Sludge Watch ==> Canadian Gov't provides $900, 000 for papermill biomass plant

[Maureen Reilly]

Canadian Government to Invest $900,000 in Thermal Energy's Bioenergy 
Technology
    Repayable investment approved for pending bioenergy facility at Eastern
    Canada pulp and paper mill

    OTTAWA, Feb. 20 /CNW Telbec/ - Thermal Energy International Inc.
(TSX-V: TMG) (www.thermalenergy.com) is pleased to announce that Natural
Resources Canada (NRCan) has committed $900,000 in funding toward the
development of a green energy power facility proposed for an eastern Canada
pulp and paper mill.
    The funding would be provided under a repayable contribution agreement
from NRCan's Climate Change Interim Strategy Technology Early Action 
Measures
(TEAM) Fund to "demonstrate the performance and energy efficiency 
improvements
of a combined biomass dryer/energy recovery system in order to reduce
emissions and fossil fuel use at a Canadian pulp and paper mill."
    Thermal Energy President and CEO Tim Angus said the Company "is very
pleased to receive this important support from the federal government for a
project which could become a showcase solution for many industries looking 
to
reduce their fossil fuel consumption and replace that demand with efficient
use of biofuel created from biowaste."
    The project under consideration stems from a Letter of Intent (LOI)
signed with an Eastern Canada pulp and paper mill (see press release dated
September 18, 2007) for the design and installation of a DRY-REX(TM) low
temperature biomass drying system. As per the LOI, Thermal Energy has
completed a detailed feasibility study which has been presented to the mill
for its review. A decision by the mill is expected this fiscal year.

    To Reduce Oil Use and Cut Greenhouse Gases

    The proposed project would provide significant energy cost reductions 
and
environmental benefits. These would be achieved in part by diverting more 
than
120 tonnes per day of pulp and paper sludge away from landfill for use as
biofuel. This would reduce the use of fuel oil and achieve a commensurate
reduction in emissions including an estimated 69,000 tonnes of greenhouse
gases (i.e. C02) a year.

    The proposal as submitted would also see the mill enter into a
multi-million dollar green energy supply contract using the Thermal-AUD(TM)
(Alternate Utility Delivery) program through Thermal Energy's energy 
services
subsidiary ForEverGreen Energy Inc. The green energy would be created from
drying the mill's biomass waste stream including paper sludge for use as a
biofuel, utilizing a combination of Thermal Energy's FLU-ACE(R) waste heat
recovery technology and the DRY-REX(TM) technology.

    The project would require no upfront capital investment from the mill,
which would start to realize the benefits from the first day of operation. 
The
project would also provide Thermal Energy with a recurring revenue stream 
from
the energy sales throughout the life of the proposed multi-year contract.
Under the terms of the TEAM agreement, Thermal Energy will repay the
government an amount equal to two per cent (2%) of the revenue from the sale
of bioenergy systems, up to a maximum of $100,000 a year.

Thermal Energy also announced today that Mr. Oliver Toffoli has been
appointed Chief Operating Officer of the Company, taking over from Mr. Denis
Forget who becomes Director of Project Development and Vice President of
Strategic Business Development. Mr. Toffoli will carry out the duties of COO
in addition to his current role as Chief Financial Officer.






Thermal Energy gets government funding for mill project
February 20, 2008


Natural Resources Canada will support the development of a renewable energy 
facility proposed for a pulp and paper mill.
Ottawa, Ontario-based Thermal Energy International (TSX: TMG) said today 
that Natural Resources Canada committed $900,000 in funding for the 
development of a renewable energy facility proposed for an eastern Canada 
pulp and paper mill.

The project, announced last September, is for a combined biomass dryer and 
energy recovery system for the unnamed mill.

Thermal Energy president and CEO Tim Angus said the company "is very pleased 
to receive this important support from the federal government for a project 
which could become a showcase solution for many industries looking to reduce 
their fossil fuel consumption and replace that demand with efficient use of 
biofuel created from biowaste."

The company said the funding would be provided under a repayable 
contribution agreement from Natural Resources Canada's Climate Change 
Interim Strategy Technology Early Action Measures, or TEAM, fund.

Thermal Energy said the project would require no upfront investment from the 
mill.

According to the company, the mill would enter into a multi-million dollar 
renewable energy supply contract through Thermal Energy's subsidiary 
ForEverGreen Energy.

The power would be created from drying the mill's biomass waste stream 
including paper sludge for use as a biofuel, using a combination of Thermal 
Energy's Flu-Ace waste heat recovery technology and its Dry-Rex system.

The company signed a letter of intent with the mill in September and said it 
has completed a detailed feasibility study which has been presented to the 
mill for its review.

Thermal Energy said a decision by the mill is expected this fiscal year.

http://media.cleantech.com/2480/thermal-energy-gets-government-funding-for-eastern-canada-project