Enerkem Awarded $50 Million Funding by U.S. Department of Energy for its Mississippi Biorefinery Project

December 7, 2009

For Immediate Release

Funding for the construction and operation of its waste-to-biofuels facility has the potential to add to the job and economic diversity of North Mississippi.

MONTREAL, Canada (December 7, 2009) — Enerkem Inc. today announced that Enerkem Corporation, its wholly-owned U.S. affiliate, has been selected by the U.S. Department of Energy (DOE) to receive US$50 million in funding for the construction and operation of its waste-to-biofuels facility to be located in Pontotoc, Mississippi.

Enerkem’s application is one of only four that have been selected in the larger demonstration scale project category of the Recovery Act — Demonstration of Integrated Biorefinery Operations Program. DOE announced the selected advanced biorefinery projects on December 4.

“I appreciate Enerkem's decision to locate its new biofuel manufacturing facility in Mississippi, ” said Governor Haley Barbour. “The development of our energy resources is one of my top priorities. Projects like Enerkem fit the definition of what America needs to solve our nation’s energy problem, more abundant, affordable American energy.”

“This federal investment in the biorefinery project at Pontotoc has the potential to add to the job and economic diversity of North Mississippi,” said Senator Thad Cochran. “At the same time, this biomass venture strengthens our state’s stake in the growing drive to generate renewable and alternative energy sources.”

“This represents an exciting and important investment in Northeast Mississippi,” said Senator Roger Wicker. “There is no question our nation needs to take steps to secure an affordable, stable energy supply. The Department of Energy’s decision to partner with Enerkem means Mississippi will be at the forefront of this important national undertaking.”

“The construction of Enerkem’s new biofuels facility will help create significant numbers of jobs and much-needed business right here in Mississippi’s First Congressional District,” said Congressman Travis Childers (MS-01). “During today’s tough economic times, efforts to increase job opportunities and encourage economic development are more important than ever. In addition, ethanol produced by Enerkem will promote the use of alternative energy sources, contributing to both American energy independence and a cleaner environment. This DOE grant is yet another example of how the American Recovery and Reinvestment Act is working to get our local and national economies back on track.”

“We are extremely proud to have DOE as a partner in our Mississippi advanced biofuels project”, said Vincent Chornet, President and Chief Executive Officer of Enerkem. “We want to thank Governor Barbour, Senators Cochran and Wicker, Congressman Childers and our local partners in North Mississippi for their continued support. Enerkem’s Mississippi waste-to-biofuels project is a model of high energy, economic, and environmental performance, which we intend to reproduce throughout the United States.”

Enerkem Corporation will build and operate the 300 ton-per-day biorefinery in Mississippi, which will produce 10 million gallons of ethanol annually, as well as green chemicals, from sorted municipal solid waste and wood residues and will reduce the pressure to landfill. Since the announcement of its Mississippi project last March, the company has made substantial progress on the environmental permitting process and has further developed the project with its local partners, the Three Rivers Planning and Development District and the Three Rivers Solid Waste Management Authority. The project is expected to create 130 jobs. The company also intends to double the size of its Mississippi biorefinery plant by adding a second module, bringing the total production capacity to 20 million gallons.

About Enerkem

Enerkem makes biofuels and renewable chemicals from waste. With its proprietary technology, Enerkem converts non-recyclable municipal solid waste into methanol, ethanol and other widely used chemical intermediates. Headquartered in Canada, Enerkem owns a full-scale commercial facility in Alberta as well as a demonstration plant and a pilot facility in Quebec. The company is developing additional biorefineries in North America and globally, based on its modular manufacturing approach. Enerkem's technology and facilities help diversify the energy mix and make everyday products greener while offering a sustainable alternative to landfilling and incineration.For more information, visit www.enerkem.com.

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General Inquiries
Marie-Hélène Labrie
Vice President, Government Affairs and Communications
Enerkem Inc.
(514) 875-0284, x231
mlabrie@enerkem.com

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Marie-Hélène Labrie
Benoit Herve
Vice-President, Government Affairs and Communication
Enerkem Inc.
(514) 875-0284, extension 231
mlabrie@enerkem.com

About Braemar Energy Ventures

Braemar Energy Ventures is a venture capital fund making early- to mid-stage investments in the energy technology sector. The firm's principals have invested in more than 60 companies in the sector and have more than 100 years of combined technical, operational and financial experience in energy and energy-related industries. Braemar partners with exceptional companies and management teams, in both alternative and traditional energy markets, that can contribute to a more profitable and efficient energy landscape through innovation and marketplace expertise. Additional information is available at BraemarEnergy.com or on Twitter at twitter.com/braemarenergy or @BraemarEnergy.

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Prosek Partners
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