Nexterra Receives $6.9 Million Order to Deliver Biomass Gasification System to Department of Veterans Affairs Medical Center in Michigan

VANCOUVER, Sept. 13, 2011 /PRNewswire/ - Nexterra Systems Corp. announced today that it has signed a $6.9 million (USD) contract to deliver a biomass gasification system for the U.S. Department of Veterans Affairs Medical Center (VAMC) in Battle Creek, Michigan. The state-of-the-art biomass gasification system will provide clean, carbon-neutral heat and power to the medical center.

The total cost of the project is $18 million (USD) and it will be delivered in partnership with DeMaria Building Company and HGA Architects. Switching from fossil fuel to biomass supports the Department of Veterans Affairs' objectives of achieving a 30 percent reduction in greenhouse gas emissions (GHG) by 2020, producing a minimum of 7.5 percent of electricity from renewable sources.

"Biomass gasification is the cleanest, most cost effective way for health care facilities and other public institutions to lower their fuel costs and GHGs," says Jonathan Rhone, Nexterra President and CEO. "This project is a significant commercial milestone for Nexterra as we expand into the health care market. We are pleased to support the Department of Veterans Affairs in becoming a leader in on-site renewable energy."

Switching from fossil fuels to carbon neutral biomass will allow the VAMC to cut its GHG emissions by approximately 14,000 tons per year, reducing its carbon footprint by approximately 80 percent. This would be the equivalent of removing 3,500 cars from the road annually. The move also enables the facility to meet the requirements of the Obama Administration's Executive Order 13514, which declared the U.S. Federal government's commitment to reducing its GHGs by 28 percent by 2020.

The 28 MMBtu/hr gasification system will be designed to supply the facility with 2 MW of renewable electrical power and 14,000 pounds per hour of saturated steam. By utilizing locally-sourced residual biomass, which is in plentiful supply in the region surrounding Battle Creek, Michigan, the VAMC will reduce its dependence on fossil fuels, leverage its operational spending locally in support of local industry and divert debris from landfill.

About Nexterra Systems Corp. - Nexterra Systems is a leading supplier of biomass gasification solutions that generate renewable heat, power and syngas for institutional and industrial customers. Working to the highest standards with world leading partners, such as General Electric, Nexterra has successfully supplied commercial gasification systems for projects at the US Department of Energy, University of South Carolina, Dockside Green, Kruger Products, the University of Northern BC and Tolko Industries. www.nexterra.ca

SOURCE Nexterra Systems Corp.