B.C.’s Bioenergy Strategy

Media release from Sustainable Development Technology Canada:

February 14, 2009 – The $25-million provincially funded BC Bioenergy Network is awarding almost $5
million in funding to two biomass pilot projects.

“These
pilot projects will help to further strengthen British Columbia’s
environmental leadership, long-term competitiveness and electricity
self-sufficiency,” said Energy, Mines and Petroleum Resources Minister
Blair Lekstrom. “By converting wood waste into clean energy, these
projects will help ensure that we meet our province’s future energy
demands while at the same time supporting economic growth and job
creation.”

The
British Columbia Bioenergy Network has awarded $1.82 million in funding
to Lignol Innovations Ltd. and a further $3 million in funding to
Nexterra Energy Corp. Lignol uses biorefining technology to turn wood
waste into fuel-grade bioethanol and biochemicals. Nexterra develops
systems that turn wood waste into clean, renewable heat and power using
biomass gasification technology.

“BCBN invests in technologies that can become building blocks of a robust clean bioenergy sector
here in British Columbia,” said Michael Weedon, executive director of BCBN. “As we enter these
uncertain economic times, it becomes crucial that we support smart, innovative and economically tested
technologies that can help expand the industry in British Columbia. BCBN is a leading partner in the
commercialization of these technologies and the opportunities they will bring to the province.”

The
BC Bioenergy Network (BCBN) was established in April 2008 through a
$25-million provincial grant. It is an industry-led association that is
encouraging the development of world-class bioenergy research and
technology, pilot and demonstration projects with industry and
communities in key biomass resource areas. The BCBN has identified the
following technology areas for funding support: solid wood residues,
pulp and paper residues, harvesting and pelletizing, agriculture
residues, municipal wastewater, municipal landfill waste, municipal
solid waste and community heating electricity greenhouse systems.

“Lignol is very pleased to receive this funding from BCBN,” said Ross MacLachlan, president and
CEO of Lignol. “We have invested significantly in British Columbia, culminating in an overall investment
in the region of some $20 million and a workforce of 37 highly skilled and dedicated employees at our
world-class Biorefinery Technology Centre located on the BCIT campus. The support from BCBN will
play a crucial role in our current expansion and continued success.”

B.C.
leads the country in energy production from biomass. Over 800 megawatts
of biomass electricity capacity is installed in the province, enough to
power 640,000 households. Pulp and paper mills meet over a third of
their electricity needs through cogeneration of electricity and steam
on site. In 2008, the B.C. wood pellet industry produced around one
million tonnes of wood pellets, of which 90 per cent was exported for
thermal power production overseas.

“Nexterra is grateful for the continued support from the B.C. government and for its commitment to
making British Columbia a world leader in bioenergy innovation,” said Jonathan Rhone, president and
CEO of Nexterra. “We look forward to helping the Province achieve its goals for affordable and renewable
energy generation using locally supplied biomass. The support from the BCBN will play a crucial role as
we launch a new generation biomass power system for businesses, municipalities and public institutions
throughout the province.”

This funding follows the recent memorandum of understanding between BCBN and Sustainable
Development Technology Canada (SDTC) announced on Jan. 29, 2009. SDTC is an arm’s-length, not-forprofit
corporation created by the Government of Canada, which operates two funds aimed at the
development and demonstration of innovative clean technology solutions. Under the terms of the
agreement, BCBN and SDTC have agreed to work in partnership to identify high-caliber projects within
the B.C. bioenergy sector with the goal of increasing the number of investment opportunities. SDTC is
currently supporting projects led by Lignol and Nexterra.

For more information visit the BC Bioenergy Network.

Encouraging the emerging bioenergy industry and developing new and innovative uses for beetlewood
is part of the BC Bioenergy Plan and the provincial
Mountain Pine Beetle Action Plan.