November 19, 2007

Gasification facility will help CP dispose of scrap railway ties while producing energy

CALGARY, ALTA-A new agreement between Canadian Pacific and the Aboriginal Cogeneration Corporation (ACC) will give the railway an effective, economical, and environmentally safe disposal method for its scrap railway cross ties. Through the agreement, the scrap ties will be converted to useable energy by means of gasification. This process will generate a combustible gas that can be used to operate an electrical generator which in turn will feed electrical power into existing transmission grids. The plant is designed to gasify any biomass waste products, reducing greenhouse gas emissions while at the same time creating useable energy. The ACC expects to be operating its first facility in Ashcroft, British Columbia by spring 2008. CP's operations will also benefit from this location as it will cut transportation distance for disposal of the scrap ties, thus helping shrink the railway's carbon footprint. The agreement is the result of discussions that began in 2005 and makes Canadian Pacific the first Class I railway to commit to this disposal method, noted ACC president Kim Sigurdson. Bill Montour, the ACC's board chairman, noted that the agreement "will see 250,000 scrap ties a year disposed of at our facility, as well as bring employment opportunities and economical benefits to aboriginal communities." CP president and CEO Fred Green said the project "allows us to utilize this ecologically-responsible company. The ACC's mandate aligns with CP's commitment to the First Nation communities we operate in, as well as our environmental sustainability initiatives," he added. The ACC's small-footprint gasification plants range in size from ten-kilowatt to one-megawatt power production and are packaged to meet the strictest environmental requirements and permits. More information is available from Breanne Feigel at CP, 403/319-3932, E-mail, or Kim Sigurdson at ACC, 204/283-1484.

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