Ecolait is the Group's meat processing division. For further information about the Grober Group, please visit the company's website at www.grober.com.
Note: Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.
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SOURCE Organic Resource Management Inc.
For further information: For further information: Organic Resource Management Inc., Charles Buehler, Chairman and CEO, Tel: (416) 580-8574, Email: firstname.lastname@example.org, Website: www.ormi.com; The Grober Group, Heather Copland, Marketing and Communications Manager, Tel: (519) 622-2500 ext. 240, Email: email@example.com; The Equicom Group, Glen Williams, Investor Relations, Tel: (416) 815-0700 ext. 272, Email: firstname.lastname@example.org