THE HIGHLANDER. The Beginnings of GP Hairy Hill

Transcription

1 JUNE 2007 ISSUE The Beginnings of GP Hairy Hill The existing 1 megawatt renewable electricity plant soon to be expanded to export 1.2 megawatts and Produce 40 million liters of ethanol Box 400 Vegreville, Alberta T9C 1R4 Phone: Fax bkotelko@highlandbeef.com

2 HIGHLAND FEEDERS LTD. Page 2 PRESS RELEASE Hairy Hill, Alberta. June 9, 2007 Highmark Renewables and Highland Feeders Ltd. are pleased to announce the proposed development of an Integrated BioRefinery to be located near Hairy Hill, Alberta. Highmark Renewables is an innovation-based renewable energy company, now in its third year of operations of one of North America s largest anaerobic digesters located at the proposed BioRefinery site. Highland Feeders is amongst Canada s largest feedlot operations and has received several awards for industry leadership and environmental practices. Highland has worked in a strategic alliance with Highmark for the past several years. The Integrated BioRefinery is a closed-loop system that produces green energy and fuel ethanol through an innovative, synergistic process. Traditional ethanol production requires large amounts of natural gas, coal, or other non-renewable energy as a fuel source. As a major innovation, the Integrated BioRefinery will use renewable energy from Highmark Renewables anaerobic digesters as the primary source of energy ethanol produced in this manner will have a much more positive energy balance than traditionally produced ethanol. The BioRefinery will produce 40 Million Litres of fuel ethanol annually, and export up to 1.2MW of green electrical power to the Alberta power grid. Additionally, the Biorefinery will generate annual Greenhouse Gas emissions reductions estimated at 75,000 tonnes. This is an environmental win for our community! The Integrated BioRefiney is a new business known as GP Hairy Hill, and has already garnered a significant amount of investment, much of it from agricultural producers. Providence Grain Group (PGG) of Fort Saskatchewan, a producer-owned and controlled grain company, is a major investor in the GP Hairy Hill Integrated BioRefinery. PGG will be the grain procurement managers for the BioRefinery, responsible for procuring 110,000 tonnes per year of the high-starch wheat most suitable for ethanol production. Grain producers who wish to invest in the project can do so by accessing an exciting investment opportunity through PGG that includes a Premium Preferred Delivery Contract linking producers to the down-stream benefits of the BioRefinery; producers are encouraged to visit for more information about producer investment opportunities. Highmark Renewables, Highland Feeders, and GP Hairy Hill invite you to join us for an open house focusing on the GP Hairy Hill Integrated BioRefinery on Tuesday, June 19, 2007, from 1:30pm to 4:30pm at the Hairy Hill Hall. Please refer to the attached Backgrounder for more details on the Integrated BioRefinery. For more information, contact: Mike Kotelko, General Manager GP Hairy Hill at (780) or visit

3 Page 3 GP Hairy Hill Background GP Hairy Hill Integrated BioRefinery TM Growing power. Planning for construction of an Integrated Biorefinery, adjacent to Highland Feeders operation near Hairy Hill is currently under way. Below is a diagrammatic view of the BioRefinery. Barley Highland Feeders Ltd WDG(S) Ethanol Production Facility Wheat Beef Ethanol Manure Integrated BioRefinery Electricity Steam Co-substrate IMUS TM (Integrated Manure Utilization System) Biogas BioUtility TM Fertilizer Hot Water Electricity The Integrated BioRefinery is made up of three major components:?? Ethanol Production Facility produces 40 Million Litres of fuel ethanol per year, using 110,000 tonnes of CPS type wheat. Once processed into ethanol, the remaining grain mash, known as Wet Distillers Grains (WDGS) is sold to Highland Feeders as cattle feed, replacing nearly 30% of barley requirements.?? IMUS Produces renewable Biogas and consumes 150,000 tonnes (greater than 80%) of manure from Highland Feeders annually. The processed material is converted to an odorless, weed seed-free fertilizer and soil builder. BioUtility. Converts biogas into steam and electricity to power the ethanol production facility. Up to 1.2MW of green electricity will be exported to the Alberta grid. Additionally, the BioRefinery will generate a reduction in Greenhouse Gas (GHG) emissions estimated at 75,000 tonnes of CO 2 (eq) annually.

4 Page 4 The water requirement for the BioRefinery will be 50 million gallons annually; in the short-term this is available through a combination of water recycling, the unused portion of Highland Feeders licensed water allocation and a modest increase in water allocation. A planned regional water pipeline will support long-term water management for the BioRefinery. GP Hairy Hill has initiated the licensing and permitting processes. The Integrated BioRefinery has a number of advantages over a stand-alone ethanol production plant. Some of the main advantages are:?? Energy Efficiency; the IMUS component generates renewable biogas, fulfilling the major portion of energy required by the entire facility, whereas stand-alone facilities require large amounts of nonrenewable energy like coal and natural gas to produce ethanol. Ethanol produced here will have a highly positive energy balance.?? More Energy Efficiency; By locating adjacent to Highland Feeders Ltd., and selling the distillers grains produced in the ethanol production process to Highland Feeders as wet cattle feed, no energy is needed to dry the grains into Dried Distillers Grain. This further reduces the amount of energy needed to produce ethanol in the BioRefinery.?? Scale Efficiency; The BioRefinery can be relatively small. Due to all the competitive advantage, the BioRefinery can be small enough to avoid supply issues such as the need for very long-distance shipping of grain. It is expected that most of the grain supply for the BioRefinery will come from within a 60km radius. Stand-alone plants require massive scale to reach the same levels of competitiveness, but because of this, they are exposed to the ups and downs of crop production and longdistance transport.?? Environmental Improvement; using more of the manure from Highland in IMUS means that much less untreated manure will be spread on adjacent land. More Environmental Improvement; significant GHG reductions will be generated by the Integrated BioRefinery, in part due to energy efficiency, but also due to the use of all co-products in the immediate area, rather than drying, shipping, and even land-spreading of waste products. The BioRefinery is an environmental and economic winner! In addition to the above benefits, the BioRefinery will generate a number of attractive long-term employment opportunities in Two Hills County; approximately 20 full-time positions within the BioRefinery will be created. Economic spinoffs from the Integrated BioRefinery may range from an increase in business opportunity for local parts suppliers and service contractors to an increase in business in the service industry in Two Hills County. GP Hairy Hill, along with Highland Feeders and Highmark Renewables are excited about creating new opportunities for investment and economic growth within the community. Grain producers can invest in the project via a special investment opportunity set up by Providence Grain Group (see for details). For more information, please contact: Mike Kotelko, General Manager GP Hairy Hill (780)

5 Page 5 I t s been another busy few months for Spring Creek Ranch. We are continuing to grow the Spring Creek brand with Safeway and can now be found in St. Albert, our first Safeway location outside Calgary and Vancouver. Fresh, 21 day aged, AAA tenderloins, striploins, ribeyes and top sirloins can be found on select Safeway counters. If you can t find our beef at your local Safeway, let your butcher know that you want Spring Creek Beef. You can also find Spring Creek at Master Meats in Calgary where John, who owns and operates the shop, takes pride in cutting and aging our beef to perfection. We are pleased to be able to offer our beef through Master Meats and can assure you that you won t be disappointed. As well as selling individual cuts, John is also selling Spring Creek Ranch Beef by the side, cut and wrapped to your specifications. You can contact him at We have expanded our restaurant business and can now be found in over 20 restaurants in just Calgary alone. The feedback on the beef has been phenomenal and Spring Creek Ranch Beef is now known to be the beef of choice for most high end restaurants. We hope to continue this trend on the West Coast and are also starting to tap into the Eastern Canadian market, shipping product to Toronto especially for the highly respected Chef Mark Thuet. As we move forward, we are continuing to look for ways to add value to the entire carcass. We are in the process of developing some frozen value added products and hope to launch these in most Safeway locations within the next 6-8 months. It is through the support of all our family, friends and associates that Spring Creek Premium Beef brand awareness is growing. Thank you for your support and for spreading the word. You are our best advertisers. Kirstin

6 Page 6 Highland Feeders Natural Beef Program To qualify for the Highland Feeders Ltd. Natural Beef Program, the following protocol must be met.?? Cattle are owned from birth by producer?? Producer must have a minimum of 50 head?? Cattle have not been given any growth hormones or treated with any antibiotics?? Cattle have been weaned for a minimum of 8 weeks?? Cattle have been Age Verified with CCIA and have a Birth Certificate?? Producer has calving records identifying CCIA tag to Producer tag, if different, birth date, and treatment history.?? Producer must sign affidavits verifying the calves have not been treated with any antibiotic of given any hormones All the above criteria must be met and all required paperwork must be received by Highland before the cattle are delivered. For more information please contact Bern or Wayne at Restaurants Phone # Calgary Blink Bonterra Trattoria Chateau Lake Louise Delta Airport Good Earth Cafés Heritage Park Maple Leaf Grill Mercato Muse Restaurant & Lounge The Palliser The Post Hotel Rouge Saint Germain Sheraton Eau Claire Tribune Restaurant & Bar Wildwood Grill Retailers PN The Butcher Shoppe Master Meats Safeway Westhills Are you looking for Spring Creek Natural Beef? Check out these fine restaurants and retailers in Edmonton and Calgary Edmonton Restaurants Phone # Characters Culina Jack's Grill Fairmont Jasper Park Lodge Retailers PN IGA ( st, Edmonton) Safeway (395 Street St. Albert RD, St. Albert)

7 HIGHLAND FEEDERS LTD. Page 7 What s cooking in Kirstin s kitchen? Although we usually think of beef marinades made with oil and vinegar, dairy products can also be used to prepare beef for the grill. For several summers, we have enjoyed these delicious Yogurt- Marinated Beef Kebabs which are served with a Wasabi Aioli, a flavored mayonnaise. Just add a whole grain salad made with bulgur, quinoa or couscous and you have a meal that can be prepared ahead of time, leaving you only to thread the meat on the skewers while the barbeque heats up. Send me an if you would like our Lemon Garbanzo Salad pictured with the kebabs. This one was made with quinoa, an ancient grain that is very high in protein. ¼ cup finely chopped onion 2 tbsp fresh lemon juice 1 tbsp grated peeled fresh ginger 1 tbsp low sodium soy sauce 1/8 tsp ground pepper 2 garlic cloves, minced 1 (6 ounce) carton plain fat free yogurt 1 ½ lb s boneless sirloin steak, trimmed and cut into 20 ( 1 inch) cubes 1/3 cup fat free mayonnaise 2 tsp fresh lemon juice 1-2 tsp prepared Wasabi paste (to taste) 1 garlic clove, minced ¼ tsp salt cooking spray Yogurt-Marinated Beef Kebabs with Wasabi Aioli 1 Combine first 7 ingredients in a large Ziploc plastic bag; add beef to bag. Seal and marinade in refrigerator 4 to 6 hours, turning bag occasionally. 2 Combine mayo, 2 tbsp lemon juice, Wasabi paste, and minced garlic clove. Refrigerate at least 1 hour. 3 Preheat grill on medium to high heat. 4 Remove beef from bag; use extra marinade to coat beef as it cooks. Thread beef cubes on skewers. Wooden skewers should be pre-soaked to prevent burning. Sprinkle with salt, grill for 3-4 minutes per side. Serve with Wasabi Aioli Enjoy!! Kirstin

8 HIGHLAND FEEDERS LTD. Page 8 I M STILL SHAKING President s Message On May 16 th I had the opportunity to travel to China with a delegation that included Minister Doug Horner to participate in an IMUS (Integrated Manure Utilization System) ceremony for a 1000 cow dairy in Northern China. Over the past few years, we ve hosted several delegations from China as the Chinese have been interested in developing a similar system for their livestock facilities. Although Agriculture in China has not received as much modernization as the urban areas, it is encouraging to see their interest in converting manure into electricity. I was encouraged to see that the Chinese have an environmental conscience and in fact, one of the comments from a farm manager was that it was unacceptable for raw manure to be piled outside the barn. Looking forward to your visits and calls ( ). Bern Xiaomei Li, ARC Research Scientist, who was instrumental in developing IMUS and is now expanding that role to include fostering relationships with the Chinese, and Evan Chrapko who is helping Highmark Renewables commercialize our technology