Company News
ORMI Increases Organic Residual Shipments to Klaesi Anaerobic Digester
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ORMI Increases Organic Residual Shipments to Klaesi Anaerobic Digester
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Toronto, ON, April 15, 2009 - Organic Resource Management Inc. (TSX: ORI) ("ORMI" or "the Company") announced today that the previously announced expansion of the Klaesi anaerobic digester ("AD") at Cobden, Ontario is complete. To fill the increased capacity created by the expansion, ORMI has begun delivering larger quantities of organic feedstock to the AD. The AD's generator now has a capacity of 500KW, a 400KW increase from its original 100KW capacity. The AD is expected to complete its ramp-up to full operating capacity some time in June 2009.
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"We believe widespread use of anaerobic digesters could eventually lead to a new era in organic waste recycling," said Charles Buehler, CEO of ORMI. "The cost reductions and potential for revenue generation from the delivery of organic residuals to anaerobic digesters to produce biogas renewable energy could open substantial new markets for organic waste diversion."
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As previously announced, ORMI has signed an exclusive, 20-year agreement to supply organic residuals as feedstock for the Klaesi AD and began shipping organic residuals to the AD in 2007. The additional biogas needed to power the expanded AD will be generated from a combination of energy crops (corn silage) and increasing amounts of ORMI's organic feedstock to a maximum of 5,000 tonnes per year. ORMI's organic residuals feedstock has exceeded previous expectations by demonstrating the capability to generate significantly more biogas than originally forecast.
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Under the terms of the agreement. ORMI will pay a processing cost to the AD for all residuals delivered, but will receive revenue from the AD proportionate to the amount of biogas renewable energy produced from the ORMI feedstock. The revenue ORMI receives from the AD could eventually exceed the processing costs it pays. Recycling ORMI feedstock through AD's is expected to be significantly more competitive than other organic residual recycling options currently available.
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Additional AD contracts
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Construction is also progressing as planned on three additional Ontario farm-based ADs with which ORMI has signed previously announced 20-year feedstock supply contracts. The Donnandale Farms AD, north of Belleville, is currently expected to come online by July 2009, followed by the Clearydale AD, near Prescott and the Ledgecroft Farms AD north of Kingston, in late summer and fall 2009, respectively. By the end of 2009, ORMI expects to be supplying its organic residuals to at least four farm-based ADs with a combined power generating capacity of 2MW.
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About Organic Resource Management Inc.
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Organic Resource Management is Canada's largest provider of vacuum truck services for the collection, processing and disposal of food-related organic residuals. ORMI services in excess of 6,000 commercial, industrial and institutional customers in Ontario, Quebec, and British Columbia. Further information about ORMI may be obtained at the Company's web site at www.ormi.com.
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Note: Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. 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.
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For further information, contact:
Organic Resource Management Inc.
Charles Buehler Website: www.ormi.com |
The Equicom Group Glen Williams Investor Relations Tel: 416-815-0700 ext. 272 Email: gwilliams@equicomgroup.com
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