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NEWS RELEASE

Enerkem offers the Estrie region its expertise in processing residual materials

Montreal (Canada), February 14, 2008 – Enerkem today announced its partnership with TerreEau, a bidder that responded to the call for qualifications issued by the Estrie regional conference of elected officers (Estrie CRÉ) last January, for the processing of residual materials from the Estrie (Eastern Townships) region.

Partners we worked with on this project:
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Enerkem is a recognized leader in the field of gasification and catalytic conversion of synthetic gas, resulting from years of research dating back as early as the 1980s. Contrary to other gasification technologies, which are limited to the production of heat and electricity, Enerkem’s clean-up and conditioning of synthetic gas technology allows for the chemical synthesis of higher-value-added products, such as methanol and ethanol.

Within the context of the Estrie CRÉ project, Enerkem offers its expertise in chemical reclamation of residual materials in collaboration with TerreEau, a firm associated with the BPR engineering group.

Enerkem technology enables the conversion of urban solid waste and forest residue into next-generation biofuels namely, methanol and ethanol. This next-generation biofuel offers many advantages. In particular, it helps solve environmental problems related to waste management and contributes to the reduction of greenhouse gas emissions. The company plans to establish other plants similar to the Westbury plant in the Eastern Townships, which is to be one of the first facilities in the world to produce cellulosic ethanol on an industrial scale. Enerkem is also forging new partnerships, particularly with a major Canadian municipality, for the conversion of its waste into cellulosic ethanol.

“The higher value added products produced allows Enerkem to redefine the approaches applied to the management of residual materials and reduce related costs. By associating ourselves with the sorting and composting expertise of TerreEau, which was recently selected as a potential partner to Haute-Yamaska, we believe we have an environmentally responsible and competitive solution,” says Vincent Chornet, Enerkem’s President and CEO. “Also, the cellulosic ethanol produced would help contribute to meeting the Quebec mandate of a 5% ethanol-gasoline blend by 2012, and this, produced from residues and waste,” Mr. Chornet adds.

The Estrie CRÉ has set up a committee of representatives from the municipalities concerned. This committee should submit its report within the next few weeks. This report will recommend the selection of a maximum of five candidates.

About Enerkem

Enerkem is a leader in the production of cellulosic fuels using a unique clean gasification and catalysis technology, which transforms sorted municipal solid waste and wood residues into ethanol and other biofuels. Enerkem has operated a pilot plant since 2003 and is currently building an industrial-scale cellulosic ethanol plant in Quebec. Other plants will follow in partnership with world class organizations. Enerkem is headquartered in Montreal, Canada, has engineering offices in Sherbrooke, Canada and currently employs 34 people. www.enerkemweb.wpengine.com

Marie-Hélène Labrie, Communications, + 1 514.875.0284 x 231, mlabrie@enerkem.com

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