GPHH L.P. Sanctions Final Project toward Completion of a Patented Integrated bioRefinery™ in the Fall of 2012
January 24, 2012
Hairy Hill, AB -- Growing Power Hairy Hill L.P. (“GPHH”) has defied the odds and the current global economic malaise. GPHH is now constructing the final module of its visionary Integrated bioRefinery™. This last project is a long-planned ethanol plant to be built adjacent to the earlier-announced (March, 2010) bioGas facility expansion.
Upon completion, the Integrated bioRefinery™ at Hairy Hill, Alberta, Canada will be the world’s largest such facility, and its output is expected to be the lowest-“carbon footprint” ethanol in the world. The overall capital asset will be a $100+ million facility producing ultra-low carbon fuel ethanol, high quality cattle feed, bioFertilizer (pathogen, weed & disease-free), and green energy (from both agricultural and municipal organic waste).
GPHH’s fuel ethanol will easily exceed the most stringent LCA thresholds, such as California's proposed Low Carbon Fuel Standard or LCFS, as well as emerging European limits on carbon content for liquid fuel. In certain jurisdictions (e.g. USA), this production method would even lead to the highly coveted, highly valuable Advanced BioFuel designation. This is a great achievement given that there is no technology risk because it is creatively combining—in a patented manner—older, proven technologies.
Starting approximately August of 2012, GPHH will be buying 110,000 metric tonnes of grain from local area farmers each and every year. If there is a future expansion of the plant, this number could rise. As well, GPHH will remain open to taking municipal organic waste or byproducts of other processes into its energy-creation process in exchange for a tipping fee. Examples of waste other than feedlot manure are glycerin from the making of biodiesel, or slaughter waste, or beverage manufacturing byproducts, or the contents of municipal green boxes being diverted away from landfills.
Construction now underway
Shane V Chrapko, CEO of Growing Power Hairy Hill L.P., indicates “The global economy has become even worse than it was when we expanded the bioGas ‘half’ of the plant in 2009/10. It’s not just household name finance and auto companies that are going bankrupt and disappearing. Now you see large sovereign Western nations—starting with the USA—actually getting their credit ratings downgraded or facing de facto expulsion from their currency union (namely, the Eurozone crisis).”
Chrapko continues, “Our project was not immune to the storm. But we persisted on behalf of the investors who put their trust in us. The news is that we have found a way to get our vision constructed in its entirety. My partners and I are proud to say that we are putting even more people back to work in western Canada, again, and we are doing so at a crucial time for everyone. Needless to say, we are also proud to pioneer a next-generation approach to energy security and greenhouse gas reduction.”
General Manager Mike Kotelko adds, “Growing Power is now in position to give its producer investors the market that we promised them for their non-food grade starch crops. And we will do so at a premium price. Not only are we pleased to help diversify local farmers’ planting and selling options. But we are also immensely happy about diversifying the county of Two Hills No.21 micro-economy in terms of high skilled jobs…both during construction and in the upcoming, on-going, permanent operations for years and years to come.”
Through cash investment by many local area producers (farmers and others; more detail below), whether directly or through Providence Grain Solutions* or PGG Bio- Energy*, significant “passive and patient” funds were invested for an ownership stake in GPHH. Additionally, producer-investors were rewarded with preferred delivery contracts to supply feedstock (high-starch grains) to GPHH.
Alberta is recognized as one of the world’s biggest energy sources with oil reserves second in size only to those of Saudi Arabia and Venezuela, but not all of Alberta's energy receives top environmental marks. One of the project’s backers has a mandate to help reverse this situation by contributing meaningful grant funding to projects that involve substantial, repeatable GHG reductions. After extensive due diligence, the Climate Change and Emissions Management Corporation (“CCEMC”) recently approved a $5 million grant to GPHH. CCEMC’s funds come from large emitters in the province who fail to sufficiently reduce their GHG emissions. CCEMC is unique in North America.
Sustainable Development Technology Canada (SDTC), an arm's length, not-for-profit corporation created by the Government of Canada, has been an early supporter of the development of this technology. In 2003, SDTC provided $1 million to support the underlying technology. In 2008, SDTC announced the commitment of up to $3.3 million for the GPHH project.
Other funding for GPHH’s actual construction and project management costs has been gratefully received in the form of:
>> Repayable funds from:
-- The Government of Canada, Western Economic Diversification Canada (WD) under its Community Adjustment Fund (CAF), and
-- The federal ecoAgriculture Biofuels Capital (ecoABC) initiative (application in process with Agriculture and Agri-Food Canada)
>> 100% non-repayable grants from the Government of Alberta, Ministry of Energy, GPHH’s biggest single supporter (under both the BIDP and BCMDP programs, with future operational support from the BPCP fund)
>> Loans from:
-- Farm Credit Canada (FCC)
-- Agriculture Financial Services Corp. of Alberta (AFSC)
>> Investors, including but not limited to Providence Grain Solutions,
PGG Bio-Energy, and ICM Inc. (ICM via a retainage mechanism).
>> Management itself (Kotelko and Chrapko brothers and George Caraganis, P.Eng.)
GPHH would also like to acknowledge the patient, diligent investigations conducted by Alberta’s Ministry of Environment and the Government of Canada’s Environment officials.
This new capital expansion project by GPHH immediately boosts, yet again, economic activity in the County of Two Hills No. 21. County counselors and administrators have, in turn, been extremely supportive and cooperative, as have GPHH’s neighbors, all of which helped to bring the project into existence. Note that, additionally, GPHH donated some of its land and over $1 million toward forming a non profit Waste-and-Algae Tech “cluster” on the premises which is called “BECii”. BECii is made up of GPHH, sister companies, and arm’s length companies all working cooperatively. BECii has received $4.2 million of financial support from **each** of Government of Canada’s WD and Government of Alberta’s Ministry of Energy.
For all of the above, construction workers and supplies will be drawn from surrounding areas such as Fort Saskatchewan-Vegreville, Vermilion-Lloydminster, and Lac La Biche-St. Paul. As well, on-going Operations employees and materials will be drawn into/from the region over the next several decades, diversifying the western Canadian economy.
Going forward, GPHH is pleased to have Providence Grain Solutions manage the day-to-day grain receiving, contracting, contract administration, purchasing and logistics supply of the feed stock for this state-of-the-art facility.
About GPHH L.P.
Growing Power Hairy Hill L.P. is an Alberta-owned, private limited partnership. It converts both human and agricultural waste into green, sustainable energy, and it also aids a very large nearby feedlot in becoming more environmentally friendly—this is a food PLUS fuel achievement.
GPHH is powered by patented technology supplied by
Himark bioGas Inc. (waste to energy technology; IMUS™ and EIEP™)
and ICM Inc. (ethanol).
GPHH has offices in Hairy Hill, Alberta and Edmonton, Alberta. Over 100 different direct and indirect investors own units of GPHH. All of GPHH's investors are grateful for the project's support from SDTC (Sustainable Development Technology Canada), FCC (Farm Credit Canada), AFSC (Alberta Financial Services Corporation), Alberta’s provincial Ministry of Energy, the federal government’s Community Adjustment Fund (CAF) under Canada’s Economic Action Plan, and Alberta’s Climate Change and Emissions Management Corporation (CCEMC). GPHH is led by two sets of brothers, the Chrapkos and the Kotelkos who have individually and collectively proven their entrepreneurial skills and technology-commercialization instincts and abilities on a repeated basis.
GPHH has generated electricity from high solids waste since the first phase of the plant started selling power into Alberta’s electricity grid in 2005. The plant processes open-pen cattle manure as well as diverting waste from landfill such as food processing and slaughter house byproducts in a process that equally applies to municipal organic wastes (e.g. sewer and restaurant fats/oil/grease (“FOG”)). The technology employed by GPHH is 100% homegrown in Alberta. The patented technology is continually improved by Himark bioGas Inc. which licenses its global patents and know-how around the world (see www.HimarkBioGas.com )
For more information about GPHH contact:
Shane V Chrapko, CEO
+1 (780) 700-5110
* About Providence Grain Solutions and PGG Bio-Energy
Providence Grain Solutions is the operating name for Providence Grain Group Inc. (“PGG”)
PGG is a primarily farmer owned Grain and Agro company operating elevators and/or crop input stores in Fort Saskatchewan AB, Waskatenau AB, Viking AB, Crossfield AB and Marengo Sask. PGG has a JV at Mundare AB with Andrukow Group Solutions Inc.
For more information about Providence Grain contact :
Milton Miller, CEO
+1 (780) 997-0211