Maxim Power Corp T.MXG

Landfill Gas Cogen Project in Delta, B.C.

[Georgia_Straight]

Press Release Source: MAXIM POWER CORP. Maxim Power Corp. Announces Permanent Financing for and Commencement of Construction for the Landfill Gas Cogeneration Project in Delta, B.C. Wednesday January 15, 6:32 pm ET CALGARY, ALBERTA--Maxim Power Corp. ("MAXIM") announced today that it has initiated construction of its 5.55 Megawatts ("MW") landfill gas cogeneration project in Delta, B.C. The project will be financed 85% principally with a 20-year, 7.8% fixed interest rate term debt facility provided by Corpfinance International Limited in Toronto. The $10.3 million cogeneration project represents a unique opportunity to realize a world-class sustainable waste to energy system in British Columbia using state-of-the-art efficient cogeneration technology. The project will also slash greenhouse gas emissions by an estimated 30,000 tonnes per year, which is equivalent to of permanently eliminating 6,000 cars from Lower Mainland streets. Finning International Inc. ("Finning"), MAXIM's strategic partner in Distributed Power, will play a major role in the project. MAXIM has contracted with Finning, to design and build the $6.3 million cogeneration powerhouse to convert the landfill's methane gas into electricity and heat. Finning will supply the facility detailed design, engineering and construction services. The cogeneration facility will include three Caterpillar 3532 engines (rated at 1.850 MW each), switchgear, the heat recovery systems and will be operated by Finning under a 20-year equipment operating and maintenance contract. The cogeneration facility will be built at the CanAgro Produce Ltd.'s greenhouse on 80th Street in Delta and the landfill gas will be delivered to the plant via a 2.9 kilometre pipeline from the existing flare station at the City of Vancouver's landfill. Presently, methane gas produced at the Vancouver Landfill is collected and then burned in a flare to control odour and to minimize greenhouse gas emissions. Rather than flaring the methane, MAXIM will utilize the gas pursuant to a 20-year landfill gas utilization agreement with the City of Vancouver. The gas will be delivered to MAXIM's pipeline and then will be transported to the cogeneration plant at the CanAgro greenhouse site where it will fuel the state of the art cogeneration system. The cogeneration plant is designed to produce 5.55 MW of electricity per hour (enough to power 5000 - 6000 homes in B.C.) and about 600 gigajoules per day of useable heat (enough to heat over 2000 homes annually in the Lower Mainland British Columbia). The electricity will be sold to B.C. Hydro under a 20-year green energy agreement, while the usable heat from the cogeneration system will be delivered to the CanAgro greenhouse during its heating season to support its tomato growing operations. Rick Hopp, Senior Vice President, Business Development for MAXIM says: "This project is a perfect example of MAXIM's creative energy solution strategy. We will utilize a waste source of carbon close to our customer and turn it into viable energy in the form of heat and power. The project is clearly a win-win solution for the Corporation of Delta, the City of Vancouver, CanAgro, our strategic partner Finning and MAXIM shareholders. The project will yield a stable long-term stream of revenues for our shareholders over the 20-year contract period. MAXIM would especially like to thank Danny Schweers CanAgro's Project Manager, the City of Vancouver, the Corporation of Delta, BC Hydro and Finning, for their hard work, commitment and vision in realizing this ground breaking project for British Columbia." Jack Carthy, President, Finning Power Systems comments: "Although we've been involved with a number of projects like this through our operations in the United Kingdom, this project is a breakthrough for Western Canada. Through our strategic alliance relationship with MAXIM, we anticipate many more 'creative energy' opportunities both here and worldwide." Finning sells, rents, finances and provides customer support services for Caterpillar equipment and engines, and complimentary equipment, in Western Canada, the U.K. and Chile. Finning's head office is located in Vancouver, British Columbia. Finning (www.finning.com) is a widely held, publicly traded corporation listed on the Toronto Stock Exchange (symbol FTT). Based in Calgary, Alberta, MAXIM provides innovative distributed power solutions in domestic and international energy markets. MAXIM currently owns and operates 59 MW of generating capacity in Canada, Europe and Asia and has in excess of 100 MW under evaluation and development. MAXIM trades on the TSX Venture Exchange under the symbol "MXG". For more information about MAXIM, visit its website at www.maximpowercorp.com. Contact: Maxim Power Corp. John Bobenic President and C.E.O. Phone: [phone] or Maxim Power Corp. Richard Hopp Senior Vice President Business Development Phone: [phone] or Maxim Power Corp. Victor S. Dusik Vice President Finance and C.F.O. Phone: [phone] Website: www.maximpowercorp.com