20/04/2006 - 14:24

GRD transfers 1st emission reduction units from Eastern Creek

20/04/2006 - 14:24

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GRD Limited announced today that it has transferred the first Greenhouse Friendly emission reduction units in accordance with its forward sales agreement with BP Australia.

GRD transfers 1st emission reduction units from Eastern Creek

GRD Limited announced today that it has transferred the first Greenhouse Friendly emission reduction units in accordance with its forward sales agreement with BP Australia.
10,306 ERUs from the 2004 vintage have been transferred and the 2005 vintage credits are in the verification process.
1,500,000 tonnes of the emission reduction units from the Eastern Creek UR-3R Facility, representing the first five years of production, have been forward purchased by BP Australia Ltd and Mitsui & Co (Australia) Limited.

This follows the sale of the first Renewable Energy Certificates (RECs) from the facility in March 2006.

The Eastern Creek UR-3R Facility, which successfully completed independently verified financial and technical bank completion tests last month, is processing 175,000 tonnes of municipal solid waste per annum.

Cliff Lawrenson, chief executive officer, said that the transfer of the ERUs was another significant milestone for the Eastern Creek UR-3R Facility.

"We are working to enhance equity returns from the facility as a matter of priority, having now achieved bank completion."

"Our focus is on maximising each of our revenue streams in order to outperform our budgeted $5.3 million EBITDA and delivering a better than break even EBT result for 2006," he said.

Emission Reduction Units have been forward purchased by Mitsui & Co (Australia) Limited and BP Australia Ltd.

THE FULL MEDIA STATEMENT APPEARS BELOW.
20 April 2006

FIRST EMISSION REDUCTION UNITS SOLD FROM THE EASTERN CREEK UR-3R FACILITY

GRD Limited announced today that it has transferred the first Greenhouse Friendly verified emission
reduction units (ERUs) from the Eastern Creek UR-3R Facility in Sydney in accordance with its
forward sales agreement with BP Australia and the Greenhouse Friendly Program Guidelines. 10,306
ERUs from the 2004 vintage have been transferred and the 2005 vintage credits are in the verification
process. This confirms another source of revenue for the Eastern Creek UR-3R Facility.

1,500,000 tonnes of the emission reduction units from the Eastern Creek UR-3R Facility, representing
the first five years of production, have been forward purchased by BP Australia Ltd and Mitsui & Co
(Australia) Limited.

This follows the sale of the first Renewable Energy Certificates (RECs) from the facility in March
2006.

The Eastern Creek UR-3R Facility, which successfully completed independently verified financial and
technical bank completion tests last month, is processing 175,000 tonnes of municipal solid waste per
annum.

Cliff Lawrenson, chief executive officer, said that the transfer of the ERUs was another significant
milestone for the Eastern Creek UR-3R Facility.

"We are working to enhance equity returns from the facility as a matter of priority, having now
achieved bank completion."

"Our focus is on maximising each of our revenue streams in order to outperform our budgeted A$5.3
million EBITDA and delivering a better than break even EBT result for 2006," he said.

Last year, the Eastern Creek UR-3R Facility also achieved independent certification of its organic
product and began exporting green power from the bio-digestion of Sydney's municipal solid waste,
substantially reducing greenhouse gas emissions compared to landfill.

The certified organic growth media, which is subject to rigorous quality control and comprehensive
batch testing to produce a safe, clean and consistent product, is being used in soil blends for
landscaping applications.

Initial horticultural trials using the organic growth media to grow tomatoes, rockmelons and grapes
have demonstrated significantly increased marketable fruit yield.

The UR-3R products manufactured at the Eastern Creek UR-3R Facility meet the Australian standard
for agricultural grade organic growth media products (OGM-C and OGM-P) for use as a composted or
pasteurised soil conditioner, and as a rehabilitation and remediation organic product (RRO) for use in
forestry applications and in the remediation of landfills and quarries.

Global Renewables has been awarded preferred bidder status for the Lancashire Waste PFI Project,
which has an initial capital cost of around A$500 million and is designed to process more than 20
million tonnes of municipal solid waste under a 25 year A$6 billion revenue contract. The Eastern
Creek UR-3R Facility provided the platform for this award.

ENDS


GRD Limited

GRD is an Australian engineering and development company.

Engineering:

GRD Minproc (100% owned) is a leading Australian engineering contracting business providing high value
services and specialising in the design, procurement and construction of resource projects. GRD Minproc
has a $2.5 billion workbook in addition to a $0.5 billion preferred bidder pipeline of projects. The company's
process engineering and project record are internationally recognised. GRD Minproc has completed over 300
feasibility studies and 200 major design and construction projects in 33 countries for companies such as BHP
Billiton, De Beers, Anglo American, CVRD, and Gold Fields Limited.1

GRD Minproc was awarded the 2005 WA Engineering Excellence Award, International Projects and Exports,
for the Kansanshi copper project in Zambia.

Development:

Global Renewables (100% owned) owns and operates an urban waste treatment project incorporating the
UR-3R Process. at Eastern Creek, Sydney. The Eastern Creek UR-3R Facility processes 175,000 tonnes of
municipal solid waste per annum (11 percent of Sydney's waste) through integrated sorting, biological
digestion and composting processes.2 The Eastern Creek UR-3R Facility is a public private partnership and
operates under a 25 year contract with WSN Environmental Solutions. Global Renewables has technology
licence arrangements with ISKA for the ISKA. Percolation and Sorain Cecchini Techno SRL (SCT) for
resource separation and composting processes.

Global Renewables is preferred bidder for the Lancashire Waste PFI Project, which has an initial capital cost
of around A$500 million and is designed to process more than 20 million tonnes of municipal solid waste
under a 25 year A$6 billion revenue contract.

OceanaGold (57% owned) is a major Australasian gold producer with a dominant position in two major
historic goldfields and ownership of a modern day gold discovery in New Zealand. It is New Zealand's largest
gold producer and has produced more than 2 million ounces of gold.

 

1 Projects include the Ravensthorpe nickel project, Telfer treatment plant, Kansanshi copper project, the Bogoso BIOX. gold
project, the Niquel do Vermelho nickel project and the Eastern Creek UR-3R Facility.

2 Officially opened in September 2004, the Eastern Creek UR-3R Facility is designed to produce biogas sufficient to produce
17,000 megawatt hours of green energy (enough to power 2,250 households), 200,000 tonnes of Emission Reduction Units per
annum (carbon credits equivalent to taking 30,000 cars off the road), and more than 20,000 tonnes of AS4454 certified organic
growth media per annum, in addition to recyclable products (paper, glass, steel, plastics and aluminium). 1,500,000 tonnes of the
Emission Reduction Units have been forward purchased by Mitsui & Co (Australia)

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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