BFuel Chin Lakes Biodiesel Plant Feasibility

The feasibility study for the Chin Lakes facility was completed in July of 2007. The study is a comprehensive feasibility assessment for construction and operation of the biodiesel refinery and associated crush plant, and was undertaken in three parts to provide the most comprehensive results.

Trimark Engineering, Lethbridge: A process-based engineering firm specializing in biofuel processes, Trimark developed the preliminary costing detail for the crush plant and biodiesel process. They have also been retained to conduct a technology investigation and capital cost analysis of alternative biodiesel processing technologies. The final selection of the biodiesel technology will determine infrastructure requirements required by BFuel Canada.

Asset Logics, Vancouver: provided the five year financial models, scenarios and simulations, demonstrating a 79.6% probability of positive NPV with a 95% confidence level.

Meyers Norris Penny, Saskatoon: provided data on crop/feedstock availability in Alberta and market demand for biodiesel, canola meal and glycerine.

Engineering & Design

Trimark Engineering, Lethbridge: has been chosen as the lead engineering firm on the project. Planning for equipment delivery, construction timelines and plant commissioning dates are in the early stages; however the goal is to have the plant fully operational by early 2009.

Environmental

BFuel Canada Corp. also retained the services of Amec Environmental Engineering (Calgary) to conduct an environmental scan for the selected site. This environmental scan is a high level review of each environmental discipline and potential mitigation that may be required during the detailed design phase. This includes considerations for soils and terrain, vegetation, wildlife, surface water quantity, surface water quality, groundwater, historical resources, air quality and waste management.

Utilities

The company has contracted water rights with the County of Lethbridge Rural Water Association, County of Lethbridge and the City of Lethbridge. BFuel Canada Corp. is continuing to work with each of these parties to ensure that there is sufficient water supply, not only for the 40M litre plant, but to allow sufficient supply for future expansion.

There is both natural gas and power at site.

Transportation

The BFuel Chin Lakes Plant site has access to a significant rail spur adjacent to the property allowing for easy access to rail services. Discussions with CPR are underway to determine what if any further development is required to the BFuel site.

The site is adjacent to Highway 3, providing excellent access to a major transportation corridor. The access road is under the jurisdiction of the MD of Taber. It is anticipated that this development will have minimal impact on local traffic levels.

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