News
Strathmore Integrated Biofuels Project Fully Permitted
June 29, 2008Calgary - June 24, 2008 - CR Fuels Inc. is pleased to announce that it has received all key permits to proceed with the development of its integrated biofuels complex located in Strathmore, Alberta.
Approvals received include: approval under the Provincial Environmental, Protection and Enhancement Act and the Alberta Energy Resources Conservation Board; an Alberta Environment Water Diversion License; a Municipal Development Permit; and an Alberta Infrastructure and Transportation Road Side Development Permit.
The Strathmore Project will include a 114 million litre (30 million U.S. gallons) per year biodiesel plant and a 95 million litre (25 million U.S. gallons) per year ethanol plant which will also capture approximately 40,000 tonnes of CO2 annually that would otherwise be emitted into the atmosphere. “With all key permits in place and a sufficient supply of water, this is an exciting time for the company,” said Mr. Gordon Hart, President and CEO of CR Fuels. “Now that we are past this milestone, we are looking to the next phase of engineering and to beginning construction in Q1/09.”
CR Fuels has secured a site, undertaken the first phase of engineering and design work, and received a $5 million grant from the Alberta government to further develop the Strathmore Project. The Company has selected preferred technology partners and will now proceed with more detailed front-end engineering and design work. $5 million in grants under Alberta’s Biorefining Commercialization and Market Development Program and Alberta’s Bioenergy Infrastructure Development Program will provide matching funds for this next phase of engineering and commercial contracting.
“CR Fuels and other bioenergy companies are the new generation of Alberta energy pioneers,” said Mel Knight, Alberta’s Minister of Energy. “The continued development of a strong bioenergy marketplace provides Albertans with real benefits, both economic and environmental.”
“Alberta is committed to helping develop the bioenergy industry and important bioenergy infrastructure such as increased production capacity and biofuel blending facilities. This infrastructure will be crucial as we continue to develop policies that encourage renewable fuel consumption,” continued Knight.
The Canadian House of Commons passed a federal renewable fuels mandate on May 28, 2008. Biodiesel and ethanol provide a sustainable market for Alberta’s agricultural producers and positively affect the economy and environment. The Strathmore Project is expected to provide more than 70 permanent jobs when it is operational and will divert raw materials that would be exported towards valueadded production, adding to the province’s overall economic activity. The Company carefully selected the site to minimize operating costs and maximize the environmental benefits of the Strathmore Project.
“This project is positioned to become the most competitive biofuels facility in western Canada and will help reduce Canada’s greenhouse gas emissions by having one of the smallest carbon footprints in North America,” said Mr. Hart. “The site will allow us to sell wet distillers’ grains to local livestock producers, saving the ethanol plant 35% on its natural gas requirements and the CO2 we’re capturing will be permanently sequestered underground. We will have additional savings on transportation from being close to the agricultural producers and Calgary’s large fuel market, so we expect to be the area’s low-cost producer.”
CR Fuels has engaged Pivotal Capital Advisory to raise equity for further development of the Strathmore Project; an underwriter has not yet been chosen for the pre-construction equity. Debt financing and the balance of equity will be raised later this year and commercial operations are scheduled to begin in the fourth quarter of 2010.
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Certain statements included in this news release constitute “forward-looking information.” Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CR Fuels to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. In providing such forward-looking information we have made various assumptions regarding, among other things, interest rates, foreign currency exchange, projected construction costs, timeframes and the costs of and availability of skilled labour.
The forward-looking information contained in this news release represents the expectations of CR Fuels, and, accordingly, is subject to change. CR Fuels expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
For Further Information contact:
Gordon Hart
President and CEO
CR Fuels Inc.
Tel: (403) 201-3076
E-Mail: ghart@crfuels.com
Internet: http://www.crfuels.com
Terry L. Allen
President
Pivotal Capital Advisory Group Ltd.
Tel: (403) 571-8049
E-Mail: tallen@pivotalcapital.ca
Internet: http://www.pivotalcapital.ca