Enerkem, GreenField to build cellulosic ethanol facility

September 27, 2013, Varennes, Que. (CNW) – Enerkem and GreenField to build and operate a
cellulosic ethanol facility integrated with GreenField's existing
ethanol plant in Varennes, Quebec.

The VANERCO project will receive financial support from the Canadian government through the Sustainable Development Technology Canada NextGen Biofuels Fund. Through the fund, $734,500 will support the initial development of the facility as a repayable contribution, an amount that could go up to $39.8 million.

"Clean technologies which offer a true global alternative to fossil
fuels emerge when industry pioneers, governments, venture capitalists,
and academics work together to ensure a successful transition to the
commercial stage," said Vincent Chornet, Chairman of VANERCO. "SDTC
played a pivotal role by becoming the catalyst that helped all these
players join forces. We are glad to see them on board with us in this
commercial project."

"Our government is investing in advanced clean energy technologies that create well-paying jobs and generate economic opportunities," said the Honourable Joe Oliver, Canada's Minister of Natural Resources. "By supporting innovative projects like VANERCO's, we are helping Canadian companies develop an idea into a marketable reality."

The VANERCO cellulosic ethanol plant will contribute to the ongoing development of the next generation biofuels industry in Canada. In turn, the growing sector of advanced biofuels stimulates the manufacturing sector, creates jobs, generates value from waste materials and reduces oil dependence, imports and greenhouse gas emissions while positioning Canada at the forefront of the global clean technology sector.

"This project truly puts industrial waste to work, creating jobs in the
community while producing as much as 38 million litres of ethanol a
year. SDTC is proud to be a partner in this pioneering project," said
Vicky Sharpe, SDTC President and CEO. "Getting technologies such as this
to a commercial scale will be crucial in helping Canada play a key role
in the dynamic global cleantech marketplace, currently valued at $1
trillion."

The non-recyclable waste to be used at the VANERCO facility will come from institutional, commercial and industrial sectors, and from construction and demolition debris. Construction of the facility, which will use Enerkem's proprietary waste-to-biofuels technology, is planned to begin in 2014.

The plant could access up to $39.8M as it passes through project milestones and required governance approvals.