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Alberta funds Otoka at Drayton Valley BioMile
Oct. 23, 2009, Drayton Valley, AB – Scrap treetops and branches from forestry operations in Alberta will soon be converted to electricity at the Drayton Valley Energy Campus. The Alberta government is providing $25 million to develop a waste-to-energy production facility in the town of Drayton Valley. Minnesota-based Otoka Energy Corporation is receiving a $20-million grant from Alberta’s share of the Canada ecoTrust for Clean Air and Climate Change. The project also received $5 million in July 2009 through Alberta’s Biorefining Commercialization and Market Development Program, a program administered by Alberta Energy.

“The Town of Drayton Valley is delighted to have Otoka Energy Corporation as part of our community,” said Drayton Valley Mayor Moe Hamdon. “We have a shared interest in finding clean, renewable and rewarding energy solutions, and this project complements our bio-mile development, an ongoing initiative to create industrial development without waste.”

Otoka’s Drayton Valley Energy Campus will convert an estimated 380,000 tonnes of wood waste into electricity each year once the project is fully operational. The project will reduce Alberta’s greenhouse gas emissions by about 400,000 tonnes each year.

Otoka has plans to develop its Drayton Valley operations in three phases. Phase one includes the construction and operation of the Drayton Valley Energy Campus. The total cost of this development is estimated at $100 million. The next two phases are estimated to cost an additional $140 million and will add a methanogenic reactor to produce natural gas and an upgrader to produce ethanol.