Thermal Energy gets government funding for mill project

Ottawa, Ontario-based Thermal Energy International (TSX: TMG) said today that Natural Resources Canada committed $900,000 in funding for the development of a renewable energy facility proposed for an eastern Canada pulp and paper mill.

The project, announced last September, is for a combined biomass dryer and energy recovery system for the unnamed mill.

Thermal Energy president and CEO Tim Angus said the company "is very pleased to receive this important support from the federal government for a project which could become a showcase solution for many industries looking to reduce their fossil fuel consumption and replace that demand with efficient use of biofuel created from biowaste."

The company said the funding would be provided under a repayable contribution agreement from Natural Resources Canada's Climate Change Interim Strategy Technology Early Action Measures, or TEAM, fund.

Thermal Energy said the project would require no upfront investment from the mill.

According to the company, the mill would enter into a multi-million dollar renewable energy supply contract through Thermal Energy's subsidiary ForEverGreen Energy.

The power would be created from drying the mill's biomass waste stream including paper sludge for use as a biofuel, using a combination of Thermal Energy's Flu-Ace waste heat recovery technology and its Dry-Rex system.

The company signed a letter of intent with the mill in September and said it has completed a detailed feasibility study which has been presented to the mill for its review.

Thermal Energy said a decision by the mill is expected this fiscal year.