October 17, 2005

National Challenge, CanAgra study biogas facility for industrial park

National Challenge Systems (NCS) has signed a letter of intent with Canadian Agra (CanAgra) for a feasibility study of a biogas operation capable of producing steam energy for the Bruce Energy Centre ECO-Industrial Park (BEC ECO) operated by CanAgra. The study, which should be completed by early next year, will address the scale of the project and other basic issues.

If the feasibility study confirms the economics, NCS and CanAgra will proceed with the creation of two facilities. The first would be a transfer station organic waste coming into the park and outgoing organic residuals. The second facility would incorporate an anaerobic digester to process the incoming waste and generate methane to produce renewable energy-derived steam for the park's tenants.

NCS provides vacuum truck services for the collection, treatment and disposal of non-hazardous liquid organic waste. The company has been seeking a long-term option within Ontario for recycling the waste it collects in the province.

The BEC ECO, located adjacent to Bruce Nuclear Power Development, has in place a distribution infrastructure to take advantage of clean, renewable energy forms such as steam, but is currently suffering an extreme shortage of organic waste recycling options. An anaerobic digester, processing a consistent supply of liquefied organic wastes from National Challenge, would generate a reliable supply of renewable energy for use by current and future industrial tenants at the Centre, at the same time taking advantage of this infrastructure.

NCS and CanAgra believe the existing infrastructure capacity and the Centre's energy demand have the potential to support a large-scale digester.

CanAgra specializes in training, research and technology aimed at promoting agricultural and environmental sustainability and renewable energy.

More information is available on the NCS and CanAgra Web sites, www.nationalchallenge.com, www.canadian-agra.com.

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