Enligna to expand NS wood-pellet production

Oct. 8, 2009 – Wood pellet manufacturer Enligna
Canada is expanding its production capabilities in Upper Musquodoboit, Nova
Scotia, to meet international demands. The province, through Nova Scotia
Business Inc. (NSBI), is supporting Enligna Canada with a $2.42-million term
loan. This financing will help the company improve and upgrade its pellet mill
facilities.

"We're pleased to see
a strong international player like Enligna investing in this Nova Scotia
community," said Percy Paris, minister of economic and rural development.
"The company's commitment to renewable energy will have a positive and
lasting impact on the people in Upper Musquodoboit and the province."

With headquarters in
Germany, Enligna's Canadian operation is the fourth largest producer of wood
pellets in Canada. The company uses sawmill and chipping waste, along with
other wood byproducts that are unsuitable for sawmill or pulp operations, to
produce wood pellets that are used for generating power and heat.

"As a veteran
exporter to European markets, we are seeing more and more demand for renewable
energy sources such as wood pellets," said Fraser Gray, president of
Enligna Canada. "This financing has helped us purchase new machinery to
meet growing international demand for our products."

Enligna has expanded its
operations on the former MacTara site and currently employs 58 people. The
company also works with about 20 independent harvesters to supply raw
materials.

"Enligna has embarked
on a significant expansion, and our loan program is helping the company achieve its
next level of growth," said Stephen Lund, president and CEO of NSBI.
"Our loans help Nova Scotia companies that are at a critical stage of
development and are looking for financial assistance to help secure new
business opportunities."