Terasen Gas targets farms, sewage treatment plants and landfills in call for new biogas energy sources



    
    Organic waste could provide energy for thousands of B.C. homes and
    businesses under new alternative program
    

    SURREY, BC, Sept. 17 /CNW/ - Terasen Gas has announced plans for a new
B.C.-wide alternative energy program seeking supplies of bio-methane developed
from the conversion of organic waste from sewage treatment facilities,
landfill sites, the agricultural sector and other industry that can be used as
an energy source to heat homes and businesses, provide fuel for hot water
heaters, stoves, clothes driers and barbecues.
    "We are issuing a call to municipalities, waste management companies,
farms and other businesses to bring forward opportunities whereby new
facilities could be built or existing ones upgraded to allow the production of
bio-methane and its conversion into a clean and renewable energy source," said
Doug Stout, Terasen Gas Vice President, Marketing and Business Development.
"This initiative supports the B.C. Energy Plan's objective to increase the
province's production of clean and renewable energy, while reducing emissions
from waste methane, which is 21 times more powerful in warming the atmosphere
than CO2."
    The Terasen Gas Request for Expressions of Interest invites proposals to
develop facilities that will collect and produce biogas from organic waste
material. The gas produced will then be converted to pipeline quality and
injected into the Terasen Gas system.
    "The Lower Mainland alone produces enough organic waste that once
processed, could heat 45,000 homes, or provide the equivalent amount of energy
to run 2,250 diesel-fuel buses per year," said Stout. "Using innovative
solutions, Terasen Gas would like to capture and use as much of this clean
energy source as possible."
    The plan expands on an existing $1.1 million innovative pilot project
already underway to capture and purify biogas from West Vancouver's Lions Gate
wastewater treatment plant, which will heat 100 homes. The new program will
also target restaurant food waste, beer and winery by-products, and methane
generated by other sewage treatment plants.
    Information sessions to gather feedback and responses are planned for
around the province this fall, after which the formal Request will be
finalized. The submission deadline for expressions of interest is February 2,
2009. More details are available in the attached backgrounder and online at
www.terasengas.com/biogas.

    Terasen Gas delivers natural gas and propane through three companies that
make up the Terasen Gas group: Terasen Gas Inc., Terasen Gas (Vancouver
Island) Inc. and Terasen Gas (Whistler) Inc. The companies share common
Terasen Inc. ownership and are indirect wholly owned subsidiaries of Fortis
Inc. Fortis Inc., the largest investor-owned distribution utility in Canada,
serves two million gas and electric customers and has more than $10 billion of
assets. Its regulated holdings include Terasen Gas and electric utilities in
five Canadian provinces and three Caribbean countries. Fortis Inc. owns
non-regulated hydroelectric generation assets across Canada and in Belize and
upper New York State. It also owns hotels and commercial real estate in
Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade
under the symbol FTS. Additional information can be accessed at
www.fortisinc.com or www.sedar.com.

    
    Terasen Gas
    Biogas Request for Expressions of Interest

    BACKGROUNDER

    What is the Terasen Gas Request for Expressions of Interest (RFEOI)?
    --------------------------------------------------------------------
    

    On September 17, 2008 Terasen Gas issued its preliminary Request for
Expressions of Interest for biogas production. A draft RFEOI document will be
posted on the Terasen Gas website by September 30, 2008 for consideration and
comment.
    Based on stakeholder response and feedback over the next several months,
Terasen Gas expects to issue a final RFEOI on December 1, 2008.
    At that time, interested parties can submit a proposal outlining their
plan for a biogas collection and production facility. Terasen Gas would
purchase the raw biogas by way of a contract with the producer, upgrade the
gas to pipeline quality, and inject it into its natural gas distribution
system. Terasen Gas will also consider opportunities to use the biogas in
district energy systems, distributed electricity generation and combined heat
and power applications. Other proposed project models will also be considered.
    The final deadline for proposal submissions is 4:30 pm on February 2,
2009.

    
    What types of projects will be considered?
    ------------------------------------------

    Potential biogas sources could include the following types of projects,
but Terasen Gas will consider other submissions as well:

    -   Wastewater (sewage) treatment biogas recovery - municipalities
    -   Landfill biogas recovery - municipalities and waste management
        businesses
    -   Biogas from agricultural waste - farm operators or other agricultural
        businesses
    -   Biogas from industrial processes - food and/or beverage processing
        businesses
    -   Other industries that use or process organic material
    -   Other - entrepreneurs who can facilitate the development of biogas
        production from any of the above listed organic material sources

    Where can I find more information about the RFEOI?
    --------------------------------------------------
    

    Visit www.terasengas.com/biogas for more information about the RFEOI
process, background information and links to other biogas information
resources.
    Terasen Gas will also be hosting information sessions across B.C. to
provide more information, answer questions, and gather feedback from
stakeholders and potential respondents about the RFEOI process. Sessions will
be held in the B.C. Interior, Lower Mainland, Vancouver Island, Kootenays and
the Prince George area in October and November. Times, dates and exact
locations will be posted on the Terasen Gas website www.terasengas.com/biogas
as available.

    
    How can I get involved and stay informed?
    -----------------------------------------
    

    Those interested in participating in Terasen Gas's Biogas RFEOI, or who
want to stay informed about the process, should email biogas@terasengas.com,
or call Rose Jacques at (604) 592-7844. Please provide your name and contact
information and indicate that you would like to receive future notifications
about Terasen Gas's Biogas RFEOI.

    
    What is Biogas?
    ---------------
    

    Biogas is a clean energy source that can be used for heating
applications, electricity generation or as a transportation fuel. Biogas is
primarily composed of methane (CH(4)), produced through anaerobic digestion of
organic material from sources such as landfill sites, wastewater treatment
facilities, agricultural waste management and certain industrial processes. It
is often referred to as 'renewable natural gas'.
    Biogas collection and management systems capture the greenhouse gases
that would otherwise be vented directly into the atmosphere. Processing and
injecting biogas into the pipeline system also provides the benefits of
replacing traditionally sourced natural gas and being able to store biogas
until it is needed.
    Additional information and background on biogas is available at the
following websites:

    
    -   Terasen Gas 2008 Resource Plan:
        http://www.terasengas.com/documents/submissions/080627_2008
        _TGI_TGVI_TGW_Resource_Plan.pdf

    -   Feasibility Study - Anaerobic Digester and Gas Processing Facility in
        the Fraser Valley:
        http://www.bcic.ca/industry/life-sciences/biorefining

    -   Feasibility Study - Biogas Upgrading and Grid Injection in the Fraser
        Valley, British Columbia:
        http://www.bcic.ca/industry/life-sciences/biorefining

    -   BC Energy Plan: http://www.energyplan.gov.bc.ca
    





For further information:

For further information: Media contact: Michael Chisholm, Corporate
Communications Manager, Terasen Gas Inc., (604) 576-7300, Email:
Michael.Chisholm@terasengas.com

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