Mustus Energy signs Power Purchase Agreement with Shell Energy North America (Canada) Inc.

Posted by on May 31, 2012 in News, Press Release | Comments Off on Mustus Energy signs Power Purchase Agreement with Shell Energy North America (Canada) Inc.

Mustus Energy signs Power Purchase Agreement with Shell Energy North America (Canada) Inc.

Shell Energy North America (Canada) Inc. to purchase power and offsets
CALGARY, May 31, 2012 /CNW/ - Mustus Energy Ltd. today announced that Shell Energy North America (Canada) Inc. will purchase all power and environmental attributes produced by Mustus Energy's facility that will be built in La Crete, Alberta. The Power Purchase Agreement commits Mustus Energy to sell all its power, offsets and other environmental attributes for a 10-year period. Shell Energy North America (Canada) Inc. will have the option of renewing the Power Purchase agreement for up to another 10 year term.

Mustus Energy will begin construction this spring. The biomass facility is expected to begin commercial operations by the summer of 2014, and will provide base-load electrical power to the Alberta grid. The facility will provide enough energy when complete to power over 30,000 Canadian homes. As feedstock, Mustus Energy plans to use the tops of aspen trees that would otherwise be discarded as waste after the trunks are processed into lumber and other products at local mills.

"Providing power and offsets to Shell Energy North America (Canada) Inc. ensures that Alberta benefits from Mustus Energy's clean energy. We welcome this long-term relationship that will continue to grow over time," said Ross Maxwell, chief executive officer, Mustus Energy Ltd.

"We are excited about this innovative commercial structure, which will help us to manage our commercial risks. It allows us to support Mustus Energy's development, which aims to provide various economic and environmental benefits," commented Frans Everts, President of Shell Energy North America.

Canada is a leader in developing and implementing biomass technologies. Six percent of Canada's power comes from biomass, making it the second largest source of the country's renewable energy generation.

About Mustus Energy

Mustus Energy Ltd. is a clean-energy company that captures the economic benefit of combining an abundant supply of aspen from the boreal forest with the capacity-constrained Alberta electricity market. With this vision, Mustus Energy seeks to bolster local economies and provide a sustainable job base for surrounding communities. More information on Mustus Energy can be found at: www.mustusenergy.ca.
About Shell Energy North America (Canada) Inc.

Calgary-based Shell Energy North America (Canada) Inc., a wholly owned subsidiary of Royal Dutch Shell plc (Shell), serves its customers through its regional offices located throughout Canada. As an integral part of the Shell Trading network of companies, Shell Energy North America is the primary marketer of Shell's equity natural gas in North America. As a leader in gas and power marketing, Shell Energy North America and its subsidiaries, trade and market natural gas, wholesale power, environmental products and risk management products with counterparties and customers throughout the region. More information about Shell Energy North America is available online at www.shell.com/us/energy.

For further information:

Mustus Energy Ltd.
Tel: 1-403-800-4744
Email: media.relations@mustusenergy.com

Shell Media Relations
Shell North America (Canada) Inc.
Tel: 1-877-850-5023
Email: media-desk@shell.com

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