Laidlaw Energy’s first fuel conversion project is an innovative renewable energy project located in Cattaraugus County, New York. The renewable energy project involves the conversion of the Laidlaw Energy & Environmental natural gas cogeneration facility to utilize clean “wood biomass” or wood chips as its fuel source. Upon completion of the conversion to wood biomass, the facility will generate approximately 7 megawatts of electric output, of which approximately 6 megawatts will be exported to the grid pursuant to a long-term contract with the local utility. The remaining 1 MW will be utilized at the facility by a related lumber business, that will also use the excess heat and steam from the generation facility in order to custom kiln dry hardwood lumber. Aside from the production of green energy and the creation of a significant number of well-paying jobs, the conversion of this facility to wood biomass will eliminate the use of approximately 350 million cubic feet of natural gas per annum and neutralize the production of green house gases by the facility.

All wood biomass utilized by the Facility will be “clean, source separated, unadulterated wood waste”, consistent with New York Department of Environmental Conservation (DEC) regulations. Such clean wood waste will mainly be comprised of ground pallets, whole tree chips, wood residue from local furniture manufacturers and other similar forms of wood waste. LLEG has worked closely with DEC during the development process of the fuel conversion project in order to ensure compliance with all applicable state and Federal environmental regulations.

Wood biomass is abundant in the Buffalo area where the plant is situated, since many local businesses generate a significant number of pallets that are used to receive, store and transport products. Many of these pallets end up in landfills or as a waste byproduct from remanufacturing. A substantial amount of wood chips are also generated from land clearing and as a waste product by furniture manufacturers and lumber mills. In order to capitalize on the abundant wood waste within close proximity to the Facility, LLEG has negotiated a long-term Fuel Supply Agreement with Cousineau Forest Products to provide wood chips for the Facility. Cousineau has been providing biomass boiler fuel to power plants and paper mills in the northeast for over 40 years. Headquartered in Strong, Maine, Cousineau is interested in expanding into Western New York and views a relationship with LLEG as a vehicle for that expansion. LLEG’s agreement with CFP, which provides for 100% of the Facility’s fuel requirement, also eliminates the need to manage numerous supply agreements with smaller wood chip sources, thus eliminating the pitfalls of dealing with smaller and potentially less reliable sellers.

Laidlaw Energy believes that the conversion of the facility to wood biomass is a winning strategy and a blueprint for future projects. In the case of the Ellicottville facility, conversion to wood biomass will dramatically reduce the facility’s operating costs, while allowing for increased electric capacity and the production of heat and steam for kiln drying hardwood at highly competitive prices. LLEG believes this strategy can be replicated in order to convert other facilities rendered uneconomic by high fossil fuel prices or as an alternative to coal generation, which can often result in significant hazardous emissions.

2007 has by far been the most productive year for Green Energy in regards to governmental legislation and corporate structures implementing some already existing government mandates for the production of more Biomass Energy. The most recent Green Energy Bill presented by congress and approved by U.S. President Bush has paved the way for the funding of a multitude of green Solutions.

The GREEN* Energy Sector has by far the most well funded experimental technology applications being researched today. Just as advacements must be made in the medical field as human beings progress as a species to ensure our survival, so must at an equal pace the advacements and technologies of alternative green Enegry Solutions be researched and plans to change from a non petrolium economy be executed.

Laidlaw Energy CEO Michael Bartoszek with Senator Hillary Rodham Clinton during a meeting at her office in Washington, DC

"And one of the greatest opportunities we have is in alternative energy and looking for ways to take what we already have, assets like pulp and paper mills and begin to transition them to create energy to lower the cost and put people to work. I think there is a great opportunity for using wood as a fuel of the future just like it was a fuel of the past [applause], and if we can provide the right incentives, if we can give people the extra help they need by tax incentives and other ways of creating new jobs, then we can begin to do this."

Hillary Clinton from the text of a recent speech in Berlin, NH