Quebec's First Waste-to-Biofuels Facility

News release from Enerkem:


Enerkem and GreenField Ethanol Announce Quebec's First Waste-to-Biofuels Production Facility

VARENNES, Québec, February 6, 2012 – At a news conference in Varennes today, the
Government of Québec announced its plan to inject $27 million in Québec’s first
full-scale commercial cellulosic ethanol plant through the Ministry of Natural Resources
and Wildlife and Investissement Québec.  This facility will be built and operated by a
joint venture partnership formed by Enerkem (www.enerkem.com), a waste-to-biofuels
and chemicals company, and GreenField Ethanol (www.greenfieldethanol.com), the
Canadian leader in alcohol production.

The future plant will be located in Varennes, Québec and will use Enerkem’s proprietary
technology to convert non-recyclable municipal solid waste into biofuels.  With a
full-scale waste-to-biofuels facility under construction in Edmonton, Alberta, and another
one under development in Mississippi, the Varennes facility represents Enerkem’s third
full-scale commercial project.

"By producing liquid transportation fuel from non-recyclable waste, this facility opens the
door to the emergence of a new energy sector and will allow for local sustainable
management of our waste materials", declared Vincent Chornet, Enerkem President
and CEO. "Located on the site of Ethanol GreenField's current plant, this project will
represent one of the first integrations between an existing, first generation ethanol plant
and a new cellulosic ethanol plant."

"The construction of this innovative plant on our current site marks the beginning of our
transition to an integrated biorefinery in Varennes", said Jean Roberge, General
Manager, GreenField Ethanol Québec.  "We are pleased to partner with Enerkem and
integrate their technology to build Québec’s first full-scale commercial cellulosic ethanol
plant.  The use of waste materials, that is made possible with Enerkem's technology,
complements GreenField Ethanol R&D efforts with other types of biomass. "This waste-to-biofuels production facility will help reduce greenhouse emissions, fossil
fuel imports and landfilled volumes.  The non-recyclable waste will come from
institutional, commercial and industrial sectors, and from construction and demolition
debris. The anticipated annual production capacity of this plant is approximately
38 million litres.

"In addition to presenting a solution to landfilling, today's announcement will enable
greenhouse gas emission reductions by about 110,000 metric tons of CO2 per year.
Cellulosic ethanol is a renewable fuel that will contribute to reducing our dependence on
petroleum products. By supporting this project, our government is concretely reinforcing
energy security for Québec. Today's announcement puts Québec in an advantageous
position in the search for alternatives to fossil fuel consumption", outlined Minister
Clément Gignac.

"Québec has resolved to reduce, by 2020, its greenhouse gas emissions to 20% below
1990 levels, as part of its 2006-2012 Climate Change Action Plan. We believe we can
be productive and create wealth and jobs, all while protecting our environment. The
construction of the cellulosic ethanol facility belonging to the joint venture formed by
Enerkem and GreenField Ethanol, is one step closer towards reducing our greenhouse
gas emissions. It is with solid and structured projects, such as the one presented today,
that Québec will reassert its leadership in a green and sustainable economy",
commented Minister Sam Hamad.

The $27 million contribution from the Government of Québec includes $18 million in
financial assistance from the Ministry of Natural Resources and Wildlife and a $9 million
loan from Investissement Québec.