Enerkem finalist in CCEMC Grand Challenge

April 17, 2014, Montreal, Que. – Enerkem announced that its
R&D project to convert carbon from industrial waste CO2 and natural gas
into chemicals, such as propanol, propionic acid and acrylic acid, has been
selected as a finalist in the first round of The Climate Change and Emissions
Management Corporation (CCEMC) "Grand Challenge: Innovative Carbon
Uses". The Grand Challenge funds innovative ideas from around the world
that will create new, carbon-based products and markets.

The announcement was made in Edmonton at ZERO 2014: A
Conference for a Low Carbon Future. As a Grand Challenge Round One finalist,
Enerkem will receive C$500,000 to further advance its biorefinery technology
for the development of green chemicals from waste streams. Finalists were
selected from 344 submissions from 37 countries on six continents.

"We are incredibly proud to be recognized for our
innovations and their commercial applications. This R&D project is a good
example of the full potential of our technology to produce chemicals, in
addition to biofuels, by chemically recycling waste streams," said Vincent
Chornet, President and CEO of Enerkem. "We are pleased to be in the
esteemed company of the other Grand Challenge finalists and believe that
together we can transform the way communities around the world take on climate
change and reduce greenhouse gas emissions."

Since 2010, the CCEMC has committed to fund more than 80
projects that have a combined value of $1.6 billion. They are estimated to
reduce greenhouse gas emissions by approximately 10 megatonnes by 2020, with
additional emissions reductions as technology is commercialized and deployed. A
reduction of 10 megatonnes in greenhouse gas emissions is enough to take about
2 million cars off the road.

"The CCEMC is pleased to support Enerkem in their
leading efforts to develop a cost-effective technology to convert carbon
dioxide into syngas and chemicals using catalytic conversion, and reduce
greenhouse gas emissions in the process," said CCEMC Chair Eric
Newell.