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Key approval granted for First-of-Kind Coal Mine Methane Mitigation Project in North America

Monday, April 28, 2008

Montreal, Canada, April 28, 2008 – Biothermica announces today it has received authorization from the U.S. Department of Labor’s Mine Safety and Health Administration (MSHA) to proceed with the implementation of an innovative greenhouse gas (GHG) emission reduction project at Jim Walter Resources’ coal mine no. 7 in Brookwood, Alabama.

Biothermica will use its VAMOXTM regenerative thermal oxidation system to destroy ventilation air methane (VAM - methane gas contained in mine exhaust air) before this potent GHG is released to the atmosphere. This demonstration project will achieve GHG emission reductions of some 40 000 tons of CO2 equivalent (tCO2e) annually.

“Once more, Biothermica positions itself as a pioneer of GHG mitigation initiatives, as we will be the first company to oxidize VAM at an active coal mine in America” said Guy Drouin, President of Biothermica. “Our project will also be one of the first in the world to generate an income stream based on the selling of carbon credits resulting from VAM destruction”.

VAM constitutes 60% to 70% of the GHG emissions from underground coal mines. In 2007, VAM emissions made-up 5% of all man-induced GHG emissions (about 300 million tCO2e). The U.S.A. is the second largest contributor with about 18% of this total.

“Historically considered as waste, ventilation air can now turn into a valuable asset that can be sold as carbon credits on the market” said Thomas E. McNider, General Manager of Mining Engineering at Jim Walter Resources. “Moreover, Biothermica’s VAMOXTM requires no modification to our existing mine equipments and remains independent from our ventilation systems”.

Biothermica plans to develop VAM oxidation projects based on the monetization of carbon credits across the world under different GHG emission reduction schemes such as the Clean Development Mechanism (CDM) of the Kyoto Protocol.

Biothermica has already established itself as one of the best performing CDM project developers in the landfill gas sector with its project in Nejapa, El Salvador. This project exceeded carbon credits production targets within its first year of operation.

About Biothermica

Founded in Montreal (Canada) in 1987, Biothermica is a leader in the design, construction and turn-key delivery of air pollution control and landfill gas solutions as well as waste-to-energy and emission reduction projects. Biothermica also finances, structures and takes equity in technically relevant projects. Biothermica has completed projects in North and South America, Asia (including China), Africa and Europe. www.biothermica.com

About Jim Walter Resources

Jim Walter Resources Inc. (JWR) is the world's largest producer of Blue Creek Coal. Known worldwide among coal producers, the Blue Creek Seam is located in the heart of Alabama's coal-rich Warrior Basin (U.S.A.). JWR provides coal with high BTU and low sulfur content from some of the deepest mines on the North American continent. Customers on five continents have utilized Blue Creek Coal to meet their demanding metallurgical and thermal specifications. www.jimwalterresources.com

Disclaimer

When reviewing this information please note that the information was created as of the date listed, reflected management views as of that date, should be considered in the context of the circumstances prevailing at that time and is only correct as of that date. The information contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

 

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