TORONTO, April 16 /CNW/ - Organic Resource Management Inc. (TSX: ORI)
("ORMI" or "the Company") announced today that the previously announced
expansion of the Klaesi anaerobic digester ("AD") at Cobden, Ontario is
complete. To fill the increased capacity created by the expansion, ORMI has
begun delivering larger quantities of organic feedstock to the AD. The AD's
generator now has a capacity of 500KW, a 400KW increase from its original
100KW capacity. The AD is expected to complete its ramp-up to full operating
capacity some time in June 2009.
"We believe widespread use of anaerobic digesters could eventually lead
to a new era in organic waste recycling," said Charles Buehler, CEO of ORMI.
"The cost reductions and potential for revenue generation from the delivery of
organic residuals to anaerobic digesters to produce biogas renewable energy
could open substantial new markets for organic waste diversion."
As previously announced, ORMI has signed an exclusive, 20-year agreement
to supply organic residuals as feedstock for the Klaesi AD and began shipping
organic residuals to the AD in 2007. The additional biogas needed to power the
expanded AD will be generated from a combination of energy crops (corn silage)
and increasing amounts of ORMI's organic feedstock to a maximum of 5,000
tonnes per year. ORMI's organic residuals feedstock has exceeded previous
expectations by demonstrating the capability to generate significantly more
biogas than originally forecast.
Under the terms of the agreement, ORMI will pay a processing cost to the
AD for all residuals delivered, but will receive revenue from the AD
proportionate to the amount of biogas renewable energy produced from the ORMI
feedstock. The revenue ORMI receives from the AD could eventually exceed the
processing costs it pays. Recycling ORMI feedstock through ADs is expected to
be significantly more cost competitive than other organic residual recycling
options currently available.
Additional AD contracts
Construction is also progressing as planned on three additional Ontario
farm-based ADs with which ORMI has signed previously announced 20-year
feedstock supply contracts. The Donnandale Farms AD, north of Belleville, is
currently expected to come online by July 2009, followed by the Clearydale AD,
near Prescott and the Ledgecroft Farms AD north of Kingston, in late summer
and fall 2009, respectively. By the end of 2009, ORMI expects to be supplying
its organic residuals to at least four farm-based ADs with a combined power
generating capacity of 2MW.
About Organic Resource Management Inc.
Organic Resource Management is Canada's largest provider of vacuum truck
services for the collection, processing and disposal of food-related organic
residuals. ORMI services in excess of 6,000 commercial, industrial and
institutional customers in Ontario, Quebec, and British Columbia. Further
information about ORMI may be obtained at the Company's web site at
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.
For further information:
For further information: Organic Resource Management Inc., Charles
Buehler, Chairman and CEO, Tel: (416) 580-8574, Email: email@example.com,
Website: www.ormi.com; The Equicom Group, Glen Williams, Investor Relations,
Tel: (416) 815-0700 ext. 272, Email: firstname.lastname@example.org