CALGARY, Alberta, June 1, 2001 — Maxim Power Corp. announced today that it has entered in to a Letter of Intent with ORS Organic Waste Recycling Stade GmbH of Germany to jointly develop the country's largest combined biomass gasification, composting, and power generation project in the community district of Stade close to Hamburg, Germany.
Pursuant to the LOI, MAXIM will initially own a 25% interest in ORS with an option to increase its ownership to 50% within the next four years. The total capital investment required for the compost treatment facilities, anaerobic digestion system, and the cogeneration power system is approximately $8.5 MM CAD. The project will employ edge anaerobic digestion technology provided under a turnkey contract by Cimbria Bioplan AS, one of the world's firms in biomass gasification processes.
The installed generation capacity will initially be 1.4 MW and will generate approximately 11 million kWh annually. Project revenues will be derived from tipping fees for the bio waste, power sales and the organic compost sales. The biomass supply to feed the process will be provided under a 12 year contract with the community of Stade, which will also pay tipping fees over the contract term. All power generated will be sold under a 20 year fixed price contract to the local utility according to the German Green Energy Law. The plant is already under construction and is scheduled to start up at the end of 2001, reaching full power generation in Q1 of 2002. Future development plans call for the cogeneration plant to expand to 2.5 MW.
Based in Calgary, Alberta, MAXIM provides distributed power solutions in domestic and international energy markets. MAXIM currently owns and operates over 20 MW of generating capacity in Canada, Europe and Asia and has a further 80 MW under evaluation and development. MAXIM trades on the Canadian Venture Exchange under the symbol "MXG".
