Company News
Anaerobic Digester Expansion
download pdfOrganic Resource Management Inc.
3700 Steeles Avenue West, Suite 601
Woodbridge, Ontario L4L 8K8
TEL: (905) 264-7700 FAX: (905) 264-7273
E-mail: info@ormi.com
Website: www.ormi.com
February 19, 2008 TSX Symbol: ORI
NEWS RELEASE
Expansion at Anaerobic Digester to Lower ORMI Recycling Costs
AD to Produce 500 kW of Energy per Hour from Renewable Source
Woodbridge, Ontario - February 19, 2007. Organic Resource Management Inc. (ORMI or the Company) today announced that the Klaesi Anaerobic Digester (AD) has provided notice that it intends to expand it's facilities to accept a minimum of 4,500 tonnes of ORMI's organic residuals - an increase of 3,800 tonnes from the original minimum commitment. The expanded AD is slated to commence operations in October 2008 and reach its new maximum capacity within 90 days of coming on-stream. Once fully functional, the AD is expected to generate about 500 kW, 24 hours per day, 7 days per week - enough energy to supply roughly 1,100 households. ORMI residuals are expected to generate in excess of 75% of the energy produced.
The supply contract with the Klaesi AD provides ORMI with lower recycling costs than it currently pays to deliver residuals to out of province recyclers. Transportation costs are also lower as a result of the AD's proximity to ORMI's service markets. ORMI expects the Klaesi AD expansion to result in significant reduction to its overall residuals recycling costs while helping to generate energy from a renewable resource.
"We are very happy to see that our efforts and patience to find more environmentally-friendly and less costly recycling sources are beginning to pay off, " said Charles Buehler, ORMI CEO and Chairman.
As previously reported, ORMI has a two-stage, 20-year exclusive contract to supply its organic feedstock to the Klaesi AD. Under the first stage of the contract, ORMI began delivering a minimum of 700 tonnes per year of its organic feedstock in July 2007. The second stage of the contract provided Klaesi time to evaluate ORMI's feedstock and an option to significantly expand the AD with the addition of a new 500 kW genset and an upgrade to the interconnection with Hydro One.
Also as previously announced, ORMI's residuals have consistently generated in excess of 10 times more biogas per volume than the manure feedstock at the Klaesi AD. The Company sees this expansion as confirmation of the technical and financial viability of using ORMI's organic residuals as a feedstock in ADs for creating biogas renewable energy.
This press release is available on the Company's official on-line investor relations site. For investor commentary, feedback and questions, please visit the investor relations section of the Company's website at http://www.ormi.com/ORMI_Investor.asp. Alternatively, investors are asked to e-mail all questions and correspondence to info@ormi.com where they can also request addition to the Organic Resource investor e-mail list to receive all future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource Management (TSX Symbol: ORI) is Canada's largest provider of vacuum truck services for the collection, treatment and disposal of organic and other non-hazardous liquid waste. ORMI services in excess of 8,000 commercial, industrial, institutional and residential customers in Ontario, Quebec, and British Columbia. Further information about ORMI may be obtained at the Company's web site: www.ormi.com.
Cautionary Note: Certain information contained in this press release is forward-looking and therefore subject to unknown risks or uncertainties. The AD expansion, and thereby the resulting cost savings announced herein, are reliant on many factors that are not under the Company's control, including but not limited to various regulatory requirements and technical factors. 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.
CONTACT INFORMATION
Corporate Inquiries
Charles H. Buehler,
Chairman & Chief Executive Officer
info@ormi.com
(905) 264-7700 Ext. 112
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