Enerkem Finds Buyer of Methanol from its Waste-to-Fuels Plant

Date: September 15, 2011

Source: Enerkem Inc.

Montreal-based Enerkem Inc., which is developing waste-to-biofuels and chemicals projects, said it has signed an agreement under which Methanex Corp., will buy methanol to be produced at Enerkem's new Edmonton production plant. "Our ability to produce methanol from non-recyclable solid waste, along with access to Methanex's worldwide distribution network, represents a timely opportunity to develop our commercial activities," Enerkem CEO Vincent Chornet said. Enerkem converts municipal solid waste into chemical-grade syngas and then methanol and other chemicals and intermediates. It operates a commercial plant in Quebec and is building a full-scale production plant in Edmonton. Waste Management (Houston, TX) and others have invested in the company.


PRESS RELEASE
September 14, 2011

Enerkem secures offtake agreement with Methanex Corporation, the world's largest supplier of methanol

Enerkem Inc., a waste-to-biofuels and chemicals company, announced today it has entered into an offtake agreement with Methanex Corporation (TSX: MX; NASDAQ: MEOH; SANTIAGO: Methanex) for the sale of methanol to be produced at Enerkem's facility in Edmonton, Alberta, Canada.

"The access to Methanex Corporation's worldwide distribution network coupled with our ability to produce methanol from non-recyclable waste represents a timely opportunity for Enerkem in the development of its commercial activities", said Vincent Chornet, President and CEO of Enerkem. "Our proprietary technology platform allows for the production of renewable fuels and chemicals, including methanol, which we can sell as an end-product or convert into cellulosic ethanol."

Vanessa James, Vice-President, North America, Marketing and Logistics of Methanex commented, "We are pleased to add another supply source for our North American customers and to be working with Enerkem to develop markets for renewable methanol. Methanol is a viable and economic alternative fuel and, when produced from waste, it is an important step towards broader acceptance in a number of markets."

Methanol is a versatile chemical building block used in countless industrial and everyday consumer products. Enerkem Alberta Biofuels LP, Enerkem's subsidiary in Edmonton, is expected to initially produce and sell methanol. The plant will subsequently produce cellulosic ethanol from methanol. Commercial production plant capacity is expected to be 36 million litres (10 million gallons) per year.

About Enerkem

Enerkem develops biofuels and chemicals from waste. With its proprietary thermochemical technology, Enerkem converts abundantly available municipal solid waste (mixed textiles, plastics, fibers, wood and other non-recyclable waste materials) into chemical-grade syngas, and then methanol, ethanol and other chemical intermediates that form everyday products. By using waste instead of fossil fuels, Enerkem addresses the growing demand for renewable energy sources and chemicals, while reducing landfill volumes and greenhouse gas emissions. Headquartered in Montreal, Canada, the company currently operates both a pilot and a commercial demonstration facility in Quebec, has its first waste-to-biofuels full-scale commercial plant under construction in Edmonton, Alberta, and is developing several similar facilities in the U.S. and Canada that will convert municipal solid waste into biofuels and chemicals.

For more information, contact:
Marie-Hélène Labrie
Vice President, Government Affairs and Communications
ENERKEM INC.
+1 514.875.0284, x. 231
www.enerkem.com.

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