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Biomass Update

OPG: August 23, 2009

A lot has been happening since OPG's last update. At that time we reported that we received over 80 submissions to our Request for Expressions of Interest for the supply of biomass fuel and transportation services. OPG is continuing to refine our biomass fuel specifications and requirements and will issue a Request for Proposals to supply fuel and transportation services in the coming months.

Concept studies for the conversion of Atikokan to biomass have been completed and detailed engineering for combustion modifications and facilities required for the safe handling and storage of biomass pellets are underway. We are targeting operation of Atikokan on biomass for 2012.

Concept studies are underway for Nanticoke GS and will be started at Thunder Bay GS in the next few months. Biomass fuelling for Lambton continues to be a future option. We are also conducting research on combustion, ash utilization potential and environmental characteristics for a range of agricultural and wood biomass options.

A study of the lifecycle of greenhouse gas emissions is being commissioned for agricultural biomass sources in conjunction with the Ontario Ministry of Agriculture, Food and Rural Affairs. The study will document the typical net greenhouse gas benefit of using agricultural biomass when emissions associated with planting, harvesting, processing and transportation are considered.

OPG continues to talk about our biomass program with groups from across the province and present papers at conferences. We have made more than 55 presentations about our biomass project to outside agencies, industry forums and community groups in 2009.

OPG's biomass program supports the province's commitment to cleaner forms of electricity by providing Ontario with more renewable energy. It also provides the opportunity to continue to use existing generating stations, owned by the people of Ontario, after coal is phased out.

On behalf of OPG thank you for your continued interest.

Chris Young

Vice President

Fossil Projects

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Don Boyle

Chief Administrative Officer

Haldimand County

Cayuga Administration Building

45 Munsee St. N., Cayuga, ON N0A 1E0

Tel: 905-318-5932 x220

www.HaldimandCounty.on.ca