Expander Energy Inc. is pleased to announce that it has entered into a letter of intent (“LOI”) with Vanderwell Contractors (1971) Ltd., an Alberta family owned company, to build Canada’s first commercial demonstration biomass/gas-to-liquids facility (BGTL project) at Slave Lake area, Alberta, Canada. The plant will produce clean burning synthetic biodiesel (trade named SynDiesel and SynJet) from a variety of biomass feedstocks.

The BGTL project will be completed in two stages. Phase 1 will be the installation of a gasifier and GTL unit with expected production capacity of 120 BPD of synthetic fuel. Upon the successful completion and testing of Phase 1 the companies will proceed with Phase 2 to increase the capacity of the plant to 500 BPD.

Expander has developed and patented the BGTL technology to be used in the facility and has the expertise to build plants of this magnitude. Vanderwell brings over 70 years of expertise in the forestry industry and will provide a sustainable biomass feedstock and a location for the facility.

“There is a huge market for “drop-in” biofuels that are clean, renewable fuel additives and/or alternatives to regular diesel and jet fuel, which are wanted by both consumers and governments right now. Therefore, now is a perfect time to commence our BGTL™ project and we are delighted to be working with Vanderwell Contractors,” says Steve Price, Expander’s CEO.

Ken Vanderwell, president of Vanderwell, states, “We have been looking for an opportunity to add value to our waste forestry residuals, in a more economic and environmentally friendly manner. Expander’s innovative BGTL facility which will produce biofuel from waste forestry residuals fits perfectly into this vision of adding value to a waste by-product of our mill.”

Expander (and partner Rocky Mountain GTL) is in the final stages of construction of a 500 BPD gas-to-liquids (GTL) facility in Carseland, Alberta. The core technology proven in this GTL facility will be used in the BGTL facility at Slave Lake.