Company News
Organic Resource Announces Second Exclusive Agreement with Anaerobic Digester
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
August 20, 2008 TSX Symbol: ORI
NEWS RELEASE
Organic Resource Announces Second Exclusive Agreement with Anaerobic Digester
Recycling process will convert organic waste into renewable energy
Woodbridge, Ontario - August 20 2008. Organic Resource Management Inc. ("ORMI") today announced that it has signed an exclusive, 20-year agreement to supply organic residuals to a farm-based Anaerobic Digester ("AD") at Ledgecroft Farms Inc. ("Ledgecroft") located north of Kingston at Seeley's Bay, Ontario. This is the second Ontario farm-based AD to contract with ORMI to receive off-farm organic residuals for conversion into energy.
During the term of the agreement ORMI will deliver a minimum of 5,000 cubic metres per year of organic residuals. ORMI will pay a processing cost ("Tip Fee") that will be adjusted downward based on the actual performance of biogas renewable energy produced from the ORMI feedstock. The resulting net Tip Fee is expected to be significantly more competitive than other organic residual recycling options currently available.
The 1500 cubic metre AD, which will produce renewable biogas energy, is scheduled to be operational in the summer of 2009. 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 400 households. Ledgecroft will be energy self-sufficient and sell electricity to the Hydro One distribution grid under the Ontario Power Authority's Renewable Energy Standard Offer Program.
"We are pleased to once again be playing a part in making on-farm AD projects viable and look forward to participating in additional projects within this fledging renewable energy industry." said Charles Buehler, Chairman & CEO of ORMI.
"Our agreement with ORMI secures additional farm income from the energy generated by recycling the organic residual ORMI harvests from its urban customer base," said Ben Green of Ledgecroft. Ben his wife Laura and son Glenn have owned and operated Ledgecroft Farms since 1971. Their AD will be integrated into their 470 animal unit dairy farm operations. The manure available on a farm even of this size requires the addition of ORMI's high-energy-potential organic residual to make the AD project economically viable. ORMI's feedstock will generate in excess of 75% of the energy produced.
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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/ir/index.php. 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:http://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
(905) 264-7700 Ext. 112
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