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Organic Resource Announces Fourth Exclusive Feedstock Supply 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
September 30, 2008 TSX Symbol: ORI
NEWS RELEASE
Organic Resource Announces Fourth Exclusive Feedstock Supply Agreement with Anaerobic Digester
Ensures customer's organic waste conversion to renewable energy
Woodbridge, Ontario - September 30, 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 Clearydale Farms ("Clearydale") located near Spencerville, Ontario. This is the fourth Ontario dairy-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 1,500 cubic metre AD is scheduled to be producing renewable biogas energy 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. Clearydale 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. The Cleary AD will be integrated into their 300 animal unit dairy farm operation. ORMI's high-energy-potential organic residual feedstock will generate in excess of 75% of the energy produced.
"ORMI has an impressive customer service dispatch system dedicated to efficiently serving their customers while harvesting these organic residuals for our farm AD," said Douglas Cleary, who with his wife Mary Whalen and three sons Conor, Samuel and Aiden and two daughters Bridget and Fiona are the 7th generation operating Clearydale since 1845. ORMI harvests high-energy organic residuals from their urban customer base, processes it into clean, concentrated feedstock at their facilities and delivers it to ADs on a consistent schedule. "ORMI's trucks and drivers are just as clean and efficient as the milk collection truck that services my farm. I am sure that ORMI's professionalism will be an added benefit for my farm," added Cleary.
"We are pleased to make another Ontario dairy farm AD project viable through our unique feedstock supply program," said Charles Buehler, Chairman & CEO of ORMI. "We now have AD process capacity to begin generating approximately 2 MW of clean renewable energy within a year. ORMI is embarking upon a new era by assuring our growing customer base the long term security of 100% residuals recovery through partnerships with these four Ontario dairy farms." ORMI's four contracted farms reliably produce 8 million litres of milk annually for Ontarians. "They will just as reliably convert our feedstocks into renewable energy," concluded Buehler.
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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: 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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