Enerkem GreenField Alberta Biofuels Awarded Permit to Build World's First Commercial Municipal Waste-to-Biofuels Facility

    Plant enables City of Edmonton to increase its waste diversion rate from
    60 to 90% and to produce an alternative transportation fuel

    MONTREAL, May 20 /CNW Telbec/ - Enerkem, a leading waste-to-biofuels
technology company, today announced that Enerkem GreenField Alberta Biofuels
(EGAB) has successfully completed the necessary environmental regulatory
process and has been granted a permit to commence construction of a commercial
facility to produce biofuels and green chemicals from sorted municipal solid
waste in Edmonton, Alberta.
    "This is North America's first unconditional commercial permit ever
awarded to produce advanced biofuels from sorted municipal solid waste. This
unprecedented project is set to change the dynamics of the waste and fuel
industries by making waste - that would otherwise be landfilled - a resource
for transportation fuels," said Vincent Chornet, President and Chief Executive
Officer of Enerkem. "The City of Edmonton is a leader in waste management and
is now pioneering this solution which is to become a model for cities around
the globe"
    The permit was granted by Alberta Environment under the Environmental
Protection and Enhancement Act of the Province of Alberta. The regulatory
process entails a series of meetings and studies as well as a consultation
with the public. The project successfully met all required regulatory
environmental standards including air emissions and was awarded a permit
allowing for construction and operation.
    In 2008, EGAB entered into a 25-year agreement with the City of Edmonton
to build and operate a waste-to-biofuels facility on municipal land and to
receive the City's sorted municipal solid waste as feedstock. The City of
Edmonton will supply 100,000 tonnes of sorted municipal solid waste per year.
The sorted municipal solid waste to be used is the end-waste after recycling
and composting. These residues would otherwise be landfilled.
    Construction of the biofuels facility is expected to begin by the end of
2009, at a total cost of approximately CDN$70 million. The City of Edmonton
and the Province of Alberta, through the Alberta Energy Research Institute
(AERI), are contributing a combined CDN$20 million to its production. Upon
completion, the facility will initially produce 36 million litres (9.5 million
gallons) of ethanol per year, reducing Alberta's carbon dioxide (CO2)
footprint by more than 6 million tons over the next 25 years - the equivalent
of removing 12,000 cars off the road every year. The plant will also
contribute to meeting the Canadian and provincial 5% renewable fuel mandate.

    About Enerkem GreenField Alberta Biofuels

    Enerkem GreenField Alberta Biofuels (EGAB) is a limited partnership
created to conduct the construction and operation of a municipal
waste-to-biofuels plant using the Enerkem technology in Edmonton, Alberta.

    About Enerkem

    Enerkem (www.enerkem.com) is a leading waste-to-biofuels and green
chemicals technology company. It has developed a unique gasification,
sequential gas conditioning and catalysis technology platform capable of using
a mix of feedstock such as sorted municipal solid waste, forest biomass and
agricultural residues. The company is headquartered in Montreal, Quebec, and
has engineering offices in Sherbrooke, Quebec. It has a pilot plant in
operation since 2003 in Sherbrooke, Quebec. Enerkem's first commercial-scale
plant is based in Westbury, Quebec. The company is also involved in the
development of a municipal waste-to-biofuels plant in Edmonton, Alberta, and
recently announced the development of a second-generation biofuels production
facility to be located in Pontotoc, Mississippi. Enerkem is a private company
financed by leading US venture capital firms Rho Ventures and Braemar Energy
Ventures, the Canadian investment fund BDR Capital and the Company's

    About Greenfield Ethanol

    GreenField Ethanol Inc. (www.greenfieldethanol.com) is Canada's leading
ethanol producer. The company produces 550 million litres a year of ethanol at
its plants in Johnstown, Chatham and Tiverton, Ontario and in Varennes,
Quebec. Another plant is in development in Hensall, Ontario. GreenField is
actively involved in the development of a biochemical process technology to
produce cellulosic ethanol at its research facilities in Chatham, Ontario. The
company is also working with Enerkem Inc. to build thermochemical cellulosic
ethanol plants. GreenField's ethanol is available at more than 1,300 gas
stations across Canada.

For further information:

For further information: Marie-Hélène Labrie, Vice-President, Government
Affairs and Communications, Enerkem, (514) 875-0284 x231, mlabrie@enerkem.com

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