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Enerkem secures offtake agreement with Methanex Corporation, the world's largest supplier of methanol

MONTREALSept. 14, 2011 /CNW Telbec/ - Enerkem Inc., a waste-to-biofuels and chemicals company, announced today it has entered into an offtake agreement with Methanex Corporation (TSX: MX; NASDAQ: MEOH; SANTIAGO: Methanex) for the sale of methanol to be produced at Enerkem's facility in Edmonton, Alberta, Canada.

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"The access to Methanex Corporation's worldwide distribution network coupled with our ability to produce methanol from non-recyclable waste represents a timely opportunity for Enerkem in the development of its commercial activities", said Vincent Chornet, President and CEO of Enerkem.  "Our proprietary technology platform allows for the production of renewable fuels and chemicals, including methanol, which we can sell as an end-product or convert into cellulosic ethanol."

Vanessa James, Vice-President, North America, Marketing and Logistics of Methanex commented, "We are pleased to add another supply source for our North American customers and to be working with Enerkem to develop markets for renewable methanol. Methanol is a viable and economic alternative fuel and, when produced from waste, it is an important step towards broader acceptance in a number of markets."

Methanol is a versatile chemical building block used in countless industrial and everyday consumer products. Enerkem Alberta Biofuels LP, Enerkem's subsidiary in Edmonton, is expected to initially produce and sell methanol.  The plant will subsequently produce cellulosic ethanol from methanol.  Commercial production plant capacity is expected to be 36 million litres (10 million gallons) per year.

About Enerkem

Enerkem develops biofuels and chemicals from waste. With its proprietary thermochemical technology, Enerkem converts abundantly available municipal solid waste (mixed textiles, plastics, fibers, wood and other non-recyclable waste materials) into chemical-grade syngas, and then methanol, ethanol and other chemical intermediates that form everyday products.  By using waste instead of fossil fuels, Enerkem addresses the growing demand for renewable energy sources and chemicals, while reducing landfill volumes and greenhouse gas emissions.  Headquartered in Montreal, Canada, the company currently operates both a pilot and a commercial demonstration facility in Quebec, has its first waste-to-biofuels full-scale commercial plant under construction in Edmonton, Alberta, and is developing several similar facilities in the U.S. and Canada that will convert municipal solid waste into biofuels and chemicals.

Source:    Marie-Hélène Labrie
  Vice President, Government Affairs and Communications
  +1 514.875.0284, x. 231

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