Atikokan biomass conversion update

June 24, 2011 – According to Ontario Power
Generation (OPG), the Atikokan, Ontario, generation station repowering project
has seen substantial progress in the past year. The company expects to identify
potential wood pellet suppliers and initiate negotiations in the near future.
Negotiations are also underway with a short list of companies for the design
and construction of a biomass fuel handling system. And proposals for furnace
modifications are currently under review.

In August 2010, the Ontario Minister of
Energy directed the Ontario Power Authority to negotiate a power purchase
agreement with OPG for biomass-produced electricity from Atikokan. Those
negotiations are still ongoing. The amount of fuel consumed and electricity
produced will depend on the power purchase agreement and expected demand for
electricity, says OPG. Once the power purchase agreement is complete, OPG will
finalize negotiations for fuel supply and plant modifications and make a final
recommendation to OPG’s board of directors. At the same time, OPG is proceeding
with studies required for environmental approvals.

More information on the project is
available at www.opg.com/power/thermal/repowering.